KDP Targets Coffee and Soda Markets, Acquisition Costs Weigh on Profits

Keurig Dr Pepper Inc. (KDP) on April 23 reported first-quarter 2026 net sales of approximately $4.0 billion, up 9.4% year-over-year, while adjusted diluted EPS declined 7% to $0.39. GAAP diluted EPS plunged 47% to $0.20, reflecting transaction and acquisition costs related to the JDE Peet’s deal.

In the U.S., the refreshment beverage segment remained robust but the coffee business underperformed, and profitability was squeezed by selling, marketing and administrative expenses as well as inflationary pressures. The company nonetheless reaffirmed its full-year 2026 guidance for net sales of $25.9 billion to $26.4 billion and low-double-digit adjusted EPS growth, incorporating JDE Peet’s contributions.

On April 1, KDP completed its approximately $18 billion acquisition of JDE Peet’s, securing over 96% ownership and initiating a mandatory tender offer based on its holding exceeding 95%.

KDP also confirmed its post-merger plan to establish two operating entities: Global Coffee Co, led by newly appointed CEO Rafael Oliveira, will oversee the global coffee business; and Beverage Co will manage non-coffee operations—such as refreshment drinks and juices—in North America.

Formed in 2018 from the merger of Keurig Green Mountain and Dr Pepper Snapple Group, KDP is a diversified North American beverage company with more than 125 brands spanning coffee capsules, carbonated soft drinks, juices and water.

The addition of JDE Peet’s brings global whole-bean and roasted coffee brands to KDP’s U.S.-centric capsule coffee and carbonated portfolio, significantly expanding its scale and presence in the global coffee market.