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Business, News, Food

Keurig merges with Dr. Pepper Snapple to create $11B beverage brand

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Daily Hive Staff Jan 29, 2018 7:22 am 771

Dr Pepper Snapple and Keurig announced in a press release today that the massive beverage brands have agreed to merge, creating a global thirst-quenching entity to be known as Keurig Dr Pepper – worth $11 billion in annual sales.

In a deal expected to close in the second quarter of 2018, Dr Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13% of the combined company.

The single-serving coffee maker and 75 Keurig brands, partners, and licensees, along with Green Mountain Coffee Roaster will be combined into a single portfolio of global beverage giants that now also includes Dr Pepper, 7UP, Snapple, A&W, Mott’s and Sunkist.

“Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats,” said
Bob Gamgort, Chief Executive Officer of Keurig. “The combination of Dr Pepper Snapple and Keurig will create a new scale beverage company which addresses today’s consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere.”

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Daily Hive Staff
Launched on June 1, 2016, Daily Hive is the evolution of Vancity Buzz and is now in Vancouver, Calgary, Toronto, and Montreal.

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