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The U.S. beverage giant behind Dr Pepper, 7Up, and Keurig coffee will acquire the Dutch coffee powerhouse and separate into two listed companies: Beverage Co. and Global Coffee Co.
Keurig Dr Pepper (KDP) announced Monday it will acquire Dutch coffee group JDE Peet’s — owner of iconic brands including Douwe Egberts, Kenco, and Peet’s Coffee — in a deal valued at more than $18 billion, marking one of the largest beverage sector transactions in recent years.
The U.S. company, which produces Dr Pepper, 7Up, and Keurig coffee systems, will pay €31.85 ($37.26) per share in cash to JDE Peet’s shareholders, bringing the total purchase price to €15.7 billion ($18.4 billion).
Splitting Into Two Powerhouses
Following the acquisition, KDP will divide into two separately listed entities: Beverage Co., focused on sodas and non-alcoholic drinks, and Global Coffee Co., a pure-play coffee powerhouse expected to generate $16 billion in annual sales across more than 100 countries.
Tim Cofer, CEO of Keurig Dr Pepper, will continue to lead Beverage Co., while CFO Sudhanshu Priyadarshi will take the helm at Global Coffee Co.
“This is the right time for this transaction,” Cofer said in a joint statement. “We are operating from a position of financial strength, momentum across our portfolio, and increasing resilience in the coffee category.”
Market Reaction
The announcement sparked major market moves: JDE Peet’s shares in Amsterdam surged 17.48%, marking their best trading day on record as investors rushed to position themselves ahead of the deal. Conversely, KDP’s shares plunged 11.48%, its steepest decline since March 2020, as markets reacted cautiously to the scale of the acquisition and restructuring.
“While the transaction is complex and involves a large acquisition (typically not viewed favorably by the market), we see significant value in the separation of the Coffee & Beverage businesses,” Citi analysts said in a research note.
Coffee vs. Soda: Betting on Consumer Habits
Dr Pepper was the second-most popular soda in the U.S. in 2023, just behind Coca-Cola and ahead of Pepsi. But coffee represents an even larger consumer staple: Americans drink an estimated 516 million cups daily, and the U.S. remains the world’s largest coffee importer.
Global demand, climate change, trade conflicts, and tariffs have nearly doubled coffee prices in the past five years, making consolidation and scale increasingly critical in the coffee industry.
Brewing the World’s Largest Coffee Company
The new Global Coffee Co. will emerge as the world’s largest dedicated coffee group, boasting a diverse portfolio of brands, global distribution, and resilience amid shifting commodity markets.
The company’s separation into Beverage Co. and Global Coffee Co. will take place “as soon as practicable,” according to the statement.
Keurig Dr Pepper itself was born in 2018 from the merger of Keurig Green Mountain and Dr Pepper Snapple. With this bold new move, it is positioning itself as a dual global leader — in both soft drinks and coffee — shaping the future of how consumers drink at home and on-the-go.
