Keurig Dr Pepper forecasts strong full-year growth amid JDE Peet’s acquisition, coffee price pressures

USA – Keurig Dr Pepper has projected strong full-year performance, supported by its pending acquisition of JDE Peet’s, even as it faces rising green coffee prices and tariff pressures. 

In the fourth quarter, the beverage maker reported growth across all business segments while advancing plans to separate into two independent companies by the end of the year. Chief Executive Officer Tim Cofer said the company remained focused despite challenging conditions.  

“We navigated a dynamic operating environment with agility while strengthening our foundation for the long term,” Cofer said. 

Net sales for the quarter increased 10.5% to US$4.5 billion. The U.S. Refreshment Beverages segment rose 11.5% to US$2.7 billion, while the U.S. Coffee segment grew 3.9% to US$1.2 billion. The International segment recorded the strongest percentage increase, rising 21% to US$604 million. 

“On a segment basis, U.S. Refreshment Beverages was the standout performer, delivering double-digit net sales growth and high single-digit operating income growth,” Cofer said during the earnings call.  

“International was resilient in the face of dynamic macro trends, growing on both a top- and bottom-line basis. As expected, U.S. Coffee trends were softer in aggregate but demonstrated underlying progress.” 

The company noted that the U.S. Coffee segment has been challenged by tariffs and higher green coffee costs. Despite these pressures, Keurig Dr Pepper continues to move forward with its strategic restructuring and acquisition plans. 

The company first announced in August its intention to separate into two companies, with one focused on North American refreshment beverages and the other centered on global coffee operations.  

At the same time, it revealed plans to acquire JDE Peet’s, the owner of the Peet’s brand. Cofer previously stated that the separation would create two focused businesses positioned for growth and shareholder value creation. 

Keurig Dr Pepper now expects to complete the JDE Peet’s acquisition in early April and remains on track to finalize the separation by year-end.  

“Our precise separation timing will depend on a number of considerations, including market conditions, but we are progressing well against all elements within our control,” Cofer said. 

During the call, Cofer also highlighted the company’s digitally led marketing strategy, which he said enables real-time insights, precise audience segmentation and more effective content delivery. 

Addressing potential changes to SNAP benefits in certain states, including Florida and Texas, Cofer said restrictions on eligible products or benefit amounts could influence purchasing behavior.  

“You should expect us to respond as we learn more in a way that prioritizes delivering our plans and effectively serving our consumers, which can include offering other price pack architecture and affordability options,” he said. 

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