Keurig Dr Pepper reports 3.5% revenue increase in Q1 2024 

USA – Keurig Dr Pepper (KDP), the American beverage and coffeemaker conglomerate, has announced a 3.5 percent year-on-year increase in revenue, reaching US$3.92 billion during the second quarter of 2024.  

This growth was driven by a combination of increased sales volume and higher prices. 

Net sales rose by 3.5 percent to US$3.92 billion, with volume—excluding pricing and currency changes—increasing by 1.8 percent. Prices were up 1.6 percent compared to the same period last year.

The company’s U.S. refreshment beverages division, which includes popular brands like Snapple, Canada Dry, and Sunkist, saw a 3.3 percent increase in sales, with prices rising 2.9 percent. 

However, KDP’s U.S. coffee division experienced a 2.1 percent decline in sales, totaling US$1 billion for the quarter. This decline was primarily due to a 2.9 percent drop in pricing, although shipments of K-Cup pods remained stable, thanks to strong market share trends. In contrast, the company’s international division recorded a 15.5 percent increase in sales, though it contributes to less than one-sixth of KDP’s total revenue. 

CEO Tim Cofer expressed satisfaction with the company’s performance, stating, “Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth. Strong execution drove our performance, as we continued to advance our long-term strategic agenda.

Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market—all underpinned by an unrelenting focus on cost efficiency and capital discipline.” 

KDP closes K-Cup production site

Despite these positive results, KDP is undergoing significant operational changes. The company announced plans to close its U.S. K-Cup production site in Windsor, Virginia, and shift operations to a new facility in Spartanburg, South Carolina.

The Windsor plant’s closure, slated for the end of the year, will affect 379 employees. This move is part of KDP’s strategy to rebalance its production capacity and improve operational efficiency geographically. 

KDP issued a WARN notice on July 16 regarding the Windsor plant closure. A company spokesperson explained, “The timing of this closure aligns with the production ramp of our Spartanburg, South Carolina, manufacturing facility, and enables us to rebalance our production capacity geographically and advance our effort to operate efficiently.”

The company added that affected employees could apply for positions at other KDP sites, with a priority review of their resumes and qualifications. 

The Spartanburg facility, which opened in 2021, focuses on coffee roasting and packaging K-Cup coffee pods.

Last year, KDP invested US$100 million in production, warehousing, and distribution at the South Carolina site, following a US$385 million investment in the plant, which employs 155 staff. With the Windsor plant’s closure, KDP’s U.S. coffee-roasting facilities will be reduced to five. 

In April, KDP reported a 2.1 percent decline in sales from its U.S. coffee business for the first quarter of 2024. The company has since emphasized the “value” of its products to counter declining sales. 

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