Keurig Dr Pepper (KDP.US) announces a $18 billion acquisition of the European coffee company JDE Peet's.

According to an informed source, Keurig Dr Pepper (KDP.US) is set to finalize a deal to acquire European coffee company JDE Peet's NV, with a transaction amount of approximately $18 billion. The company is working to boost its struggling coffee business. The source stated that the relevant agreement could be announced as soon as Monday. It is reported that the merged company will later split its beverage and coffee businesses. JDE Peet's NV has a market value of approximately $15 billion, while Keurig Dr Pepper (owner of brands such as Sprite, 7UP, and Canada Dry) has a market value close to $50 billion. Keurig Dr Pepper's coffee sales in the US remained relatively stable in the second quarter, with price increases in K-Cups offset by a decrease in shipments of single-brew coffee packs and coffee machines. The company stated in July that it expects its coffee business to underperform for the remaining time in 2025, partly due to the impact of inflation and tariffs. Kenneth Shea, a senior consumer goods analyst at Bloomberg Intelligence, wrote in a post-earnings outlook report, "Sales and profits in the US coffee sector have been impacted by price increases to address higher costs of green coffee, a situation we believe may have a negative impact on this business segment for the remainder of the year." Meanwhile, JDE Peet's NV's organic revenue exceeded expectations in the first half of the year, leading to an upward revision of its full-year performance outlook. Newly appointed CEO Rafael Oliveira has implemented a comprehensive restructuring strategy for this coffee producer listed in Amsterdam, aiming to drive profit growth in the face of squeezed profit margins due to recent increases in green coffee prices. JDE Peet's company stated in July that from 2026 to 2027, its gross profit margin is expected to grow by 1% to 3%, with adjusted EBIT achieving an annual growth rate of 3% to 4%. The company is pursuing a brand-centric strategy focusing on its "three big bets," including Peet's and L'OR.