Keurig Dr Pepper Inc

12. Investments

The following table summarizes the Company's investments in unconsolidated affiliates:

(1)The Company holds a 33.7% interest on an as-converted basis in Nutrabolt, consisting of 32.2% in Class A preferred shares acquired through the Company’s December 2022 investment, which are treated as in-substance common stock, and 1.5% in Class B common shares earned through the achievement of certain milestones included in the Company’s distribution agreement with Nutrabolt.

(2)The Company holds a 4.6% interest in Chobani.

(3)The Company holds a 19.2% interest in Tractor.

(4)The Company holds a 13.1% interest in Athletic Brewing.

(5)Beverage startup companies represent equity method investments in development stage entities and may include entities which are pre-revenue, in test markets, or in early operations.

Chobani Investment

In August 2023, the Company invested $300 million in exchange for common shares in La Colombe that represented a 33.3% ownership interest. The Company additionally capitalized $7 million of incremental third-party costs into the investment balance.

In December 2023, La Colombe merged with a wholly-owned subsidiary of Chobani. The Company’s investment in La Colombe was exchanged for common units representing a 4.6% ownership interest in Chobani.

Nutrabolt Investment

The Company’s interest in preferred units earns the greater of (i) a 5% annual coupon on the preferred equity units plus any accretion for amounts not yet paid or (ii) our share of Nutrabolt’s earnings as if our preferred equity was converted into common units. The Company recorded preferred dividends of $44 million and $3 million during the years ended December 31, 2023 and 2022, respectively, which increased the investment balance for Nutrabolt.

Bedford Investment

In December 2021, the board of directors of Bedford communicated to KDP that it was unable to obtain additional investors, and that Bedford would begin procedures to wind down the company. The Company recorded impairment charges related to its investment and notes receivable in Bedford of $12 million and $17 million during the years ended December 31, 2022 and 2021, respectively, andno impairment charges were recorded during the year ended December 31, 2023. The impairment charges were recorded on the Impairment of investments and note receivable line in the Consolidated Statements of Income.