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Drinks giant Keurig Dr Pepper is close to a deal to acquire European coffee company JDE Peet’s for about $18 billion (€15bn), according to the Wall Street Journal.
The purchase could lead to a break-up of the firms’ coffee and soft-drinks units, dismantling the 2018 merger that united Keurig and Dr Pepper.
A deal could be announced as soon as Monday, although representatives for both firms did not immediately respond to Euronews’ requests for comment.
JDE Peet’s, a Dutch firm that owns brands including Peet’s Coffee and Kenco, had a market value of $15bn (€13bn) according to Friday’s closing price. Keurig Dr Pepper, owner of brands like Schweppes, 7UP, and Dr Pepper, had a market value of $47bn (€40bn).
Keurig Dr Pepper shares have risen more than 10% this year, buoyed by strong drink demand, with US sales growing by almost 11% from a year earlier to $2.7bn (€2.3bn).
Even so, the firm’s coffee sales have underperformed due to fierce competition, and CEO Tim Cofer recently warned that US tariffs on coffee bean imports would hit margins.
On 6 August, US President Donald Trump notably placed a 50% duty on coffee beans imported from Brazil.
In July, Keurig Dr Pepper said that its coffee unit would see “subdued” performance for the rest of fiscal 2025, a trend partially linked to inflation and tariffs.
While a tie-up between the two firms remains on the cards, the two companies already share common ownership. JAB Holdings, a German investment firm, retains a significant minority stake in Keurig Dr Pepper, while also holding majority control of voting power at JDE Peet’s.
