Keurig Dr Pepper (KDP) is brewing up changes again. The company behind both morning coffee pods and afternoon sodas announced it’s acquiring JDE Peet’s and plans to split into two independent businesses. It’s a brave move that changes the way KDP does business in two very different markets: coffee and soft drinks. It could also change what you drink.
Background: From Merger to Mega-Brand
KDP was formed in 2018 when Keurig Green Mountain and Dr Pepper Snapple Group merged. This brought together the convenience of making coffee at home with classic soft drinks. Since then, KDP has quietly become a major player in both areas. KDP now has an even bigger global presence in premium coffee thanks to its purchase of JDE Peet’s, which includes brands like Peet’s Coffee, Douwe Egberts, and L’Or. To sum up, it’s growing from single-serve pods into a global coffee network.
The Split: Two ‘Winning Companies’
By the end of 2026, KDP wants to split into two separate businesses.
- Global Coffee Co. will bring together Peet’s, Keurig machines, and a new line called the Keurig Coffee Collective. This line will have pods with 30% more coffee per cup.
- Beverage Co. will continue Dr Pepper Snapple Group’s portfolio of classic soft drink brands like Dr Pepper and 7UP.
While KDP looks for a new CEO for Global Coffee Co., Beverage Co. will be run by CEO Tim Cofer. KDP leaders say that the goal is to give each division clearer direction. Growth strategies for coffee look different compared to strategies for soft drinks, so it makes sense to have different leadership teams.
What It Means for Consumers
The merger and split may seem contradictory, but they’re part of the same plan: to specialize. By adding Peet’s to the Keurig family, the company can offer more high-end options and grow its European-style café presence in the U.S. The new Keurig Coffee Collective wants to keep the convenience that made single-serve brewing so popular while making the coffee taste better and the packaging look better.
Dr Pepper’s marketing machine will keep going strong for soda drinkers. KDP’s beverage division keeps growing thanks to new data-driven campaigns and even AI-powered personalization that shows people ads and promotions that are relevant to their interests, like college football-themed ads or custom promotions.
A Look Ahead
By splitting up, KDP bets that focus beats scale. Coffee Co. can focus even more on coming up with new products and expanding around the world, while Beverage Co. works on improving its marketing and brand-building strategies.
For consumers, that means better coffee, better branding, and maybe a stronger morning brew to go with an afternoon fizz.
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