Keurig Dr Pepper's merger brings a defection, an acquisition and new volleys in coffee wars
It's barely a week into the closing of the mega-merger that created Keurig Dr Pepper and already the beverage industry has seen a defection, an acquisition and a further jolt in the coffee wars. The deal, which closed Monday, creates a beverage giant with $11 billion in revenue that combines Dr Pepper Snapple's drink and distribution network with Keurig' Green Mountain's coffee business. Fiji is one of the best sellers in the Allied Brands collection, sources familiar with the situation tell CNBC, requesting anonymity because the information is confidential. When Dr Pepper Snapple was still a standalone company, it said Fiji's sales were roughly 2 percent of its total revenue. "Allied brands are how Dr Pepper Snapple accesses innovation in emerging and high-growth categories, both rapidly and for a low cost of capital," noted Keurig Dr Pepper CEO Bob Gamgort earlier this year in an investor presentation.