Keurig's JDE Peet's Acquisition Already Has The Two Giants Looking To Pull In Separate Directions – CoffeeTalk

Keurig Dr. Pepper has announced its €15.7 billion takeover of Dutch coffee giant JDE Peet’s, which will be split into two publicly listed entities on the US stock market by 2026. The first entity, Global Coffee, will bring together $16 billion in revenues across Keurig’s K-Cup pods, Green Mountain coffee, and JDE Peet’s brands, extending its reach into Europe, Latin America, and the Middle East. The second entity, Beverage Co., will focus on carbonated drinks and energy boosters, overseen by CEO Tim Cofer. The split is driven by the turmoil in the coffee industry, including the pandemic, inflation, competition from Nestlé and Starbucks, and President Donald Trump’s tariffs on Brazilian coffee beans. Keurig aims to hedge against these threats by tying its future to JDE Peet’s global portfolio. The beverage company, on the other hand, aims to chase Gen Z’s restless tastes, with three-quarters of Gen Z consumers trying a new beverage every month. The Keurig-JDE Peet split may also foreshadow broader structural shifts in the food and beverage sector, as PepsiCo faces growing pressure to consider untangling its snacks and drinks divisions.

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