Demands Payment Terms of 360 Days for PR Agency Services in Request for Proposal by Keurig Dr Pepper
Keurig Dr Pepper (KDP) has faced criticism over its payment terms following the conclusion of a public relations review of its water, tea, and juice portfolio this week. In order to secure the agency's agreement, KDP has imposed two-thirds of a year's payment term or a requirement for third-party financing.
In an interview with Adweek, KDP confirmed that the PR review was completed and that an agency partner has been selected. However, the selection was outshined by the payment terms, which have drawn condemnation from the trade organization VoxComm.
KDP's payment terms have been under scrutiny due to events at its Victorville, California facility. In November 2024, the company was ordered by an arbitrator to pay hundreds of thousands of dollars to workers following their unlawful removal of sick time benefits in late 2023. As of mid-May 2025, KDP had still not paid the award which has been a central point of criticism in union and public relations reviews.
The criticism also centers on alleged violations of federal labor laws concerning benefits, compensation, and negotiation processes by KDP. Teamsters Local 896, representing the workers, cited unfair labor practices and the company's refusal to honor contractual or arbitration obligations regarding pay and benefits.
Over 150 employees went on an unfair labor practice strike beginning May 5, 2025, demanding fair pay, stronger pensions, and the payment of the long-overdue arbitration award. The strike attracted substantial media attention, with workers describing it as a fight for "family stability and workplace dignity."
In summary, KDP was largely criticized for failing to pay the arbitration award linked to sick time benefits, leading to a labor strike and broader scrutiny of its compliance with labor laws and payment obligations, not for B2B payment terms related to its water, tea, and juice products.
The ongoing dispute between KDP and its workers at the Victorville, California facility has led to a severe critique towards KDP's compliance with labor laws and payment obligations, focusing on the unpaid arbitration award, unfair labor practices, and breach of contractual obligations. Conversely, the financial industry and business community remain somewhat detached, as the controversy revolves around industrial relations and employment practices rather than KDP's payment terms in the finance sector or its portfolio of water, tea, and juice products.
