Keurig and Dr Pepper are planning to separate, according to multiple reports.
The two beverage behemoths merged in 2018. This week, Keurig Dr Pepper announced it is buying JDE Peet’s, the owner of Peet’s Coffee for $18 billion, reports The Wall Street Journal. Then, the company will split. One company will sell coffee and the other will continue to sell beverages, including Dr. Pepper, 7UP, and Snapple.
According to the Associated Press, Keurig Dr Pepper CEO Timothy Cofer said the separate coffee and beverage businesses would be more viable if they each focused on separate markets.
“Following the separation, each stand-alone entity will lead its industry with a sharp strategic focus and with operating models that are finely calibrated to their unique categories and markets,” Cofer said during a conference call with investors, reports AP.
CNBC reports the purchase of JDE Peet’s is expected to generate $400 million in cost synergies over three years.
Dr. Pepper brought back a fan-favorite beverage earlier this year
Dr. Pepper Creamy Coconut made a comeback earlier this spring.
Dr Pepper released its Creamy Coconut flavor in May 2024. The flavor combined the original 23 Dr Pepper flavors with layers of tropical coconut flavor for a creamy finish.
Here’s how People Magazine described the soda:
“The coconut flavor is reminiscent of a virgin piña colada versus rather than straight-up coconut. Dr Pepper Creamy Coconut Zero Sugar has a little more of an artificial coconut bite than its full-sugar counterpart but still supplies the fruity flavor.”
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