Keurig Dr Pepper to Acquire JDE Peet’s for $18 Billion, Creating the World’s Largest ‘Pure-Play’ Coffee Company

Keurig Dr Pepper, known for its popular brands such as Dr Pepper, 7Up, and Keurig coffee products, has announced a $18.4 billion acquisition of JDE Peet’s, which includes renowned brands like Douwe Egberts, Kenco, and Peet’s Coffee.

Following the acquisition, Keurig Dr Pepper will split into two separate publicly traded companies: Beverage Co. and Global Coffee Co., according to a joint statement issued on Monday. The deal values JDE Peet’s at €31.85 ($37.26) per share in cash, equating to a total purchase price of €15.7 billion ($18.4 billion).

The news sent Keurig Dr Pepper (KDP) shares tumbling by 8% on Monday morning.

In the United States, where coffee consumption stands at 516 million cups daily, coffee outpaces soda in popularity. Notably, Dr Pepper ranked as the second-most consumed soda brand last year, trailing only Coca-Cola and ahead of Pepsi.

The deal comes amid rising costs for coffee due to factors such as climate change, global conflicts, tariffs imposed by President Donald Trump, and growing demand. Over the past five years, prices have nearly doubled.

Tim Cofer, CEO of Keurig Dr Pepper, expressed optimism about the transaction, citing the company’s “operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience.”

With anticipated annual sales of around $16 billion, the newly formed Global Coffee Co. will become the world’s largest “pure-play” coffee company, selling coffee in over 100 countries. The business split is expected to occur as soon as practicable.

Cofounder Tim Cofer will lead Beverage Co., while Sudhanshu Priyadarshi, current chief financial officer of Keurig Dr Pepper, will head Global Coffee Co.

The merger of Keurig Green Mountain and Dr Pepper Snapple in 2018 led to the formation of Keurig Dr Pepper.