Coeur d’Alene-based Tractor Beverage Company announced last week that it had signed a long-term sales agreement with Keurig Dr. Pepper as part of its effort to raise $60 million in growth funding.
Tractor Beverage markets itself as the “only line of non-alcoholic beverages certified organic and non-GMO”. It markets directly to restaurants, which then offer the drinks to customers as fountain drinks.
The deal with Keurig Dr Pepper is expected to leverage the larger company’s manufacturing and marketing capabilities to expand Tractor Beverage’s reach, CEO Kevin Sherman said in a press release.
“We believe this partnership will allow us to solidify our product leadership while leveraging the strength of Keurig Dr Pepper’s powerful distribution system to grow our influence in the restaurant industry,” Sherman said.
Terms of the agreement between Tractor Beverage and Keurig Dr Pepper were not disclosed.
Tractor Beverage posted expected 2021 revenue of $40 million and expects it to grow to $70 million in 2022. The company has grown from selling beverages in 300 restaurants to around 3,500, spokeswoman Chrystie Heimert said.
“From the beginning, our goal has been to be a catalyst for a more accessible and sustainable food system,” Sherman said. “We believe that businesses are one of the most powerful levers for meaningful change, and we are thrilled to partner with Keurig Dr Pepper and work together to provide consumers with premium options when they dine out of the house.”
Derek Hopkins, president of the Cold Beverages Division at Keurig Dr. Peper, said in the press release that consumers continue to seek out new beverage options and experiences.
“We have built strong brands and relationships in the foodservice space, and this strategic partnership with Tractor Beverage complements our beverage portfolio and supports our commitment to innovate and develop growth strategies with our customers,” said Hopkins. .
Founded in 2015, Tractor Beverage built its business on offering sodas made with all-natural ingredients and less sugar, which is also pure cane sugar, Heimert said.
The company, located at 147 E Aqua Circle, Suite 2, Coeur d’Alene, hopes to use its non-alcoholic beverages to develop organic farming practices that can provide a sustainable future for restaurants, consumers and farmers.
Tractor Beverage in 2021 was named to Fast Company’s annual list of the world’s most innovative companies.