Keurig Dr Pepper (XNAS-KDP) has announced an $18 billion all cash acquisition of Dutch coffee giant JDE Peet’s (XAMS-JDEP), marking a major strategic shift in the global beverage landscape. The deal, which represents a 33% premium over JDE Peet’s recent trading average, will result in the formation of two separate publicly listed companies: one focused on coffee and the other on beverages.
JDE Peet’s, known for brands like Douwe Egberts, L’OR, and Peet’s Coffee, will merge its operations with Keurig’s single-serve coffee platform to form “Global Coffee Co.” a pure coffee company with projected annual sales of $16 billion. Meanwhile, “Beverage Co.” of Keurig will focus on North American refreshment drinks, including Dr Pepper, 7UP, and Snapple, with expected sales of $11 billion.
The acquisition comes amid rising coffee prices driven by volatile weather and new U.S. tariffs on Brazilian beans. JDE Peet’s recently raised its annual forecast after outperforming expectations, while Keurig has flagged subdued performance in its coffee segment due to market pressures