Massachusetts-based Keurig Dr Pepper is set to acquire JDE Peet's, a major coffee player, in a deal valued at $18 billion. This merger aims to create a new global coffee powerhouse named Global Coffee Co., while also spinning off non-coffee beverages into a separate company. The merger is expected to reshape the coffee industry significantly.
• Keurig will pay JDE Peet's shareholders 31.85 euros per share, a 33% premium.
• Global Coffee Co. will be based in Burlington, Massachusetts, with an international office in Amsterdam.
• The new coffee entity is projected to generate over $16 billion in annual sales.
• Beverage Co. will retain popular non-coffee brands and is expected to reach over $11 billion in sales.
This merger is crucial as it consolidates major coffee brands under one roof, enhancing competition and innovation in the coffee market. It reflects a trend of consolidation in the beverage industry, which could lead to better products and services for consumers.
Enjoying the read? Subscribe for free to one of the fastest-growing newsletters and get weekly coffee news (TL;DR updates) delivered right to your inbox.