Keurig Dr Pepper (KDP) is acquiring coffee conglomerate JDE Peet’s in a transaction valued at approximately $18 billion, with plans to form the world’s largest pure-play coffee company.
Following the acquisition’s completion, KDP plans to separate into two independent publicly traded companies through a tax-free spin-off. The coffee-focused company will be called Global Coffee Co.
The transaction combines two of the coffee industry’s largest players, each with significant holdings in traditional direct-to-consumer coffee brands and specialty coffee brands, and combined market reach in more than 100 countries.
KDP, which dominates North America’s single-serve coffee market through its Keurig platform, is also the owner of La Colombe Coffee plus coffee trading and logistics branches. Meanwhile, JDE Peet’s owns numerous major European and North American coffee brands, including Peet’s Coffee and its subsidiaries, Stumptown Coffee Roasters and Intelligentsia Coffee. The company also owns Caribou Coffee’s roasting and packaged coffee business.
Global Market Control
Following the deal Global Coffee Co. is expected to generate approximately $16 billion in annual net sales, according to an announcement from the companies.
According to a DCN analysis of recently published marketing and shareholder materials from KDP and JDE Peet’s, the combined company would control more than 50 coffee brands in the categories of soluble (instant), single serve (pods, capsules), traditional ground and whole bean, and high-end specialty, plus some trading and logistics entities.
According to the companies, Global Coffee Co. would occupy the number one or number two market position in coffee sales in approximately 40 countries.
The second spin-off in the deal, called Beverage Co., will be focused on other beverage types, such as sodas, juices and energy drinks. The company is expected to generate $11 billion in annual sales, according to KDP.
The global headquarters for Global Coffee Co. will be in Burlington, Massachusetts, and its international headquarters will be in Amsterdam. Beverage Co. will be headquartered in Frisco, Texas.
Until the separation is complete, the combined company will be led by KDP CEO Tim Cofer and CFO Sudhanshu Priyadarshi. After the spin, Cofer is slated to lead Beverage Co., while Priyadarshi is set to become CEO of Global Coffee Co. Additional leadership and board appointments will be announced later.
How We Got Here
The largest act of consolidation in the history of the coffee industry (in financial terms) is the latest chapter in a dizzying series of events over the past 15 years involving names such as Green Mountain Coffee Roasters, Keurig, Peet’s Coffee, Jacob Douwe Egberts, Mondeléz International and many others.
Many of these events have been shaped in some part by the hands of Europe’s JAB Holding Company or its affiliates, controlled by the German billionaire Reimann Family.
The former Green Mountain Coffee acquired single-serve startup Keurig in 2006, later changing its name to Keurig Green Mountain. In December 2015, a JAB-led group took Keurig Green Mountain private for approximately $13.9 billion. Three years later, Keurig merged with Dr Pepper Snapple Group to form Keurig Dr Pepper, with JAB holding a large stake.
In 2024 and 2025, JAB reduced its KDP stake through secondary offerings — disclosing ownership of approximately 16.5% after the October 2024 sale and approximately 10.7% after the February 2025 sale — while retaining control of JDE Peet’s through an affiliate, Acorn Holdings B.V.
That brings us to today, where KDP is acquiring JDE Peet’s, with Acorn and insiders agreeing to tender shares representing 69% of JDE Peet’s voting power.
In an announcement today, KDP CEO Cofer said, “Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion.”
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Nick Brown
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
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