Keurig Dr Pepper (KDP), one of the leading beverage companies in North America, officially announced the acquisition of the Dutch company JDE Peet’s in an all-cash transaction worth $18 billion, marking the largest European consumer goods acquisition in more than two years.

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The agreement not only transforms the operational scale of both companies but also sets a new paradigm in the global coffee market. Upon completion of the transaction, KDP plans a strategic separation that will result in two new independent companies listed on the U.S. stock exchange: Global Coffee Co., focused exclusively on coffee, and Beverage Co., centered on refreshment beverages in North America.

What does this acquisition represent?

Keurig Dr Pepper is positioning itself to compete directly with Nestlé in the coffee segment, thanks to the combination of its single-serve coffee system, Keurig®, with JDE Peet’s world-renowned brands such as Jacobs, Peet’s, L’OR, and Douwe Egberts.

The transaction, unanimously approved by the board of directors of JDE Peet’s, offers shareholders €31.85 per share, a 33% premium over the 90-day volume-weighted average price. The total equity valuation amounts to €15.7 billion, and it is expected to close during the first half of 2026.

“Today marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy to create two winning companies, including a new global coffee champion,” said Tim Cofer, CEO of KDP. “This is an exceptional opportunity to create a global coffee giant, and the timing is right: KDP is in a position of financial and operational strength.”

A dual strategy: subsequent separation

What is most notable about the agreement is that KDP will not absorb JDE Peet’s operations as a single entity. Instead, it will strategically split into two independent companies:

• Global Coffee Co., headquartered in Burlington (Massachusetts) with international offices in Amsterdam, will become one of the largest coffee companies in the world, with combined annual sales of $16 billion and presence in more than 100 countries.
• Beverage Co., operating from Frisco (Texas), will be an agile and fast-growing company in the North American refreshment beverage market, with sales exceeding $11 billion.

Both entities will have differentiated plans for capitalization, growth, and innovation, led by experienced executives: Tim Cofer will head Beverage Co., while Sudhanshu Priyadarshi will lead Global Coffee Co.

An opportunity in turbulent times

The deal comes in a context marked by trade tensions, tariffs, and adverse climate conditions. Coffee prices have reached record highs due to droughts in Brazil and Vietnam, the leading producers, and recent 50% tariffs imposed by the United States on coffee imported from Brazil.

These conditions are pushing companies to seek greater operational resilience and geographic diversification, goals that this merger fully meets.

“Combining the two coffee businesses makes sense, reducing the Europe-centric and commoditized nature of most of JDE Peet’s business, and giving Keurig international exposure,” said Jon Cox, an analyst at Kepler Cheuvreux.

In an interview with Reuters, Maxime Stranart, analyst at ING, said: “the new Coffee entity will be somewhat similar in size to Nestlé’s coffee business (…) Both would hold around 20% market share in the global packaged coffee and tea consumer goods market.”

Synergies and cost-saving opportunities

KDP expects that the integration with JDE Peet’s will generate operational synergies of approximately $400 million over three years, in addition to immediate earnings-per-share improvement starting in the first year.

Both companies will be capable of executing a strategy centered on rapid innovation, a robust global supply chain (with over 40 production plants), and local expertise to scale products in emerging markets.

“This highly complementary agreement will generate an attractive future of growth for our employees, customers, and other stakeholders,” said Rafa Oliveira, CEO of JDE Peet’s. “We are excited to join forces with Keurig to chart the future of global coffee, ushering in a new era of innovation and leadership.”

What changes for JDE Peet’s?

With this acquisition, JDE Peet’s will cease to be listed on the Amsterdam stock exchange, transforming its profile as an independent company. However, its nearly 300-year legacy and strength as a global coffee leader with widely recognized brands will remain the backbone of Global Coffee Co.

The German firm JAB Holdings, majority shareholder of JDE Peet’s, also holds a significant stake in KDP. Together with other institutional shareholders, they have already committed 69% of the voting power in favor of the transaction.

Global Coffee Co.: a pure-play coffee bet

The new Global Coffee Co. will be a 100% coffee-focused company, targeting a global market worth $400 billion, with an unmatched portfolio covering all consumer segments—from instant solutions to pod systems and premium coffee.

With leadership positions in more than 40 countries and a highly profitable structure, the company will have the scale, innovation, and cash flow necessary to deliver sustained growth, operational resilience, and competitive dividends.

Key assets include:

• Brands generating over $1 billion in sales, such as Keurig, Jacobs, Peet’s, and L’OR.
• Access to both emerging and mature markets.
• World-class supply chain and agile go-to-market strategy.

Beverage Co.: the North American challenger

Beverage Co., on the other hand, will leverage the success of KDP’s business model in the refreshment beverage sector with a build, buy & partner strategy that has enabled it to grow in segments such as energy drinks, functional beverages, and low-calorie options.

Its portfolio will include iconic brands such as:

• Dr Pepper, with sales exceeding $5 billion.
• Canada Dry, 7UP, A&W.
• More than $3 billion in high-growth categories like energy and wellness.
• Leading positions in Mexico with Peñafiel®, and in Canada in ready-to-drink and non-alcoholic alternative beverages.

The company also has a direct store delivery (DSD) network in the United States and Mexico, representing a key competitive advantage.

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