Keurig Dr Pepper’s purchase of Dutch coffee company JDE Peet’s for $18 billion marks a striking shift in the international beverage industry. This purchase not only marks a major change for the US beverage corporation, but also one of the largest deals of Europe in the past couple of years. The deal also comes as a huge shift for the JDE Peet coffee company, as it marks the company’s split into two publicly traded companies, one focused solely on coffee, while the other on the Dr Pepper soft drink brand.
The Deal Structure and Immediate Impact
Keurig Dr Pepper will buy JDE Peet’s shareholders for €31.85 a share which results in a 33% increase on the Dutch company’s stock price. While the deal is set for cash only, it is also said that $400 million will be saved over the span of 3 years by using both company’s funds efficiently. After the purchase is done and the deal is closed in 2026, Keurig Dr Pepper will split into two companies:
Global Coffee Co. – $16 billion in yearly net sales, the new coffee only company will merge Keurig’s single serve pod systems with JDE Peet’s brands which include Peet’s Coffee, L’OR and Jacobs, making it a JDE Peet brand powerhouse.
Beverage Co. – $11 billion in yearly net sales, the new drink company will gain market share with coffee brands, manufacturing other major soft drink brands like Dr Pepper, 7UP, Snapple and Canada Dry.
Why Making This Move is Logical
This purchase solves important problems and opportunities for Keurig Dr Pepper. The company’s U.S. coffee segment is struggling with declining sales, shrinking 0.2% year-over-year during Q2 2025 with reduced demand for single-serve pods and brewers. By acquiring JDE Peet’s, which Keurig Dr Pepper coffee divison had 19.8% sales growth in the first half of 2025, they gain immediate scale in international markets and a diversified coffee portfolio less reliant on U.S. consumer trends.
Furthermore, the JDE Peet’s divestiture enables the two firms to pursue differentiated strategic growth priorities. The beverage unit, managed by current CEO Tim Cofer, can further concentrate on Dr Pepper’s strong growth, a brand that outpaced Pepsi to become the 2nd most consumed soda in the U.S. in 2024. The coffee entity, under CFO Sudhanshu Priyadarshi, will deploy JDE Peet’s global supply chain to respond to the volatile coffee bean prices worsened by climate change and a recent 50% tariff on Brazilian imports.
Market and Analyst Reactions
JDE Peet’s Peet’s and Keurig Dr Pepper surprised the market as JDE announced they were buying Peet’s coffee at a 17-18% premium over the market price. JDE Peet’s and Keurig Dr Pepper’s stocks moved in opposite directions with the former only seeing a slight dip after. This was explained with the following reasons:
- Portfolio Diversification: JDE Peet’s opens Keurigs’s access to over 100 countries while also reducing their exposure to the volatile US market.
- Category Leadership: The unified coffee company will come a little closer to Nestlé in the competition for the $400 billion global coffee market.
- Shareholder Value: The rationale follows consumer trend spinoffs unlocking value, such as the Kellogg’s snack division.
The Future of Dr Pepper and Beverage Co.
From a consumer’s perspective, the brand separation will only separate the focus on innovation and market growth on the refreshment beverages for the North American market which is a $300 billion dollar space 6. The brand has continued to be a strong performer, as Keurig Dr Pepper’s refreshment segment in the US saw strong growth of 10.5% in sales in Q2 2025, supported by sales of Dr Pepper’s cherry, cream soda, and blackberry variants.
Upcoming Challenges
The deal is still subject to regulatory and shareholder scrutiny. JDE Peet’s Majority owner, JAB Holding, who also owns a share in Keurig Dr Pepper, may provide some favorable streamlining to approvals. However, macroeconomic inflation, trade, and consumer spending dynamics still pose a threat. The new coffee company, in addition to these challenges, also needs to navigate through the disruptions in the supply chain and the price volatility greatly affecting coffee worldwide.
Final Thoughts
Keurig Dr Pepper’s aggressive acquisition and division maneuvers clearly show the company is trying to position itself for sub-stantial long-term expansion. The company plans to separate itself into two entities, with one focused exclusively on coffee and the other on soft drinks which would increase its market share as a stand-alone brand. For Dr Pepper, a brand that has been in existence for over a hundred years, the move ensures it would receive the relative investment and attention needed to preserve its position in beverage coolers for ages.
Source: https://edition.cnn.com/2025/08/25/business/keurig-dr-pepper-buy-jde-peets-split-intl
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