Keurig Dr Pepper is set to become two separate companies after buying the parent of Peet’s Coffee for $18 billion. The merger will unwind the 2018 combination of Keurig and Dr Pepper, with one company focusing on coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP, and energy drinks.
The deal is expected to close in the first half of 2026 and is intended to make each stand-alone entity more agile and focused on growth opportunities. The combined coffee business will generate $16 billion in annual net sales, allowing Keurig to compete with major players like Nestle and Starbucks.
As part of the separation, Keurig’s CEO Timothy Cofer will lead the cold beverage business, while Sudhanshu Priyadarshi will oversee the coffee business. The companies expect to save around $400 million over three years due to the merger.
The move comes as the food and beverage industry adapts to changing consumer tastes, with several recent mergers and acquisitions aimed at responding to shifting preferences.
Source: https://www.npr.org/2025/08/25/g-s1-85104/dr-pepper-keurig-peets-purchase-merger-split