Bundaberg to expand US footprint with PepsiCo distribution partnership

PepsiCo has signed a distribution agreement with Bundaberg, to help the soft drinks producer boost its presence in the US.

The Australian craft beverage and mixers brand is already the fifth best selling ginger beer in the US. However, the deal hopes to accelerate US sales by making Bundaberg products readily available in more than 400,000 stores, restaurants and bars across the country. 

The brand currently sales root beer, guava, blood orange and other flavoured soft drinks as well as its signature ginger beer in the US. 

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Bundaberg will continue to operate as an independent craft company after the partnership comes into effect on 26 March 2018.

The company says that craft soft drinks are seeing key areas of growth as they can be a non-alcoholic alternative or a quality cocktail mixer.

In fact, the sector rose 3.1% in January with the market expected to reach US$1.5bn by 2020, according to a report by data insight company Spins and IRI. 

“Within PepsiCo’s broad food and beverage portfolio, Craft continues to be an important category for us,” noted Scott Finlow, PepsiCo's global foodservice vice-president of insights and innovation. 

“Bundaberg delivers on what US consumers are seeking, and by leveraging the strength and scale of our national distribution network, we are able to get Bundaberg’s iconic

Ginger Beer and other refreshing beverages onto shelves and into the hands of people across the country.”

Derika Legg, general manager of sales at Bundaberg Brewed Drinks added: “We’ve built our own distribution network globally but given the rapidly growing demand of the US consumer base seeking craft-brewed beverages, this was the ideal next step for Bundaberg.

“PepsiCo is a great partner because they believe in the growth of the category and have world-class national distribution capabilities that will allow us to make our products available to many more people.”