Keurig Dr Pepper’s $18 billion acquisition of JDE Peet’s signals a massive shift in corporate America as the beverage giant plans to split into two focused companies, creating the world’s largest coffee empire while doubling down on beloved American beverage brands.
Story Highlights
- Keurig Dr Pepper acquiring Dutch coffee giant JDE Peet’s for $18 billion in transformative deal
- Company will split into two independent public entities: Global Coffee Co. and Beverage Co.
- Deal creates world’s largest pure-play coffee company with $16 billion in annual sales
- JAB Holdings orchestrates another major beverage industry consolidation move
Strategic Acquisition Creates Industry Giant
Keurig Dr Pepper announced its acquisition of JDE Peet’s, the Dutch coffee conglomerate owning Peet’s Coffee, for approximately $18 billion on August 25, 2025. The deal represents a 33% premium over JDE Peet’s 90-day average share price, with KDP paying €31.85 per share. JDE Peet’s brings global coffee brands including Jacobs, Douwe Egberts, and L’OR, operating across more than 100 countries. This acquisition positions the combined entity as a dominant force in both North American beverages and global coffee markets.
Corporate Split Strategy Maximizes Shareholder Value
Following the acquisition’s completion, KDP plans to separate into two independent publicly traded companies. Global Coffee Co. will emerge as the world’s largest pure-play coffee company with $16 billion in annual sales, led by current KDP CFO Sudhanshu Priyadarshi. Beverage Co. will focus on North American refreshment beverages including Dr Pepper, Canada Dry, and 7UP, generating $11 billion in sales under current CEO Tim Cofer’s leadership. This strategic split allows each company to pursue tailored growth strategies and capital allocation aligned with their specific markets.
JAB Holdings Orchestrates Industry Consolidation
JAB Holdings, holding 69% of JDE Peet’s voting power and significant KDP ownership, facilitates this strategic alignment between the companies. The investment firm previously orchestrated the 2018 Keurig Green Mountain and Dr Pepper Snapple Group merger, demonstrating its pattern of creating beverage industry consolidation. JAB’s dual investment position provides substantial influence over both the transaction’s execution and the resulting companies’ future direction. This deal continues JAB’s strategy of building dominant positions in coffee and beverage segments through strategic acquisitions and mergers.
Market Impact and Competitive Positioning
The transaction addresses changing consumer preferences and the need for scale in both coffee and beverage sectors. Industry analysts view the deal as strategically sound, leveraging KDP’s North American strength with JDE Peet’s international reach. However, experts note execution risks associated with integrating two major companies before splitting them apart. The deal accelerates consolidation trends across the beverage industry and establishes a precedent for corporate splits following major acquisitions. Both resulting companies will compete more effectively in their respective markets while maintaining operational focus and strategic clarity.
Sources:
Keurig Dr Pepper to buy Peet’s Coffee owner in $18B deal – Fox Business
Keurig Dr Pepper JDE Peet’s acquisition – Just Drinks
Keurig Dr Pepper to Acquire JDE Peet’s – NACS
