US soft drinks giant Coca-Cola has entered into an agreement with Dr Pepper Snapple Group (DPS) to distribute a number of its brands.
The deal is subject to the firm’s acquisition of a North American bottling business, currently controlled by its distribution arm, Coca-Cola Enterprises Ltd.
Under the contract with DPS, The Coca-Cola Company will make a one-time cash payment of $715 million (£494 million) to distribute Dr Pepper, Canada Dry and several other products in the north east of the US and Canada.
Muhtar Kent, chairman and chief executive officer of the organisation, said: “Through this new relationship, the Coca-Cola Company will become one of the largest Dr Pepper trademark bottlers in the US.”
He added that, based on “early pilot programme results”, the firm believes that its customers will be “excited” about the “greater choice” of brands available for distribution in their outlets.
This comes after the announcement last week that Coca-Cola is in the process of completing plans to start production of fruit-based beverages at a new plant in the Biddai region of India.