Keurig Dr Pepper Canada (KDP Canada) has signed an exclusive agreement with Cove Drinks to manage the national distribution, sales, and marketing of Cove Soda across Canada.
In a statement yesterday (11 September), KDP Canada said it would “activate its national commercial engine” using its retail partnerships, distribution infrastructure, and marketing capabilities to expand Cove Soda’s presence and support its growth in the Canadian market.
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Jean Gagnon, vice-president of cold beverages at KDP Canada, said the alliance is a “bold and strategic step forward in the evolution of our CSD portfolio”.
“Cove Soda is uniquely positioned at the intersection of taste and function, aligning perfectly with consumer demand for health-conscious refreshment. We are proud to support a Canadian success story that complements our vision for a more diverse and modern beverage offering,” he added.
Cove Drinks, founded in Halifax, Nova Scotia in 2016, produces a range of probiotic sodas and kombuchas.
The beverages are sugar-free, caffeine-free, and currently available in more than 2,250 retail locations across Canada including Sobeys, Loblaw, and Costco.
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By GlobalDataIn October 2024, Palm Tree Crew (PTC), a US based holding company, invested $2.5m in Cove Soda.
At the time, PTC told Just Drinks that the funding will support the brand’s retail expansion in the US.
John MacLellan, CEO and co-founder of Cove Drinks, said: “This is a defining milestone for Cove Soda.”
He added: “This partnership with KDP Canada gives us the reach and operational strength to bring Cove Soda to even more Canadians, while staying true to what makes our brand special.”
According to KDP Canada, Cove Soda has seen “rapid growth” in the US and Canada since launching in 2023, supported by a product range that includes flavours such as Classic Cola, Orange Cream, and Blue Razz.
The handover of Cove Soda’s commercial activities to KDP Canada is expected to be finalised by the end of 2025.
Financial details of the agreement were not disclosed.
The development follows Keurig Dr Pepper’s agreement last month to acquire Dutch coffee group JDE Peet’s for €15.7bn ($18.36bn), with plans to divide the combined business into two separate publicly traded companies.
Following the acquisition, Keurig Dr Pepper intends to establish Global Coffee Co., which is projected to become the “world’s largest pure-play coffee company”.
It will be headquartered in Burlington, Massachusetts, with international operations based in Amsterdam.
The second entity, Beverage Co., will focus on the North American refreshment beverage sector, operating out of Frisco, Texas. It is expected to generate annual sales of $11bn.
