Mirror Review
August 25, 2025
Keurig Dr Pepper is close to an $18 billion deal to buy Dutch coffee company JDE Peet’s, owner of brands like Peet’s, L’OR, and Douwe Egberts.
If successful, the Keurig Dr Pepper coffee deal would combine U.S. coffee pods with European retail powerhouses, changing how the company competes with Nestlé and Coca-Cola.
Why the Coffee Deal Matters
Keurig Dr Pepper (KDP) is already a beverage giant with 125+ brands and $15B in annual revenue. Its portfolio stretches from sodas like Dr Pepper and 7UP to Green Mountain Coffee.
But its coffee business has been mostly US-centric.
Buying JDE Peet’s adds global scale, new premium brands, and the flexibility to either grow coffee into its biggest strength or turn it into a standalone business.
Here are 8 undeniable reasons the Keurig Dr Pepper coffee deal fits its portfolio:
1. Coffee is KDP’s Core Growth Engine
KDP’s 2025 State of Beverages report shows that coffee is the top daily ritual for U.S. consumers, with 52% reaching for it first thing.
Owning more well-known brands secures a category that consumers treat as essential, making it a reliable driver of daily sales.
2. KDP Finally Steps Beyond U.S. Pods
Keurig’s dominance has been in U.S. households through brewers and pods. But outside the U.S., its presence is thin.
JDE Peet’s operates in over 100 countries, giving KDP global scale and visibility in regions where Nestlé currently dominates.
3. Adds More Variety Across Price Points
KDP already thrives on variety with brands like Dr Pepper, Snapple, and La Colombe.
JDE Peet’s brings brands that cover both mainstream (Jacobs, Moccona) and premium (L’OR, Peet’s) markets.
This range allows KDP to capture different consumer budgets, from value shoppers to those seeking premium experiences.
4. Complements the Keurig Brewer System
The Keurig system depends on strong pod content. JDE Peet’s brands like Peet’s Coffee and L’OR are already part of the Keurig pod lineup.
Owning these brands ensures exclusive, long-term content for its brewers.
5. Scale Protects KDP From Coffee Price Shocks
Coffee beans are subject to price volatility due to climate, global supply, and tariffs.
A larger combined roasting and procurement base gives KDP the scale to negotiate better contracts, diversify sourcing, and protect against risks. This makes it less vulnerable to market shocks.
6. Unlocks Out-of-Home Channels
KDP’s strength is in retail distribution, but its coffee business has been mostly at-home.
JDE Peet’s is strong in cafés, offices, and restaurants, giving KDP entry into out-of-home channels.
Together, they cover the full range from a morning Keurig pod to a coffee shop latte.
7. Competitive Pressure from Rivals
The global coffee battle is heating up. Nestlé has Starbucks, Coca-Cola owns Costa, and both source heavily from top coffee-producing countries
With JDE Peet’s, KDP finally gains enough international scale to compete directly, positioning itself as the third big rival in a global coffee war.
8. Synergies in Distribution
KDP already runs 170 distribution centers across North America.
Adding JDE Peet’s coffee products to that network improves efficiency and gives the company a stronger ability to fill shelves quickly in the US, while JDE Peet’s European networks provide the same overseas advantage.
What Happens Next?
KDP has a long history of such deals. In 2018, it merged Keurig Green Mountain with Dr Pepper Snapple. In 2023, it invested nearly $1B in energy drink brand Ghost. Now it is moving to consolidate global coffee.
If the acquisition goes through, the next steps may include:
- Integration of coffee brands into the Keurig platform.
- Synergy plans in procurement and roasting.
- Evaluation of a corporate split—coffee vs. soda/other beverages.
Even if the talks fall apart, KDP has made one thing clear: coffee scale is central to its strategy.
As CEO Tim Cofer recently said in KDP’s trend report: “Consumers don’t just drink to hydrate—they drink to energize, indulge, connect, and feel comforted.”
Whether or not the Keurig Dr Pepper coffee deal closes, the direction is clear: coffee is not just part of KDP’s future, it is the future.
