Keurig Dr Pepper Aims to Revive Coffee Sales with Value Focus

Keurig Dr Pepper Aims to Revive Coffee Sales with Value Focus

Keurig Dr Pepper (KDP) is addressing declining U.S. coffee sales by emphasizing affordability and value in its marketing efforts. In the first quarter of 2023, the company's U.S. coffee division saw a 2.1% decrease in net sales, following a significant drop in the previous quarter. CEO Tim Cofer highlighted increased marketing investments aimed at reinforcing the value of KDP's coffee pod business and targeting higher-income consumers who are actively growing sales within the Keurig ecosystem. The company plans to introduce a new value-centric marketing campaign and launch products like the ‘Brew + Chill’ brewer to attract more consumers, especially in the away-from-home segment. Despite the challenges, KDP reported a 3.4% increase in overall net sales, with significant growth in its U.S. Refreshment and International divisions.

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