BURLINGTON, Mass., FRISCO, Texas, and GUADALAJARA, Mexico — Keurig Dr Pepper Inc. and Grupo PiSA announced today that KDP will sell, distribute and merchandise Electrolit, a premium hydration beverage, across the U.S. as part of a long-term sales and distribution agreement.
The partnership extends KDP's portfolio into sports hydration, a key white space category for the company, and is designed to significantly expand Electrolit's distribution and continue the brand's accelerated growth.
Leveraging its more than 70-year history and leading market position in Mexico, Electrolit entered the U.S. market in 2014. Since then, it has grown to become a top 5 trademark in the sports hydration category, which, at approximately $11 billion in U.S. retail sales per IRI, represents a large and growing segment within liquid refreshment beverages. With its great taste, premium ingredients and scientific formula, Electrolit is growing at a strong double-digit rate in the U.S., where it already generates more than $400 million in retail sales and has increased more than ten-fold over the past five years.
Under the partnership, KDP will sell and distribute Electrolit in the vast majority of KDP's company-owned direct store distribution territories and across all channels of trade. Building on its Hispanic heritage and regional strengths, Electrolit has a long runway for growth among a broad multi-cultural consumer base as KDP enhances its distribution nationwide.
"We are thrilled to enter the sports hydration category with Electrolit, broadening our portfolio to address this important beverage occasion for our consumers," said Andrew Archambault, president, commercial and beverage concentrates. "Electrolit is a differentiated brand with tremendous consumer appeal, and KDP's proven sales and distribution capabilities are poised to unlock its significant growth potential."
"We look forward to a highly successful alliance and partnership between our companies," said Electrolit USA President and CEO Caridad Ochoa. "KDP is the right strategic partner to further expand Electrolit's footprint in the U.S. KDP's scale, capabilities and insights, coupled with Electrolit's rich heritage and loyal following, will drive the next stage of our determined growth initiatives."
The transition of Electrolit distribution to KDP will occur in early 2024. Other terms of the agreement are not being disclosed.