JDE Peet’s acquisition gives Keurig Dr Pepper a boost

Partly due to the acquisition of JDE Peet’s, the parent company of coffee brands such as Douwe Egberts, Senseo, and Jacobs, the beverage group Keurig Dr Pepper saw its revenue rise by more than 70%. Next year, the group will split up again.

Gross margin under pressure

Revenue for Keurig Dr Pepper—which, in addition to its coffee operations, also owns soft drink brands such as Dr Pepper, 7Up, Sunkist, and Canada Dry—rose by 70.6% to $7.34 billion (€6.56 billion). But even excluding the acquisition of the coffee company, there was solid growth of 8.6%, driven by a 6.5% increase in volume and a 2.1% rise in prices. Earnings per share rose by 22%. This means the company is performing better than analysts had expected. However, rising costs caused the gross margin to shrink from 54.3% to 48%.