Keurig Dr Pepper announces $18bn acquisition of JDE Peet’s

Keurig Dr Pepper headquarters in Burlington, Massachusetts, set to lead Global Coffee Co. following the JDE Peet’s acquisition. Credit: Shutterstock

Keurig Dr Pepper (KDP) has reached a definitive agreement to acquire JDE Peet’s, owner of Peet’s Coffee and a leading global coffee and tea company, in an all-cash transaction valued at approximately $18 billion (£15.7 billion). The move will trigger a major corporate restructuring, with KDP planning to separate into two independent, publicly traded companies after the deal closes:

• A global coffee company with around $16 billion in combined annual sales.
• A North American refreshment beverage company with over $11 billion in annual sales.

Creating a global coffee champion

The split is designed to establish a pure-play global coffee company by combining KDP’s North American single-serve coffee platform, Keurig, with JDE Peet’s extensive international portfolio. The new coffee entity will operate in more than 100 countries, holding a leading market position in 40 of them. Its brand portfolio includes L’OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super, and Moccona.

Leadership and operational structure

KDP’s CEO, Tim Cofer, described the combination as an “exceptional opportunity to create a global coffee giant.” Following the separation, Cofer will lead the new beverage business from Frisco, Texas, while KDP’s CFO, Sudhanshu Priyadarshi, will helm the new coffee business from Burlington, Massachusetts, with international offices in Amsterdam.

Strategic rationale: supply chain specialisation

For the food and beverage sector, the KDP/JDE deal illustrates a broader trend towards operational focus. By splitting into two category-specific companies, each entity can optimise logistics, innovation, and supply chain management for its respective market. The Global Coffee Co. can concentrate on volatile coffee commodity markets, international trade regulations, and multi-channel distribution, from retail to foodservice. The Beverage Co. can focus on leveraging its North American direct-store-delivery (DSD) network to expand soft drinks sales.

Implications for the food industry

Portfolio rationalisation and operational clarity are increasingly critical for companies navigating global market volatility. By separating the coffee and beverage operations, KDP aims to unlock value that would be difficult to achieve under a single, complex corporate structure. The deal highlights the importance of specialised supply chains, focused leadership, and operational agility for large-scale F&B companies.

Strategic takeaways for the beverage industry

These moves highlight contrasting approaches in the global coffee sector. While Coca-Cola is reportedly divesting Costa Coffee after facing operational and market challenges, Keurig Dr Pepper is expanding strategically through its acquisition of JDE Peet’s and the planned corporate split. Together, the stories illustrate a broader trend: beverage companies are realigning portfolios, sharpening operational focus, and prioritising supply chain resilience to navigate volatile commodity markets and competitive pressures.