ATLANTA (AP) - The Coca-Cola Co. says it will distribute certain drinks made by Dr Pepper Snapple Group Inc. as part of a $715 million deal.
The agreement was announced Monday morning.
Under the terms of the deal, Coca-Cola will distribute Dr Pepper and Canada Dry ginger ale in the U.S. It will also distribute drinks in Canada. Dr Pepper Snapple gets a 1-time $715 million payment from Coca-Cola.
The beverages have been distributed by Coca-Cola Enterprises Inc., which Coca-Cola is acquiring. Monday's agreement replaces an established deal between Coca-Cola Enterprises and Dr Pepper.
The new agreement will last for 20 years and includes renewal options.
As part of the deal, Dr Pepper and Diet Dr Pepper will be included in Coke's new freestyle fountain dispenser.