Summary
Keurig Dr Pepper plans to separate back into two companies a few years after their merger. They are buying the company that owns Peet's Coffee for $18 billion and will divide into one company for coffee and another for cold drinks. Each new company aims to focus better on its specific market.
Key Facts
- Keurig Dr Pepper plans to split into two separate companies.
- They are buying the owner of Peet’s Coffee for $18 billion.
- The coffee company will include brands like L'OR and Jacobs and will focus more globally.
- The cold beverage company will include drinks like Dr Pepper, Snapple, and energy drinks.
- Shares of Keurig Dr Pepper fell by 7% after the announcement.
- The coffee business aims to generate $16 billion in annual sales.
- The split expects to save around $400 million over three years.
- The plan hopes to complete the separation by the first half of 2026.
