What factors contributed to the sharp decline in KDP's net profit in Q4 2024?

The decline in Keurig Dr Pepper's (KDP) net profit in Q4 2024 can be attributed to several key factors:

1. **Global Brewing Industry Challenges**: The global brewing industry is facing headwinds such as strict regulations, high taxes, inflation, and rising costs. These factors are likely to persist, potentially squeezing profit margins of alcohol producers.
2. **Declining Beer Demand**: Beer consumption in the US has fallen to its lowest level since the 1970s, with the American spirits industry surpassing beer in revenue for the first time in 2022. This trend continued in 2023, driven by the spirits Ready-to-Drink (RTD) category. The American brewing industry is not alone, as global drinking habits have shifted dramatically over the last few years, with increasing consumer focus on health and wellness, leading to a growing low and no-alcohol trend.
3. **Cost Pressures**: Energy, raw materials, packaging, logistics, and labor costs have remained at a high level, putting pressure on the brewing business in many countries. This pressure on cost has been a significant challenge for the brewing industry, affecting profit margins.

In conclusion, the decline in KDP's net profit in Q4 2024 is a result of a combination of global brewing industry challenges, declining beer demand, and cost pressures. These factors have created a challenging environment for the company, leading to a decline in net profit.