Announced in August, KDP’s acquisition of JDE Peet’s will see the creation of a global coffee heavyweight: with billion dollar brands such as Keurig, Jacob’s, L’OR and Peet’s.
The new entity, with around $16bn in annual sales, is set to transform the global coffee industry, taking on other coffee powerhouses such as Nestle.
Meanwhile, the refreshment beverage business will house high-performing US brands such as Dr Pepper, 7UP and Ghost.
Tim Cofer, CEO at KDP, says the acquisition of JDE Peet’s is expected to close in April as planned.
“We have secured key regulatory approvals and launched the tender offer, positioning us to close the acquisition in early April,” said Cofer, updating analysts in the company’s FY2025 earnings call on Tuesday (Feb 24).
“We’ve already made significant progress on integration planning, including multiple active work streams spearheaded by leaders from both companies and capable advisors with deep and relevant experience.
“Our teams are collaborating well to establish joint ways of working, and a unified operating philosophy, all while exhibiting strategic alignment, shared purpose and a palpable excitement to build a global coffee leader.”
From April, the business will then work as a combined KDP operating structure for an interim period: with the goal of keeping momentum behind sales and growth for each division while they are restructured as two pure-play businesses.
The business is then expected to be ready, operationally, for separation by the end of the year.
“Our precise separation timing will depend on a number of considerations, including market conditions, but we are progressing well against all elements within our control,” said Cofer.
KDP FY2025
KDP enjoyed a strong year in 2025: net sales grew 8.2%, adjusted diluted EPS growth of more than 7%. Results were consistent with guidance.
Net sales in the Refreshment Beverages divisions (which includes brands such as Dr Pepper, 7UP and newcomer Ghost) were up 11.9% to $10.4bn, with market share gains in carbonated soft drinks, energy, and sports hydration.
In coffee, however, sales only edged up 0.6% to $4bn. While sales in K-Cup pods performed well, high coffee prices and tariff impacts weighed on the division.
But KDP says these challenges are not unexpected and are expected to start to ease over the year.
Coffee CEO search
The US refreshment beverage business will be led by current KDP CEO, Tim Cofer.
The new coffee business had been set to be led by former KDP CFO Sudhanshu Priyadarshi: who is now instead leaving KDP in April. KDP’s CFO role has already transitioned to Anthony DiSilvestro (who was Campbell Soup Company’s CFO from 2014 to 2019).
That has left the coffee CEO position open: a search is under way with the process led by the KDP board and Cofer. A new leader should be announced by April.
“Obviously, one of our top priorities, one of our separation prerequisites, is establishing strong leadership teams and boards of directors for each of our future pure play companies,” said Cofer.
“Specific to the Global Coffee Co CEO, I can tell you we’re in the final stages of our internal and external search, and we will plan to have a public announcement by deal close.”
