The Coca-Cola Co. will pay $715 million to Dr Pepper Snapple Group Inc. for the rights to distribute Dr Pepper and Canada Dry in the U.S. after Coke acquires its largest bottler.
Coca-Cola also will distribute Canada Dry, C' Plus and Schweppes in Canada.
Those drinks have been distributed by bottler Coca-Cola Enterprises Inc., a separate company that Coca-Cola is acquiring. That acquisition is expected to be finished in the fourth quarter.
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, which is able to mix more than 100 drinks.