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Keurig Dr Pepper Reports Long-Term Franchise Deal With Polar Beverages For Polar Seltzer, No Terms Disclosed

Keurig Dr Pepper (NYSE:KDP) and Polar Beverages jointly announced today that they entered into a long-term franchise agreement that will provide national distribution to Polar Seltzer sparkling seltzer waters,

Benzinga · -

Keurig Dr Pepper (NYSE:KDP) and Polar Beverages jointly announced today that they entered into a long-term franchise agreement that will provide national distribution to Polar Seltzer sparkling seltzer waters, including Polar Seltzer'ade and SeltzerJR, across all channels through the power of KDP's direct store delivery (DSD) and manufacturing network.  

Family-owned and operated since 1882, Polar Seltzer is the third largest branded flavored sparkling water1 in the U.S., despite availability in less than 35% of the country. Where distributed, it's the fastest turning sparkling water2. Polar Seltzer, Polar Seltzer'ade and Polar SeltzerJR brands come in more than 35 varieties. In the second quarter, Polar Seltzer grew retail volume and dollar sales 25% and 27%, respectively, based on IRI. The sparkling water category grew more than 15 percent in retail dollars over the past year.

Longtime partners, Polar Beverages has manufactured and distributed key KDP brands in its Northeast territories for over three decades. With this new agreement, KDP expands the partnership by now manufacturing, distributing and selling Polar Seltzer in the majority of its DSD footprint. Polar will continue to manufacture and distribute its sparkling water in its existing territories, as will select Polar distributors. Polar Beverages will continue to drive marketing, brand and innovation leadership.

Commenting on the agreement, Derek Hopkins, KDP Chief Commercial Officer, stated, "Polar Seltzer is an iconic and leading brand in the Northeast, and we are eager to expand that growth across the country. The sparkling water category shows no sign of slowing down and, our already strong partnership with Polar Beverages will accelerate our ability to ensure that Polar Seltzer is available wherever consumers shop."

Ralph D. Crowley Jr. President & CEO, added, "We are very proud of Polar Seltzer's 138-year heritage and independent spirit. Our expanded partnership with KDP opens a dynamic new chapter, and we look forward to sharing our family of seltzers with their unrivaled sales and distribution network."

Terms of the agreement were not disclosed.