Keurig Dr Pepper (KDP) investor relations material

Strategic overview and recent developments

• Announced separation into two focused companies—Beverage Co. and Global Coffee Co.—targeted for early 2027, following the acquisition of JDE Peet's in April 2026.

• KDP has become a global beverage leader with $28 billion in annual sales, with two-thirds of business in North America, 20% in Europe, and 15% in other international markets.

• The beverage market is valued at $1.4 trillion globally, growing at a mid-single-digit rate, with strong structural tailwinds and premiumization trends.

• Both entities will have independent boards, investment-grade capital structures, and experienced leadership appointed for each business.

• The separation aims to unlock value by creating pure-play leaders in North American beverages and global coffee.

Beverage Co. investment case and growth drivers

• Beverage Co. operates in the $300 billion North American cold beverage market, holding leadership in carbonated soft drinks, energy, waters, tea, and juices.

• Portfolio includes over 50 brands, such as Dr Pepper, Canada Dry, Snapple, and Mott's, each exceeding $1 billion in retail sales.

• Dr Pepper has gained market share for nine consecutive years, especially among Gen Z and in zero sugar offerings, using precision marketing and innovation.

• Energy and sports drinks are a key growth area, with market share rising from near zero to over 8% between 2021 and Q1 2026.

• Enhanced marketing, AI-driven personalization, and a national direct store delivery system covering ~80% of the U.S. population drive superior execution and growth.

Global Coffee Co. investment case and synergies

• Coffee is a $400 billion global category with over 3 billion cups consumed daily and 97% U.S. household penetration.

• Global Coffee Co. has $16 billion in annual net sales, $3 billion in adjusted EBITDA, and nearly 20% margins, ranking as the world's number two coffee player, holding #1 or #2 positions in 35+ markets.

• The combination of Keurig and JDE Peet's brings together leading brands and technology, with opportunities for revenue synergies and expanded distribution across formats and geographies.

• Launch of Keurig Alta in late 2026 will offer a plastic- and aluminum-free consumable and broaden brand participation.

• $400 million in cost synergies targeted over three years, incremental to JDE Peet's existing cost savings program.