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Keurig brews deal with Dr. Pepper in the U.S.

Pair will make single-serve capsules for cold beverage system

Keurig Green Mountain struck a deal with Dr. Pepper Snapple to make single-serve capsules for use in Keurig's soon-to-be released cold beverage system.

The companies did not disclose terms of the agreement Wednesday or specify which particular brands will be included. The soda maker, based in Plano, Texas, sells Sunkist, Snapple, Dr. Pepper, Hawaiian Punch and other brands.

The multi-year deal will make Keurig Green Mountain Inc. the exclusive producer in the U.S. and Canada for the drinks that use fountain syrup in the new Keurig Cold platform.

Keurig Cold, which is expected to launch in the fall, lets users to make cold carbonated drinks, sports drinks, teas, juice drinks and enhanced waters at home.

Shares of Keurig Green Mountain, which is based in Waterbury, Vermont, rose more than 3 per cent to $131.22 before the opening bell.

Dr. Pepper Snapple Group Inc., like other soda makers, has been trying to maintain sales as American tastes and diets shift.

U.S. sales volume of carbonated soft drinks fell 3 per cent in 2013, according to a report released last year by Beverage Digest, an industry tracker. That was a steeper drop than the 1.2 per cent decline in 2012 and brought total soda volume to the lowest level since 1995.

"Our team is committed to building and enhancing our leading brands, and this agreement presents an opportunity to reach consumers in new occasions,'' said Jim Trebilcock, a marketing executive with Dr. Pepper Snapple.

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