Keurig Dr Pepper Inc. agreed to buy Core Nutrition LLC, a maker of bottled waters and other drinks, for $525 million -- another sign that beverage companies are looking beyond sugary soft drinks.

Key Takeaways

• The signals are clear: Big beverage companies no longer want to rely so much on their namesake sodas, and they see the opportunities for growth lying elsewhere. PepsiCo agreed to buy SodaStream International Ltd. last month for $3.2 billion. Coca-Cola Co. followed that up with the $5.1 billion purchase of the U.K. coffee chain Costa. This shows the diversification trend isn’t slowing down.
• After Keurig took control earlier this year of Dr Pepper Snapple Group Inc., the company is set on ramping up competition with the big two soft-drink companies. The deal was built on the idea that combining the two will allow more flexibility to cash in on consumer trends. Now it seems Keurig is ready to start implementing the next phase of its beverage plan.
• Core Nutrition ticks off a lot of the boxes of what consumers seem to be looking for. Its Core Hydration is bottled water aimed at athletes, while Core Organic drinks are billed as low in sugar and free of artificial ingredients and pesticides.