Mon, 25 Aug 2025

Mon, 25 Aug 2025 Keurig Dr Pepper buy coffee chain for £13bn

Two of the world's biggest coffee firms are to combine as the industry grapples with tariffs and high prices for beans.
Keurig Dr Pepper has agreed to acquire Dutch coffee firm JDE Peet's in an €15.7 billion deal, making it the largest European acquisition in over two years. The merged company plans to split into two US-listed firms: one focused on coffee brands like Douwe Egberts and L'Or, and the other on soft drinks such as Schweppes, Snapple, and 7 Up. The executives behind the deal aim to create a "global coffee champion" by combining JDE Peet's portfolio with Keurig Dr Pepper's distribution network. The new merged coffee company will be based in Massachusetts and boast brands worth $16 billion in annual sales. However, shares in Keurig Dr Pepper have fallen over 7% since the deal was announced, sparking concerns that the company is abandoning its original strategy of combining its soda business with Green Mountain Coffee. Keurig Dr Pepper's coffee growth is expected to remain "subdued" this year due to tariffs and high prices for coffee beans. The deal values JDE Peet's shares at €31.85 each, a 20% increase from their pre-deal price but still below their peak in 2020. The acquisition will benefit JAB Holding Co, the investment firm owned by the German Reimann family, which owns nearly 70% of JDE Peet's voting power and about 4% of Keurig Dr Pepper.
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