Polar to take seltzers national, following deal with Dr Pepper

Photo | Grant Welker Polar Beverages' headquarters on Southbridge Street in Worcester. The company has joined a nationwide movement aimed at reducing food waste and promoting recycling.

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By Grant Welker

Polar Beverages has signed a long-term franchise agreement with Keurig Dr Pepper that will take the Worcester manufacturer, known for its seltzer lines, to a national distribution.

The 138-year-old family-owned Polar is the third largest seltzer seller nationally behind LaCroix and Pepsi's Bubly. Polar had a 7.7% market share as of last fall, according to a Wells Fargo analysis of Nielsen data as reported by The Wall Street Journal.

Polar and Keurig Dr Pepper, whose Keurig offices are based in Burlington, already had a deal for Polar to manufacture and distribute the national beverage giant's brands in the Northeast for the past three decades. A new agreement announced Thursday expands that partnership by manufacturing, distributing and selling Polar's seltzers in the majority of Keurig Dr Pepper's direct-store delivery footprint.

Polar will continue to manufacture and distribute its sparkling water in its existing territories, as will select Polar distributors. Polar now has availability in 35% of the national market, according to Keurig Dr Pepper. In the second quarter, retail volume and dollar sales of Polar grew by 25% and 27%, respectively, covering a period of time when people are largely staying and dining at home more.

Polar will continue with its own leadership, marketing and branding under the new agreement.

"We are very proud of Polar Seltzer's 138-year heritage and independent spirit," Ralph Crowley Jr., Polar's president and CEO, said in a statement. "Our expanded partnership with KDP opens a dynamic new chapter, and we look forward to sharing our family of seltzers with their unrivaled sales and distribution network."

Terms of the deal between Polar and Keurig Dr Pepper weren't disclosed.

Keurig Dr Pepper, which also has offices in Texas, has a line of brands that include Dr Pepper, 7-Up, A&W, Schweppes, Canada Dry, Sunkist and others. Keurig, known for its instant coffee makers and Green Mountain Coffee brand, merged with Dr Pepper in 2018.

The deal announced Thursday isn't Polar's first with a beverage giant. Pepsi made an agreement with Polar nearly five years ago to run distribution centers in Idaho and Wyoming, which brought Polar into the Northwest. Polar also produces drinks locally for others, such as ginger beer for Bermuda-based Goslings.

The fiercely competitive sparkling water market has grown this year with Aha, a new seltzer brand Coca-Cola launched in March with flavors similar to Polar's. Sparking water consumption roughly tripled in the five years ending in 2018, according to Beverage Marketing Corp. data.

Polar doesn't have the financial might of Coke or Pepsi but has been in the seltzer industry far longer, Crowley said in 2018.

“We were the first to flavor seltzer,” Crowley said. “We saw this coming in the '80s.”