Keurig Dr Pepper acquires JDE Peet's for $18 billion to create coffee giant

In August 2025, Keurig Dr Pepper announced plans to acquire JDE Peet's, a prominent coffee company, in a significant all-cash deal worth approximately $18 billion. The acquisition follows a strategic decision to split Keurig Dr Pepper into two distinct entities: Beverage Co., which will focus on soft drinks including Dr Pepper and Canada Dry, and Global Coffee Co., which will concentrate on coffee. This separation aims to allow both companies to flourish independently in their respective markets amidst evolving consumer demands and economic pressures affecting the beverage industry. The reason for this split stems, in part, from the challenges faced in the coffee market, including a downturn in U.S. coffee sales and rising coffee bean prices exacerbated by tariff impacts. Tim Cofer, the CEO of Keurig Dr Pepper, underscored the necessity of this transaction by highlighting the company's strengths and the resilience of the coffee category. The combination of JDE Peet's wide portfolio of brands alongside Keurig's own products is seen as an opportunity to form a formidable player in the coffee industry. After the acquisition, JDE Peet's brands, which encompass well-known names such as Douwe Egberts and Peet's Coffee, will merge with Keurig's coffee offerings. The resultant Global Coffee Co. is projected to have about $16 billion in combined annual net sales, which positions the new business as the largest pure-play coffee company globally. This development is also poised to increase competition across over 100 international markets. The separate Beverage Co. will be headquartered in Frisco, Texas, while Global Coffee Co. will be based in Burlington, Massachusetts, with its international headquarters set in Amsterdam. Following the deal's completion, the companies expect to transition into their new structures as soon as practicable, with Cofer leading Beverage Co. and Sudhanshu Priyadarshi, the current CFO, taking charge of Global Coffee Co. This strategic move marks a significant reshaping of the beverage landscape as companies adapt to contemporary market conditions.