Dr Pepper will unwind its merger with Keurig after buying Peet’s for $18 billion
NEW YORK — Less than a decade after their merger, Keurig and Dr Pepper plan to become separate companies again.
Keurig Dr Pepper said Monday it is buying the owner of Peet’s Coffee in an $18 billion (15.7 billion euro) . Then it will break itself in two, with one company selling coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP and energy drinks.
The agreement unwinds the 2018 merger of Keurig and Dr. Pepper. Shares of Keurig Dr Pepper fell 7% in early trading Monday.
Keurig Dr Pepper CEO Timothy Cofer said the separate coffee and beverage businesses would be more nimble and better able to focus on growth opportunities in their own markets.
“Following the separation, each stand-alone entity will lead its industry with a sharp strategic focus and with operating models that are finely calibrated to their unique categories and markets,” Cofer said Monday during a conference call with investors.
The combination with Peet’s parent JDE Peet’s, which is based in Amsterdam, significantly expands Keurig’s presence beyond North America, where it’s known for its single-serve coffee machines. JDE Peet’s owns the brands L’OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super and Moccona.
Cofer said the combined coffee business will generate $16 billion in annual net sales. The combined buying power will help the companies compete with other large coffee players like Nestle and Starbucks and take advantage of growing global coffee sales.
“We like, and I like, the coffee category. Why? It’s huge. It’s ubiquitous,” Cofer said. “Obviously, we’ve up to this point focused on North America. But the global data shows coffee is consistently growing on a volume basis above population.”
The merger could also help the company cushion the impact of U.S. tariffs. President Donald Trump imposed a 50% tariff this summer on most imports from Brazil — the world’s leading coffee producer — for an investigation of its former president, Jair Bolsonaro, a Trump ally.
Meanwhile, sales of Dr Pepper’s traditional soft drinks have been slowing as health-conscious consumers look for new alternatives. The newly formed beverage company, with $11 billion in annual sales in the U.S. and Mexico, can continue to pivot to its faster-growing beverages, like the energy drinks Ghost and Bloom.
The companies said they expect to save around $400 million over three years because of the merger, which is expected to close in the first half of 2026.
Once the two companies are separated, Cofer will become CEO of the cold beverage business, which will be based in Frisco, Texas. Keurig Dr Pepper’s chief financial officer, Sudhanshu Priyadarshi, will lead the coffee business, which will be located in Burlington, Mass. Its international headquarters will be in Amsterdam.
The deal is the latest big maneuver in the food and beverage industry, which has been trying to keep up with changing consumer tastes.
In 2023, Kellogg Co. split into two companies. Mars bought Kellanova, the owner of snack brands like Pringles, last year. Italian confectioner Ferrero announced in July that it planned to buy WK Kellogg, the cereal company.
Russia sends 3 Iranian satellites into orbit, report says
The report said that a Russian rocket sent the satellites on Sunday from a launchpad in eastern Russia.
Viral global TikToks: A twist on soccer, Tanzania’s Charlie Chaplin, hope in Gaza
TikToks are everywhere (well, except countries like Australia and India, where they've been banned.) We talk to the creators of some of the year's most popular reels from the Global South.
This painting is missing. Do you have it?
An important work from a rediscovered artist has been absent from public view since the 1970s. A New York curator is hunting for it.
Memory loss: As AI gobbles up chips, prices for devices may rise
Demand for memory chips currently exceeds supply and there's very little chance of that changing any time soon. More chips for AI means less available for other products such as computers and phones and that could drive up those prices too.
Brigitte Bardot, sex goddess of cinema, has died
Legendary screen siren and animal rights activist Brigitte Bardot has died at age 91. The alluring former model starred in numerous movies, often playing the highly sexualized love interest.
For Ukrainians, a nuclear missile museum is a bitter reminder of what the country gave up
The Museum of Strategic Missile Forces tells the story of how Ukraine dismantled its nuclear weapons arsenal after independence in 1991. Today many Ukrainians believe that decision to give up nukes was a mistake.
