Keurig Dr Pepper to Acquire JDE Peet’s for $180B, Boost Coffee Business

Keurig Dr Pepper is reportedly close to finalizing a deal to acquire JDE Peet’s NV, a prominent European coffee company, for approximately 180 billion USD. This acquisition is aimed at strengthening Keurig Dr Pepper's struggling coffee business. The deal is expected to be announced as early as Monday, according to a knowledgeable source. The combined entity is anticipated to subsequently split its beverage and coffee operations.

JDE Peet’s NV, valued at around 150 billion USD, and Keurig Dr Pepper, with a market value nearing 500 billion USD and a portfolio that includes brands like Sprite, 7UP, and Canada Dry, are poised to create a formidable presence in the global beverage and coffee market. This strategic move by Keurig Dr Pepper is a response to the challenges faced by its coffee business, which has seen relatively stable sales in the United States during the second quarter. The price increase of K-Cups was offset by a decline in the shipment volume of single-serve coffee pods and coffee makers. The company had previously indicated that its coffee business is expected to underperform for the remainder of 2025, partly due to the impacts of inflation and tariffs.

JDE Peet’s NV, on the other hand, has reported organic revenue growth that exceeded expectations for the first half of the year and has raised its full-year performance forecast. The newly appointed CEO, Rafael Oliveira, has implemented a comprehensive strategic overhaul for the Amsterdam-listed coffee producer. This initiative aims to drive profitability amidst recent increases in green coffee prices, which have compressed profit margins. JDE Peet’s has projected that its gross profit will increase by 1% to 3% between 2026 and 2027, with adjusted EBIT expected to grow at an annual rate of 3% to 4%. The company is focusing on a brand-centric strategy, centered around its "three key bets," which include Peet's and L'OR.

This acquisition by Keurig Dr Pepper is a strategic move to enhance its market position and leverage the strengths of both companies to navigate the challenges posed by inflation and rising input costs. The combined entity will have a stronger presence in the global beverage and coffee market, with a diverse portfolio of brands and a comprehensive strategy to drive growth and profitability. The acquisition is expected to create synergies between the two companies, allowing them to better compete in the global market and meet the evolving needs of consumers.