JAB-Owned Keurig Merging with Dr Pepper Snapple Group

“Keurig Coffee Machine” by m01229. Licensed under CC-BY 2.0.

With a goal to “reach virtually every consumer everywhere,” United States beverage giants Keurig and Dr Pepper Snapple Group are merging to create Keurig Dr Pepper. The companies combined tallied more than $11 billion in revenue last year, and the deal affects more than 70 coffee brands directly owned or licensed by Keurig.

Keurig owner JAB Holding Company — the billionaire Reimann family-owned investment firm that has controlling stakes in other major U.S. coffee brands such as Peet’s Coffee and Caribou Coffee — will be the controlling shareholder following the merger, while U.S. beverage giant Mondelēz International will hold an approximately 13 to 14 percent stake, according to an announcement of the merger this morning.

“Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats,” Keurig CEO Bob Gamgort said in the announcement. “The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today’s consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere.”

While primarily known for its pod-based coffee brewing system, Keurig currently owns numerous prominent national and regional coffee brands, including Green Mountain Coffee Roasters, Donut Shop Coffee, Diedrich Coffee, Tully’s Coffee, and Hugh Jackman’s Laughing Man. In addition, the company maintains licensing agreements with dozens of other coffee brands for the Keurig system.