Feb 1, 2024

Capstone Partners Advised Grupo PiSA, owner of Electrolit USA, on Entering Exclusive Distribution Agreement with Keurig Dr. Pepper (NASDAQ:KDP)

Capstone Partners advised Grupo PiSA —the largest pharmaceutical manufacturer in Latin America and owner of sports drink company Electrolit—on entering an exclusive distribution agreement with beverage giant Keurig Dr. Pepper (NASDAQ:KDP). The transition of Electrolit distribution to KDP will occur in early 2024. Further terms of the agreement were not disclosed.

Electrolit is a rapidly growing beverage company focused on hydration solutions and sports drinks. Following decades on the market in Mexico, Electrolit entered the U.S. market in 2014, and is currently the country’s 5th largest sports drink brand. To learn more, please visit Electrolit here.

Electrolit is growing at a strong double-digit rate in the U.S.—where it already generates more than $400 million in retail sales—and has increased more than ten-fold over the past five years. The distribution agreement will give Keurig Dr. Pepper the right to sell and distribute the beverage products under the Electrolit brand, marking KDPs first entry into the $11 billion sports hydration category.

Electrolit USA’s President and CEO, Caridad Ochoa, commented, “KDP is the right strategic partner to further expand Electrolit’s footprint in the U.S. KDP’s scale, capabilities, and insights, coupled with Electrolit’s rich heritage and loyal following, will drive the next stage of our determined growth initiatives.”

“We are thrilled to enter the sports hydration category with Electrolit, broadening our portfolio to address this important beverage occasion for our consumers,” commented KDP’s President of Commercial Beverage Concentrates, Andrew Archambault. “Electrolit is a differentiated brand with tremendous consumer appeal, and KDP’s proven sales and distribution capabilities are poised to unlock its significant growth potential.”

As one of the largest consumer packaged goods companies in North America, Keurig Dr. Pepper offers roughly 125 brands in every major category across hot and cold beverages. KDP serves retail customers globally through standalone and combined distribution networks and operates roughly 55 manufacturing and processing facilities in North America. Headquartered in Burlington, MA, and Frisco, TX, the company holds leadership positions in soft drinks, specialty coffee and tea, water, juice, and mixers. Its iconic brands include Dr Pepper, Seven Up, Green Mountain Coffee Roasters, Canada Dry, Snapple, Bai, Mott’s, and more.

The expert investment banking professionals on Capstone Partners’ Consumer Investment Banking Team work with leading middle market companies operating in the Beverages market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Consumer Investment Banking Team, here.