What operational challenges caused KDP's Q4 2024 financial results to deteriorate?

Keurig Dr Pepper (KDP) faced several operational challenges that contributed to the deterioration of its Q4 2024 financial results:

1. **Sales Challenges**: KDP's U.S. Coffee segment experienced a 3.6% decline in net revenue, primarily due to a decrease in prices and lower demand for K-Cup pods. Additionally, the U.S. Refreshment Beverages unit saw pressure from certain still beverage categories, reflecting broader consumer softness.
2. **Promotional Pressure and Pricing Challenges**: The company faced persistent category promotions and pricing pressures, which impacted its operating income and profit margins. This was particularly evident in the U.S. Coffee segment, where operating income fell by 7.2% compared to Q3 2023.
3. **Cost and Inflationary Pressures**: KDP encountered inflationary pressures that threatened to erode its margins, particularly in Q4 2024. These pressures were expected to intensify during the quarter, potentially straining the company's profitability.
4. **Distribution Transition Challenges**: The transition of Ghost's distribution from Anheuser-Busch to KDP's network was anticipated to take time, with a full transition expected by mid-2025. This transition likely incurred additional costs and disrupted the company's short-term performance.

In summary, KDP's Q4 2024 financial results were adversely affected by sales declines, promotional pressure, inflationary pressures, and distribution transition challenges. These factors combined to create a challenging operating environment for the company.