Keurig Dr Pepper has announced plans to acquire JDE Peet’s, the parent company of Peet’s Coffee, Douwe Egberts, and Kenco, in a deal valued at $18 billion. Following this acquisition, the company will undergo a split, forming two independent entities: one focused on coffee products and the other on cold beverages, such as Snapple, Dr Pepper, 7UP, and energy drinks. This decision effectively reverses the 2018 merger of Keurig and Dr Pepper and comes amidst concerns over changing consumer behavior and increasing coffee prices due to trade tensions.
Recent tariffs imposed by the U.S. on Brazilian coffee imports have raised questions about the sustainability of coffee prices, as Brazil is the world’s leading coffee producer. The tariff, set at 50%, was enacted in relation to an investigation involving Brazil’s former president. Despite these market challenges, Keurig Dr Pepper views the separation as a strategic move to enhance growth in both sectors. CEO Tim Cofer described this transition as a “transformational moment,” emphasizing that focused companies could better address market opportunities and lead to improved shareholder value.
Although Keurig Dr Pepper reported a slight decline in coffee sales by 0.2% in the last quarter, it is adapting to market conditions by implementing higher prices. The company anticipates that the future coffee division will generate approximately $16 billion in sales, while the cold beverage segment is projected to reach $11 billion. The split is expected to yield $400 million in cost savings over three years.
After the restructuring, Tim Cofer will lead the cold beverage division based in Frisco, Texas, while the coffee division will be headed by Sudhanshu Priyadarshi from Burlington, Massachusetts, with its international headquarters remaining in Amsterdam. Following the announcement, shares of Keurig Dr Pepper experienced a 9% decline in early trading.
Source: https://www.theguardian.com/business/2025/aug/25/keurig-dr-pepper-peets-coffee