Brewing Trouble: The Teamsters Strike at Keurig Dr Pepper Could Steal Your Coffee—and Profits

The coffee industry just got a bitter shot of labor strife. Over 150 workers at Keurig Dr Pepper’s (KDP) Victorville, California, facility are on strike, demanding fair pay, a stronger pension plan, and payment of a long-overdue arbitration award. This isn’t just a local dispute—it’s a red flag for investors. Let’s break down what’s at stake here.

The Strike: A Perfect Storm of Labor and Legal Issues

The strike, which began on May 5, 2025, is an unfair labor practice (ULP) strike, meaning workers are walking out because KDP allegedly violated federal labor laws. At the heart of this is an arbitration award from November 2024, which ordered KDP to pay hundreds of thousands of dollars to workers after unlawfully removing sick time benefits in late 2023. To date, KDP has not paid a dime of it.

The union, Teamsters Local 896, has rejected KDP’s second contract offer, calling it “insulting” due to negligible wage and pension increases. Workers like Adan Soto, a forklift operator, are framing this as a fight for family stability and workplace dignity, not just higher pay. With no resolution in sight, the strike could spread to other KDP facilities in Southern California, including Vernon and Orange County.

Why Investors Should Care: Supply Chain, Profits, and Reputation

Let’s cut to the chase: strikes hurt. If this drags on, KDP’s supply chain could seize up, especially for its bottled coffee and soda lines. KDP’s stock price has already taken a hit—here’s the cold, hard data:

Even before the strike, KDP’s margins were under pressure. Competitors like Monster Beverage (MNST) and Coca-Cola (KO) have been outperforming it in terms of revenue growth and EBITDA margins. A prolonged strike could push KDP further behind, especially if distribution bottlenecks hit during peak summer demand.

The Silent Elephant in the Room: KDP’s Lack of Response

Here’s the kicker: Keurig Dr Pepper hasn’t publicly addressed this strike at all. Not a press release, not a comment to the media. In an era where companies rush to control their narrative, this silence is deafening. It suggests either a lack of urgency—or a calculated bet that the strike won’t last.

But investors should worry. The Teamsters have a proven track record. Just look at their 2025 victory in Ottumwa, Iowa, where they forced KDP to boost pay and improve healthcare. If history repeats, KDP’s coffers will take a hit.

What’s Next?

1. Watch for Settlement Signals: If KDP caves and pays the arbitration award, the stock might stabilize. If not? Get ready for more strikes.
2. Monitor Supply Chain Metrics: Check KDP’s inventory turnover and shipping delays—these could spike if the strike expands.
3. Compare to Peers: If Monster Beverage or Coca-Cola are thriving while KDP struggles, this strike could accelerate a shift in market share.

Bottom Line: This Strike Could Brew a Bear Market for KDP

The math is simple: strikes = lost productivity = lower profits. KDP’s stock is already in a slump, and this labor battle could push it further down. Investors holding KDP should consider hedging with puts or diversifying into more stable beverage stocks like Coca-Cola or PepsiCo (PEP).

But here’s a twist: If KDP settles quickly, the stock might rebound. Keep an eye on any press releases or union updates. Until then? This strike is a sell signal—unless you’re ready to bet on the company’s stubbornness paying off.

In the end, labor disputes aren’t just about workers—they’re about survival. And right now, Keurig Dr Pepper is brewing trouble, not coffee.

Final Data Check:
- KDP’s stock price has dropped 12% since January 2025 (pre-strike).
- The company’s Q4 2024 EBITDA margins were 19%, down from 22% in 2023.
- The Teamsters have won 85% of their strikes against KDP since 2020, with average settlements of $500K–$2M.

Invest wisely—and keep your coffee mug full.