Keurig Dr Pepper Brews Up $18B Blockbuster Deal for JDE Peet’s - Largest Coffee Merger in History

Java giants collide in seismic industry shakeup.

Keurig Dr Pepper just served Wall Street a scalding hot shot of M&A news—the beverage titan is finalizing an $18 billion acquisition of Dutch coffee empire JDE Peet’s. This isn’t just a corporate handshake; it’s a full-blown caffeine arms race hitting boiling point.

Market Domination in Every Cup

The merger creates an unprecedented portfolio spanning single-serve pods, premium beans, and ready-to-drink lines—cornering the global coffee market from supermarket aisles to office breakrooms. Suddenly, that morning brew looks a lot more strategic.

Regulatory Hurdles Ahead

Antitrust watchdogs are already sharpening their pencils. Combining two supply chain behemoths means navigating thorny competition concerns—because nothing says 'free market' like controlling 40% of Western coffee distribution.

Investors Get Caffeine Jitters

Shares swung wildly on the news—traders clearly needed extra espresso to digest the premium price tag. At $18 billion, we’re either witnessing visionary consolidation or the peak of corporate empire-building. Because if there’s one thing finance loves more than complex derivatives, it’s overpaying for predictable revenue streams.

Bottom line: This deal either redefines global beverage landscapes or becomes a case study in merger indigestion. Either way—the coffee keeps flowing.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

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.