Keurig Dr Pepper (KDP), the company behind household names like Dr Pepper, 7Up, and Keurig coffee systems, announced a sweeping $18.4 billion acquisition of JDE Peet’s, the Dutch coffee giant whose portfolio includes Douwe Egberts, Kenco, and Peet’s Coffee. The landmark deal, revealed in a joint statement Monday, will reshape the beverage landscape by combining two iconic businesses and then separating them into two newly listed companies — one dedicated to soft drinks and the other to coffee.
As part of the transaction, Keurig Dr Pepper will purchase JDE Peet’s shares for €31.85 ($37.26) each in cash, valuing the total takeover at €15.7 billion ($18.4 billion). Upon completion, the combined enterprise will spin off into Beverage Co., focused on sodas and ready-to-drink beverages, and Global Coffee Co., expected to become the world’s largest “pure-play” coffee company with projected annual sales of $16 billion across more than 100 markets. Beverage Co. will continue under the leadership of current CEO Tim Cofer, while Keurig Dr Pepper’s CFO, Sudhanshu Priyadarshi, will take the reins at Global Coffee Co.
Shares of KDP slid 8% in Monday morning trading following the announcement, reflecting investor caution over the deal’s size and complexity. Still, the move underscores the growing strategic importance of coffee, with Americans consuming more than 516 million cups each day and the U.S. remaining the world’s largest importer of the commodity. Coffee prices have nearly doubled in the past five years due to rising demand, climate change, trade tariffs, and geopolitical instability — trends that have bolstered the long-term growth case for a dedicated coffee business.
“This is the right time for this transaction,” Cofer said, citing Keurig Dr Pepper’s “operational and financial strength, momentum across our evolved portfolio and increasing coffee category resilience.” Formed in 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple, the company is now betting on a bold strategy that aims to unlock shareholder value by creating two specialized giants: a global soda powerhouse and a standalone coffee titan.
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