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Dr Pepper Pulled From Many Coke Fountains as Court-Approved Split Takes Effect

A Texas court cleared Keurig Dr Pepper to exit its Reyes deal, opening a shift to direct distribution.

Overview

  • The termination of Keurig Dr Pepper’s licensing agreement with Reyes Coca-Cola Bottling took effect on Oct. 27, triggering removals of Dr Pepper syrup at Coke-controlled venues this week.
  • Reyes, which handles Coca-Cola and Monster across roughly 10 states including California, no longer has rights to supply Dr Pepper under the old arrangement.
  • Coca-Cola and Reyes are promoting a revived Mr. Pibb as a substitute in affected fountains, with a new formula, updated packaging, and 30% more caffeine than Pibb Xtra.
  • Keurig Dr Pepper pushed for months to end the deal in order to gain direct oversight of its distribution network, while Reyes had sought to keep the partnership.
  • Effects vary by region, with Oregon distribution unchanged because Dr Pepper there is handled by PepsiCo and other Coca-Cola–affiliated bottlers, according to the company.