Key points:
- Creation of Global Coffee Co., the world’s largest coffee business, combining JDE Peet’s brands with Keurig’s platform.
- Stronger innovation pipeline and global scale likely to impact UK retail coffee shelves.
- Deal expected to close in H1 2026, followed by separation into two independent companies.
Keurig Dr Pepper (KDP) has struck a €15.7 billion (£13.61bn) deal to acquire JDE Peet’s, in a move that will create the world’s largest pure-play coffee business while also carving out a separate challenger in the North American soft drinks market.
The transaction, announced today (25 August), will see KDP bring together its Keurig single-serve coffee system with JDE Peet’s portfolio of household coffee brands such as Jacobs, L’OR, Kenco, Moccona and Peet’s.
Following completion, expected in the first half of 2026, KDP plans to separate into two independent publicly traded companies:
- Global Coffee Co. – a $16bn (£11.83bn) sales business positioned as the world’s leading coffee company, with a broad portfolio spanning all formats and price points. The business will serve more than 100 markets, with leadership positions across 40 countries.
- Beverage Co. – an $11bn sales North American refreshment drinks player with brands including Dr Pepper, Canada Dry, 7UP and A&W, alongside growth platforms in energy and functional drinks.
KDP said the move would unlock “significant value” for shareholders, with $400m in cost synergies expected within three years. EPS growth is forecast to begin from year one of the integration.
Tim Cofer, current KDP CEO, will lead Beverage Co., while CFO Sudhanshu Priyadarshi is set to become CEO of Global Coffee Co. The latter will be headquartered in Burlington, Massachusetts, with international offices in Amsterdam. Beverage Co. will be based in Frisco, Texas.
“Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” said Cofer.
“By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term.”
Rafa Oliveira, will continue to serve as CEO of JDE Peet’s until the closing of the acquisition.
“We are incredibly proud of the formidable global platform that we have built at JDE Peet’s and, together with Keurig, we are looking forward to powering a new era of coffee innovation and leadership, building on JDE Peet’s recently announced ‘Reignite the Amazing’ strategy,” Oliveira said.
The transaction has been unanimously approved by JDE Peet’s board and backed by JAB Holdings’ affiliate Acorn Holdings, which controls 69 per cent of JDE Peet’s voting power.
The separation transaction is expected to be effected through a tax-free spin-off of Global Coffee Co. and is subject to final approval by KDP’s board of directors and other customary conditions.