
Daily Coffee Report 8/11/26
Daily coffee report

- Coffee
By: Alexis Rubinstein, Managing Editor - Coffee Network
CoffeeNetwork (New York) - Keurig Dr Pepper Inc. (NASDAQ: KDP) and La Colombe today announced a strategic partnership, including a long-term sales and distribution agreement for La Colombe ready-to-drink coffee and a long-term licensing, manufacturing and distribution agreement for La Colombe branded K-Cup® coffee pods. Keurig Dr Pepper will also make an equity investment in La Colombe, enabling KDP to participate in the value creation upside expected from the partnership.
La Colombe is an independent, high-growth, super premium coffee company that serves consumers across multiple channels, including the retail trade, branded cafes, foodservice and direct to consumer. The brand is the only vertically integrated ready-to-drink coffee company, owning the entire coffee journey from conscious bean sourcing and premium roasting to the creation of exceptional product experiences for loyal customers.
Under the long-term sales and distribution agreement, KDP will sell and distribute shelf-stable La Colombe RTD coffee beverages in KDP's direct store distribution network, which is expected to drive meaningful growth in the brand's availability across these mainstream retail channels. In addition, KDP will manufacture, sell and distribute La Colombe branded K-Cup® coffee pods, under a license agreement, in the U.S. and Canada.
KDP will make a cash investment in La Colombe of $300 million, in exchange for a 33% ownership stake in the company, making KDP the second largest investor in La Colombe behind its majority owner and Chairman, Hamdi Ulukaya. La Colombe plans to use the proceeds to accelerate growth and pay off debt. KDP's investment in La Colombe represents a multiple of approximately 3.0X estimated 2024 consolidated net sales.
"We are excited to partner with Hamdi and the La Colombe team to drive value for both companies," stated KDP Chairman and CEO Bob Gamgort. "This partnership will enable KDP to expand its reach into high growth ready-to-drink and super premium coffee segments and will meaningfully increase La Colombe's availability to consumers."
"I'm extremely excited to join forces with Bob and his team at KDP to bring La Colombe to every corner of this amazing country," said Ulukaya. "I joined the La Colombe journey eight years ago because I believe in its mission, quality, craftsmanship and social impact – and that everyone deserves quality, crafted, natural coffee. With this partnership we'll be closer to fulfilling the mission of providing exceptional coffee to all."
The transition of La Colombe ready-to-drink coffee distribution to KDP will begin in late 2023, while the launch of La Colombe branded K-Cup® pods will occur during 2024. The equity investment, which is subject to regulatory approval, is expected to close by the end of the third quarter. KDP expects the strategic partnership to be modestly accretive on a full-year basis, beginning in the back half of 2024.
Advisors on the deal for KDP included Guggenheim Securities LLC and Skadden, Arps, Slate, Meagher & Flom LLP. La Colombe's advisors included Blank Rome LLP.
Alexis Rubinstein
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Daily coffee report


August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.


Daily coffee report

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