La Colombe K-Cups are coming thanks to a $300M investment from Keurig’s parent company
The partnership also includes a new distribution network for the Philly-founded coffee company.
La Colombe is getting a $300 million investment from beverage producer and manufacturer Keurig Dr Pepper Inc. as part of a new partnership.
The Philly-founded coffee company will also sell its products through Keurig Dr Pepper’s North American distribution network and will launch a single-serve coffee capsule next year.
“Partnering with KDP is the ideal next step to accelerating our growth and continuing our mission of making people happy with coffee,” Chuck Chupein, president of La Colombe, said via email Thursday.
Keurig Dr Pepper will have a 33% ownership stake in La Colombe with this investment, which is subject to regulatory approval, making it La Colombe’s second-largest investor.
Chairman Hamdi Ulukaya, founder of Greek yogurt brand Chobani, became the majority investor in La Colombe in 2015.
La Colombe will join the company’s beverage portfolio, which includes Green Mountain Coffee Roasters, Snapple, and Canada Dry among others.
KDP, with headquarters in Burlington, Mass., and Frisco, Texas, has 28,000 employees and had net sales of $14.1 billion last year.
La Colombe plans to use the investment to “accelerate growth and pay off debt,” according to a statement from Keurig Dr Pepper.
As part of the partnership, a La Colombe single-serve coffee capsule is expected to launch sometime next year and will be manufactured and distributed by KDP in the United States and Canada.
Brands including Starbucks, Dunkin’, Café Bustelo, and Green Mountain Coffee Roasters already sell their coffee in Keurig’s signature single-serve coffee K-Cup.
The coffee company previously had an agreement with Chicago-based Molson Coors Beverage Co., which began distributing its products in January 2021. That agreement ended in March, according to the Philadelphia Business Journal.
La Colombe was founded by Todd Carmichael and J.P. Iberti in 1994 with a first location near Rittenhouse Square. Today, the company has 32 stores in — including Philadelphia — Austin, Boston, Chicago, New York City, Washington, and various cities in California.
What this new investment means for the growth and presence of the company locally is yet to be seen.
“We are rooted in Philadelphia, where our journey began, and we remain steadfast in our commitment to this community,” a La Colombe spokesperson said via email Friday.
“Our new strategic partnership with KDP allows us to bring our Philadelphia-born brand to more people in more parts of the country so they, too, can experience the delicious, quality crafted coffee we all love,” the spokesman said.