ATLANTA (AP) _ The Coca-Cola Co. will pay $715 million to Dr Pepper Snapple Group Inc. for the rights to distribute Dr Pepper and Canada Dry in the U.S. after Coke acquires its largest bottler.
Coca-Cola also will distribute Canada Dry, C’ Plus and Schweppes in Canada.
Those drinks have been distributed by bottler Coca-Cola Enterprises Inc., a separate company that Coca-Cola is acquiring. That acquisition is expected to be finished in the fourth quarter.
Monday’s agreement between Coke and Plano, Texas,-based Dr Pepper replaces an established deal between Coca-Cola Enterprises and the beverage maker.
The new agreement will last for 20 years and includes renewal options and makes the company Dr Pepper’s largest distributor, with about 42 percent of its business.
Rival PepsiCo Inc. has 39 percent, and independent bottlers distribute the remaining 19 percent.
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