The company may split into two entities, one selling coffee and the other soft drinks
of ConsumerAffairs-
Keurig Dr Pepper (KDP) will acquire JDE Peets for 15.7 billion in cash, creating a new global coffee giant.
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The company will later split into two independent, publicly traded firms: one focused on coffee and one on beverages.
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Consumers can expect more innovation and brand expansion, with Global Coffee Co. positioned as the worlds #1 pure-play coffee company.
In 2018, soft drink maker Dr Pepper pivoted into the world of coffee when it merged with Keurig, maker of the single-serve coffee maker. Keurig Dr Pepper is now moving deeper into the coffee world by acquiring JDE Peets in an all-cash transaction.
This move sets the stage for KDP to later split into two separate, U.S.-listed public companies:
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Global Coffee Co., a coffee-focused powerhouse with brands like Keurig, Jacobs, LOR and Peets.
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Beverage Co., a growth-oriented challenger in the North American refreshment beverage market, anchored by iconic names like Dr Pepper, Canada Dry and 7UP.
Once the acquisition closes and the spin-off is complete, Global Coffee Co. will become the worlds largest pure-play coffee company, boasting approximately $16 billion in annual net sales. The company will operate across more than 100 countries, holding the first or second market position in 40 of them.
With a portfolio spanning every coffee format, from pods to instant to specialty caf brands, company executives say Global Coffee Co. will be positioned to lead innovation in a $400 billion global coffee category. The combined business expects to unlock $400 million in cost synergies over three years and deliver earnings growth starting in year one.
The complementary combination of Keurig and JDE Peets creates a global coffee champion, said Tim Cofer, CEO of KDP. By building two focused companies, we are poised to deliver strong growth and shareholder value.
Meanwhile, Beverage Co. will emerge as a standalone player in the $300 billion North American beverage market, with more than $11 billion in annual net sales. Its portfolio includes Dr Pepper, Canada Dry, 7UP, and fast-growing energy and functional drinks.
What it means for consumers
For coffee lovers, this deal could mean faster rollout of new brewing systems, broader availability of international brands, and more choice across price points and formats. For soft drink fans, the separation gives Dr Pepper and its sister brands renewed focus in competing with Coke and Pepsi.
Industry analysts expect both new companies to invest heavily in innovation, whether its next-generation coffee machines or new ready-to-drink beverages.
Posted: 2025-08-25 11:44:10
