M&A News: Keurig Dr Pepper Nears $18B Acquisition of Dutch Coffee Giant JDE Peet’s

Soda beverage company Keurig Dr Pepper (KDP) is nearing an $18 billion deal to acquire Dutch coffee giant JDE Peet’s (DE:JDE), the Wall Street Journal reported, citing sources. It is worth noting that Europe-based investment firm JAB Holding has majority control of voting power at JDE Peet’s and also owns a stake in Keurig Dr Pepper. Sources cautioned that there are no guarantees that a deal will be finalized.

A Deal Brewing Between Keurig Dr Pepper and JDE Peet’s 

Keurig Dr Pepper, which owns brands like Schweppes, 7UP, and Canada Dry, has a market cap of nearly $48 billion, while JDE Peet’s has a market value of about 12.8 billion euros (or $15 billion). The combined company will later separate the beverage and coffee businesses, undoing the 2018 merger that combined Keurig and Dr Pepper.

Through this deal, Keurig Dr Pepper intends to boost its coffee business, which has been struggling due to intense competition and the impact of tariffs. In Q2 2025, Keurig Dr Pepper reported a 0.2% decline in its U.S. coffee sales, as increased prices to combat inflation were offset by a decline in pod and brewer shipments. The company cautioned that it expects its coffee business to be subdued for the balance of this year, partly due to inflation and tariffs.

In contrast, KDP reported a 10.5% rise in its U.S. refreshment beverages business, supported by market share gains in carbonated soft drinks, energy, and sports hydration, and the acquisition of energy drinks maker Ghost.

Is KDP a Good Stock to Buy?

Wall Street is currently bullish on Keurig Dr Pepper stock due to the strength in its U.S. refreshment beverages business. With nine Buys and three Holds, Wall Street has a Strong Buy consensus rating on Keurig Dr Pepper stock. The average KDP stock price target of $39.18 indicates 11.5% upside potential from current levels. KDP stock has risen more than 9% year-to-date.

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