NEW YORK — In a landmark move for the beverage industry, Keurig Dr Pepper announced it will acquire JDE Peet’s, the Amsterdam-based owner of Peet’s Coffee, in a deal valued at $18 billion (€15.7 billion).

The transaction is expected to reshape the global coffee market while also leading to a major corporate restructuring.

Deal Structure: Coffee and Beverages to Split

Once the acquisition is finalized, Keurig Dr Pepper plans to divide into two independent companies:

  • Coffee Business → ~$16 billion in combined annual sales.

  • Beverage Business → ~$11 billion in annual sales, including household brands like Dr Pepper, Canada Dry, 7Up, and a portfolio of energy drinks.

“This combination seizes an exceptional opportunity to create a global coffee giant,” said Tim Cofer, Keurig Dr Pepper’s CEO.

JDE Peet’s Global Coffee Brands

Beyond Peet’s Coffee, JDE Peet’s manages some of the world’s most recognizable coffee labels, including:

  • L’OR

  • Jacobs

  • Douwe Egberts

  • Kenco

  • Pilao

  • OldTown

  • Super

  • Moccona

The addition of these brands positions the merged company as a dominant global player in both retail and premium coffee markets.

Leadership After the Split

  • Tim Cofer will lead the beverage-focused company, headquartered in Frisco, Texas.

  • Sudhanshu Priyadarshi, current CFO of Keurig Dr Pepper, will serve as CEO of the coffee company, headquartered in Burlington, Massachusetts, with its international base in Amsterdam.

This structure reflects a strategic effort to give each business the flexibility to scale independently.

Industry Impact

The deal underscores the consolidation trend in global food and beverage markets, as companies look to strengthen scale and respond to shifting consumer demand. With coffee consumption rising worldwide and competition intensifying in the soft drink and energy drink categories, analysts expect the split to allow both divisions to compete more effectively in their respective markets.

Industry experts say the merger could rival giants like Nestlé in the coffee segment, while the beverage company will continue to challenge Coca-Cola and PepsiCo in North America.

FAQ

What is the value of the Keurig Dr Pepper JDE Peet’s deal?
The acquisition is worth about $18 billion (€15.7 billion).

What will happen after the acquisition?
Keurig Dr Pepper will split into two companies: one dedicated to coffee, the other to beverages.

Who will lead the new companies?
Tim Cofer will head the beverage business, while Sudhanshu Priyadarshi will lead the coffee division.

SOURCE: AP News.