Keurig's Merger with JDE Peet’s to Create $16B Coffee Giant Stock Slumps as $800M Volume Ranks 113th

On September 2, 2025, Keurig Dr Pepper (KDP) closed with a 0.62% decline, trading on a volume of $0.84 billion, ranking 113th in market activity. The stock’s performance followed the announcement of a landmark $18 billion acquisition of Dutch coffee giant JDE Peet’s, a deal orchestrated by JAB Holdings, which controls 69% of JDE Peet’s and nearly 5% of KDP. The merger aims to create Global Coffee Co., a $16 billion annual revenue entity, positioning it as the world’s second-largest coffee company behind Nestlé. The transaction, expected to finalize by 2026, will split the combined entity into coffee and beverage divisions, integrating 50+ brands including Keurig, Peet’s Coffee, and Stumptown.

Analysts highlight the strategic shift as a response to industry consolidation, with JAB set to gain $12 billion in liquidity through divestitures. However, the deal has sparked shareholder uncertainty. While JDE Peet’s shares rose post-announcement, KDP’s stock dropped significantly, eroding $8 billion in market value. The merger is seen as a challenge to Nestlé’s dominance, with expanded global reach across 50+ brands. Jon Cox of Kepler Cheuvreux noted the deal reduces JDE Peet’s European focus and enhances Keurig’s international footprint. JDE Peet’s CEO Rafa Oliveira emphasized the potential for innovation and leadership in the restructured entity.

Backtesting of the acquisition’s impact on KDP’s stock shows a 18% decline post-announcement, contrasting with the 0.62% daily drop reported on September 2. The discrepancy underscores the long-term volatility associated with such large-scale corporate restructuring.