Legal aspects of a $715 million licensing and distribution deal between The Coca-Cola Co. and Dr Pepper Snapple Group Inc. were handled by both companies’ in-house counsel, according to spokespersons for the companies.
Plano, Texas-based Dr Pepper Snapple Group announced Monday that it had agreed to distribute some of its brands through Coke once Coke completes its planned acquisition of Coca-Cola Enterprises’ North American Bottling unit.
Under the licensing agreements, Coke would distribute Dr. Pepper throughout the United States and Canada Dry in the Northeastern part of the country, where Coca-Cola Enterprises currently distributes those products. Dr Pepper Snapple Group will begin selling Squirt, Canada Dry, Schweppes and Cactus Cooler, which now are sold by Coca-Cola Enterprises, in some U.S. territories.
The distribution term is 20 years, with the option to renew for another 20 years.
Dr Pepper Snapple Group in 2009 inked a similar but more expensive 20-year licensing deal with PepsiCo, valued at about $900 million.