Keurig Dr Pepper will acquire JDE Peet's for $18 billion and then split into two standalone companies: one selling coffee and the other selling cold beverages and energy drinks. The transaction unwinds the 2018 Keurig-Dr Pepper merger and expands coffee operations beyond North America by adding JDE Peet's global brands such as L'OR, Jacobs, Douwe Egberts, Kenco and Moccona. The combined coffee business is expected to generate about $16 billion in annual net sales, increasing scale to compete with Nestlé and Starbucks and to better absorb impacts like recent U.S. tariffs on Brazilian imports.
"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 Monday during a conference call with investors.
"We like, and I like, the coffee category. Why? It's huge. It's ubiquitous," Cofer said. "Obviously, we've up to this point focused on North America. But the global data shows coffee is consistently growing on a volume basis above population."
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