BURLINGTON, MASS. — Keurig Dr Pepper Inc. is entering the sports hydration segment through a new long-term sales and distribution partnership with Grupo PiSA, the Guadalajara, Mexico-based parent company of Electrolit.

Under terms of the agreement, Keurig Dr Pepper will sell and distribute Electrolit in the majority of its company-owned direct-store distribution territories and across all channels of trade. The transition will occur early next year. Financial details were not disclosed.

“Electrolit is a brand that has established a strong regional foothold, thanks to its unique product attributes, scientific heritage and extremely loyal customer base,” said Robert J. Gamgort, chief executive officer and chairman of Keurig Dr Pepper, during the company’s Oct. 26 earnings call. “The brand is the market leader in sports hydration in Mexico, and that popularity extends to the US where Electrolit enjoys broad multicultural appeal but over-indexes with Hispanic consumers. Though it has good scale today in the US and already generates more than $400 million in retail sales, representing more than a tenfold increase over the past five years, Electrolit has significant upside potential.”

The partnership follows recent deals that expand the company into new spaces. In the past year, Keurig Dr Pepper invested $300 million to acquire a 33% stake in the La Colombe Coffee Roasters and paid $863 million for an approximately 30% ownership stake in active nutrition company Nutrabolt, owner of C4 Energy.

“With C4, La Colombe and Electrolit having entered our portfolio over the last 12 months, we have meaningfully increased the growth potential for each of these brands while extending a positive halo on the rest of our business,” Mr. Gamgort said. “For example, our total volume in chain convenience stores will increase by approximately 50% after incorporating these brands, providing scale and efficiency benefits across the entirety of our portfolio.”

Net income attributable to Keurig Dr Pepper for the third quarter ended Sept. 30 totaled $518 million, equal to 37¢ per share on the common stock, up from $180 million, or 13¢ per share, in the prior-year period. The company in the year-ago quarter incurred a $311 million impairment charge. Excluding items affecting comparability, adjusted net income rose 1.8% to $673 million from $656 million.

Net sales in the quarter increased 5.1% to $3.81 billion from $3.62 billion the year before, driven by price increases partially offset by a decline in volume/mix.

“The growth path ahead is increasingly evident with both owned and partner brands,” Mr. Gamgort said. “The latter, where our relationships are strategic and long term, growth and mix are positive, and our economics are attractive.”

Within the US Refreshment Beverages segment, operating income grew 110% to $676 million from $322 million the year before, reflecting the favorable year-over-year impact of items affecting comparability in the previous quarter. Net sales increased 5.9% to $2.27 billion from $2.14 billion, driven by price increases with a modest decline in volume/mix.

Mr. Gamgort noted strength in brands including Dr Pepper, Canada Dry, Squirt, Polar, Core and Evian.

“That said, we have work to do elsewhere in the still portfolio, including with Bai, (which) is undergoing a significant restage and reformulation next year,” he added.

US Coffee segment operating income grew 7.7% to $293 million from $272 million last year. Segment sales decreased 3.2% to $1.01 billion from $1.05 billion the year before.

“At-home coffee category volume growth accelerated relative to Q2, but the pace of recovery is admittedly gradual,” Mr. Gamgort said. “From Q2 to Q3, volume trends across the broader category strengthened by about 100 basis points in measured channels, though volumes are still modestly lower year-over-year.

“Single-serve continues to gain share of at-home coffee, with our proprietary data, which is more comprehensive spanning both measured and untracked channels, indicating that Q3 Keurig’s compatible pod consumption volume was approximately flat versus a year ago, improving from down approximately 3% in Q2. These green shoots are encouraging, and we will continue to nurture them as the single-serve market share leader.”

International segment operating income increased 43% to $139 million from $97 million. Net sales increased 21% to $523 million compared with $433 million in the prior-year period.

For the nine-month period, net income was $1.49 billion, equal to $1.06 per share, up from $983 million, or 69¢ per share, the year before. Net sales advanced to $10.95 billion from $10.25 billion.

Management reaffirmed its full-year guidance for constant currency net sales growth of 5% to 6% and adjusted diluted earnings per share growth of 6% to 7%.