Keurig Dr Pepper secures US$7B to fund JDE Peet’s acquisition, raises 2025 sales outlook 

USA – Keurig Dr Pepper (KDP) has revised its annual sales forecast upward and announced the successful raise of US$7 billion from private equity investors to support its planned acquisition of Dutch coffee company JDE Peet’s. 

The beverage group, which had previously revealed plans to acquire JDE Peet’s for about US$18 billion in August, intends to divide its operations following the transaction. 

Under the restructuring plan, the company will separate its coffee segment from its broader beverage portfolio, which includes brands such as Dr Pepper, into two independently traded public companies. 

According to KDP, US$4 billion of the newly raised capital will be directed toward establishing a new joint venture for K-Cup pod and single-serve manufacturing, over which the company will maintain control.  

The remaining US$3 billion will be used for convertible preferred stock investments in Keurig, later transitioning into the beverage business. 

Despite investor concerns about the timing of the acquisition amid soaring coffee prices, KDP emphasized that the financial move would help strengthen its balance sheet.  

Coffee prices have surged globally due to severe droughts in top-producing nations Brazil and Vietnam, coupled with uncertainties surrounding U.S. trade tariffs. 

The company reported that with the new capital injection, its net leverage ratio is expected to decline to 4.6 times adjusted profits. KDP also reaffirmed its commitment to maintaining investment-grade credit ratings for both its beverage and coffee divisions. 

Jane Gelfand, Senior Vice President of Strategic Finance and Capital Markets, stated that the company is exploring additional measures to reduce debt, including asset sales and new investment opportunities. She added that a partial public offering of the beverage division is under consideration. 

Chief Executive Officer Tim Cofer said that KDP had taken shareholder feedback into account and implemented decisive actions to strengthen its strategic position.  

He added that the enlarged company would be better equipped to manage tariff fluctuations and volatility in commodity markets such as coffee. 

Additionally, KDP announced that its board has initiated a search for a new CEO for the coffee segment, following confirmation that Chief Financial Officer Sudhanshu Priyadarshi will not assume the role. 

Financial Outlook 

For 2025, the company now expects full-year net sales growth in the high-single-digit range, up from its previous mid-single-digit projection.  

In its third quarter, KDP posted a 10.7% increase in net sales to US$4.31 billion, driven by strong performance in U.S. beverages and a recovery in coffee. 

Revenue from the U.S. Refreshment Beverages segment rose 14.4% to US$2.7 billion, supported by double-digit volume growth in carbonated soft drinks, energy, and sports hydration.  

Coffee sales climbed 1.5% to US$991 million, while international revenue grew 10.5% to US$580 million, fueled by demand for mineral water and single-serve coffee products. 

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