Keurig Dr Pepper Eyes $18 Billion Deal for JDE Peet's
Reported acquisition of the Dutch coffee giant could lead to a strategic split of KDP's coffee and beverage divisions.
Keurig Dr Pepper (KDP) is reportedly nearing a deal to acquire JDE Peet's, the Dutch coffee powerhouse, for approximately $18 billion. The potential acquisition could trigger a significant strategic realignment, with the combined entity reportedly considering a separation of its coffee and soft drink businesses, effectively unwinding the 2018 merger that formed the beverage giant.
The move, first reported by The Wall Street Journal, would unite KDP's primarily North American coffee presence with JDE Peet's strong European portfolio, which includes well-known brands like L'Or, Tassimo, and Douwe Egberts. JDE Peet’s currently holds a market valuation of about $15 billion, while Keurig Dr Pepper is valued at nearly $50 billion. The potential deal comes as JDE Peet's has demonstrated strong sales momentum, recently raising its annual forecasts despite high prevailing costs in the coffee market.
This acquisition would accelerate KDP's ongoing strategy to diversify its portfolio beyond traditional soft drinks like 7Up and Snapple. The company has been actively expanding into new beverage categories, notably acquiring a majority stake in energy drink maker Ghost Lifestyle last year.
The most significant implication of the deal is the potential subsequent split. Such a move would create two more focused companies: a global coffee pure-play and a separate, diversified beverage company. This suggests a strategic pivot from the integrated model established six years ago, possibly to unlock greater value and agility for each distinct business line.
While the companies have not officially commented, the report comes as Keurig Dr Pepper braces for a challenging 2025, having previously cited expected 'prominent' tariff impacts on its U.S. coffee segment. Shares of Keurig Dr Pepper were largely flat in trading Friday before the news was reported over the weekend.