Keurig Dr Pepper to distribute, market Cove soda nationwide across Canada 

CANADA – Keurig Dr Pepper (KDP) has entered into an agreement with Cove Drinks to manage the nationwide distribution, sales, and marketing of the Cove Soda brand across Canada. 

KDP Canada said it will “activate its national commercial engine” by using its retail partnerships, distribution infrastructure, and marketing capabilities to increase Cove Soda’s market presence and support its expansion throughout the country. 

Jean Gagnon, vice-president of cold beverages at KDP Canada, described the collaboration as a strategic move to broaden the company’s carbonated soft drink portfolio.  

“Cove Soda is uniquely positioned at the intersection of taste and function, aligning perfectly with consumer demand for health-conscious refreshment. We are proud to support a Canadian success story that complements our vision for a more diverse and modern beverage offering,” he said. 

Cove Drinks, founded in Halifax, Nova Scotia in 2016, produces a line of probiotic sodas and kombuchas that are sugar-free and caffeine-free. The products are currently available in more than 2,250 retail locations across Canada, including Sobeys, Loblaw, and Costco. 

John MacLellan, CEO and co-founder of Cove Drinks, called the partnership with KDP a defining milestone for the company. “This partnership with KDP Canada gives us the reach and operational strength to bring Cove Soda to even more Canadians, while staying true to what makes our brand special,” he said. 

Cove Soda has seen rapid growth in Canada and the US since its launch in 2023. Its range includes flavours such as Classic Cola, Orange Cream, and Blue Razz.  

In October 2024, Palm Tree Crew (PTC), a US-based holding company, invested US$2.5 million in Cove Soda to support its retail expansion in the United States. 

The transition of Cove Soda’s commercial operations to KDP Canada is expected to be finalised by the end of 2025. Financial terms of the agreement were not disclosed. 

The announcement follows Keurig Dr Pepper’s agreement to acquire Dutch coffee group JDE Peet’s for €15.7 billion (us$18.36 billion).  

Under the plan, KDP will split its business into two separate publicly traded entities: Global Coffee Co., which will become the “world’s largest pure-play coffee company,” and Beverage Co., which will focus on the North American refreshment beverage sector. 

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