Diana Marszalek 10 Nov 2022 // 10:33AM GMT
NEW YORK — Beverage giant Keurig Dr Pepper is reviewing US PR agency support for its water, tea and juice portfolio, which includes top sellers like Snapple, PRovoke Media has learned.
Sources, however, say the terms of the proposed deal are skewed against PR agencies, which could have to wait up to a year to get paid in full.
KDP — the eighth largest food & beverage company in the US — is looking for a consumer-focused agency to handle public relations duties such as media relations, influencer marketing, brand partnerships, entertainment or talent collaborations, and experiential marketing, according to the RFP it issued in October.
The remit covers brands including Bai, Clamato, Core Hydration, Mott’s and Snapple. It does not, however, include social media management, digital marketing, content marketing, or design services, the RFP said.
PRovoke Media understands KDP is offering a low seven-figure deal. KDP is midway through its review and expects to formalize a partnership by mid-December.
Sources across the industry, however, criticize KDP’s requirement that its next agency partner agree to the company’s highly unusual terms, which could see the firm waiting up to a year to get paid in full or having to pay a fee to get the cash sooner from a financial services company.
“KDP’s payment term strategy requires 360-day payment terms from third party strategic suppliers. The Suppliers have the option of self-funding this requirement or opting to participating in KDP’s Supply Chain Financing Program which we currently have with Prime Revenue. The capability of participants willing to enable KDP’s payment term strategy will be heavily factored in this RFP decision process. Please find attached an introductory deck explaining the SCF program, prepared by Prime Revenue,” the RFP said.
KDP did not respond to request for comment.
KDP’s search for a new water, tea and juice PR firm comes a year-plus after the company moved its US and Canadian media accounts to Havas Media from IPG’s Initiative. The company has also worked with Spark Foundry and Deutsch.
KDP has about 125 beverage brands and earned more than $12 billion in revenue in 2021. The company was created in 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple Group.