The venture is subject to Coca-Cola's acquisition of the North American bottling business of Coca-Cola Enterprises expected to be firmed up in the final quarter of this year.
Despite the name, Coca-Cola Enterprises is a separate company from Coca-Cola.
"We are pleased to have reached a fair and mutually beneficial agreement with Dr Pepper Snapple Group to continue distributing their brands, marking yet another key milestone in our acquisition of the North American operations of Coca-Cola Enterprises," said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Company.
"Importantly, this agreement aligns with our 2020 Vision of more than doubling our system revenue while increasing our system margins by leveraging the world's most powerful distribution network," he said in a statement.
Under the terms of its new agreements with Dr Pepper, Coca-Cola will make a one-time cash payment of $715 million to distribute Dr Pepper and certain other brands in US and Canada territories, the statement said.
They are currently distributed by Coca-Cola Enterprises.
"The new license agreement will have an initial term of 20 years, with 20-year renewal periods" and replace the existing agreements between Dr Pepper and Coca-Cola Enterprises upon the completion of the acquisition of the North American bottling business.
Coca-Cola will distribute Dr Pepper in the US and Canada Dry in the Northeast, where they are currently distributed by Coca-Cola Enterprises.
It will also distribute Canada Dry, C'Plus and Schweppes in Canada.
Source: AFP
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