Bloomberg Intelligence Keurig Dr Pepper to Buy Peet’s Coffee Owner for $18 Billion in Revamp
6 snips
Aug 25, 2025 Keurig Dr Pepper's bold €15.7 billion acquisition of JDE Peet’s aims to rejuvenate its coffee segment amid declining soda consumption. The challenges of rising coffee prices due to poor crop yields are discussed, along with an increasing trend toward energy drinks. Puma's struggles against competitors like Nike and Adidas are highlighted, alongside a potential sale amid stock value declines. Apple gears up for a significant iPhone redesign, while a broadcasting merger navigates complex regulatory waters.
AI Snips
Chapters
Transcript
Episode notes
Strategic Two-Step Deal For Coffee
- Keurig Dr Pepper paired its weak Keurig coffee unit with JDE Peet’s to create a stronger standalone coffee company.
- The two-step deal aims to boost valuation and separate coffee from beverages as independent US-listed companies.
Scale From Global Coffee Leader
- JDE Peet’s is the world’s number-two coffee producer and pairs well with Keurig’s U.S. pod business to create scale.
- The combination offsets Keurig’s recent pod weakness and high green-coffee costs by adding global reach.
Cold Drinks Outperform Coffee
- Keurig’s cold beverage brands (Dr Pepper, Mott’s, Canada Dry) perform strongly thanks to national distribution and powerful branding.
- The coffee division lags due to higher green-coffee costs, tariffs, and weak at-home pod demand.