KDP buys Peet's coffee for $18B, splits into 2 companies
Keurig Dr Pepper (KDP) just announced it's buying JDE Peet's—the company behind Peet's Coffee and L'OR—for $18 billion in cash.
After the deal, KDP will break into two separate companies: one focused on global coffee, the other on classic drinks like Dr Pepper and energy sodas.
The move is all about letting each business grow in its own lane.
The split aims to save $400 million over 3 years
The new coffee company will go head-to-head with giants like Nestle and Starbucks, aiming for $16 billion in yearly sales.
Meanwhile, the beverage side sticks with favorites like Dr Pepper and plans to sharpen its focus on those brands.
The split is expected to save $400 million over three years once it wraps up in early 2026.
Sudhanshu Priyadarshi to lead the coffee business
Timothy Cofer will lead the beverage company from Texas, while Sudhanshu Priyadarshi takes charge of the coffee business from Massachusetts, with global operations out of Amsterdam.
As CEO Cofer puts it, this shake-up gives each team the freedom to chase growth where they know best.