Dr Pepper and Keurig Announce Separation

## Overview Dr Pepper is one of America’s most iconic beverage brands, currently owned and operated by Keurig Dr Pepper Inc. (KDP), a leading North American beverage company with a diverse portfolio of over 125 owned, licensed, and partner brands[2]. The company is recognized for its innovation in both coffee and refreshment beverages, holding a dominant position in the U.S. single-serve coffee market and a strong presence in carbonated soft drinks, teas, waters, juices, and mixers[1][2]. KDP’s hybrid business model combines direct-to-consumer channels (notably through Keurig.com) with traditional retail distribution, ensuring broad availability in supermarkets, convenience stores, and online platforms[1]. ## History Dr Pepper’s origins date back to 1885 in Waco, Texas, making it one of the oldest major soft drink brands in the United States. Over the decades, Dr Pepper became synonymous with unique flavor profiles and bold marketing. The brand’s parent company, Keurig Dr Pepper, was formed in 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple Group, creating a beverage powerhouse with extensive manufacturing, bottling, and distribution capabilities[6]. ## Key Achievements KDP’s achievements include consistent revenue growth, reaching over $15 billion in annual sales[1][2], and maintaining leadership in both the coffee and carbonated soft drink segments. The company has successfully expanded its product lines through strategic partnerships, such as the recent $7 billion investment to acquire JDE Peet’s and establish a new K-Cup pod manufacturing joint venture[3]. These moves underscore KDP’s commitment to innovation and category expansion, particularly in premium coffee and ready-to-drink beverages. ## Current Status and Notable Aspects As of late 2025, Keurig Dr Pepper has raised its full-year sales growth forecast to high single digits, reflecting strong performance in its

Keurig is a pioneering company in the coffee industry, renowned for its innovative single-serve coffee brewing technology. Founded in 1992 by John Sylvan and Peter Dragone, Keurig aimed to revolutionize the way people brew coffee by offering consistent, high-quality single servings[2][5]. Initially, the company faced numerous challenges, including repeated prototype failures and securing funding. However, with key investments, they were able to launch their first brewing system in 1998, primarily targeting office environments[5][8]. A significant turning point came when Green Mountain Coffee Roasters (GMCR) invested in Keurig, developing the K-Cup system. This collaboration led to the introduction of K-Cups with Green Mountain Coffee, allowing consumers to enjoy premium coffee at home and in offices[8]. By 2006, GMCR acquired full ownership of Keurig, further expanding its reach by partnering with brands like Starbucks and Dunkin' Donuts[4][6]. In 2018, Keurig Green Mountain merged with Dr. Pepper Snapple Group, forming Keurig Dr Pepper. This merger positioned the company to expand beyond coffee, offering a broader range of beverages using the K-Cup technology[4][7]. Today, Keurig Dr Pepper is a leading beverage company, leveraging its innovative brewing system to deliver a variety of drinks efficiently. Keurig's impact on the coffee industry has been profound, shifting consumer behavior towards single-serve brewing. The company's success is attributed to its ability to adapt and innovate, making it a notable player in both the business and technology sectors. The K-Cup model, while criticized for environmental concerns, remains a dominant force in the market, with Keurig Dr Pepper continuing to evolve and expand its offerings[3][4].

**Introduction to Peet's Coffee** Peet's Coffee is a renowned specialty coffee roaster and retailer based in the San Francisco Bay Area. Founded in 1966 by Alfred Peet, a Dutch immigrant, it revolutionized the U.S. coffee industry by introducing darker roasted Arabica coffee beans and European roasting techniques to the American market[1][4]. Peet's is often credited with sparking the specialty coffee movement, which has had a profound impact on how Americans consume coffee. **History and Key Achievements** Alfred Peet opened his first store in Berkeley, California, near the University of California campus. Initially, the store sold whole coffee beans for home brewing, emphasizing freshness and quality[2][3]. In the early years, Peet trained the founders of Starbucks, including Jerry Baldwin, who later bought Peet's locations and played a significant role in its expansion[1][4]. One of Peet's most notable blends is Major Dickason's Blend, created in collaboration with Key Dickason[1]. **Current Status** Today, Peet's is part of JDE Peet's, the world's largest pure-play coffee and tea company, with operations in over 100 markets globally[7]. Peet's has expanded significantly since its inception, acquiring brands like Mighty Leaf Tea, Stumptown Coffee Roasters, and Intelligentsia Coffee[1][3]. Despite its growth, Peet's remains committed to its core values of quality and freshness. **Notable Aspects** Peet's is known for its loyal customer base, often referred to as "Peetniks," who appreciate its bold flavors and artisanal roasting methods[6]. The company continues to innovate while maintaining its heritage as a pioneer in the specialty coffee industry. Peet's acquisition by JAB Holding in 2012 marked a significant milestone in its expansion strategy[3]. Currently, Peet's operates several hundred coffee bars and is recognized as a leader