Keurig Dr Pepper (KDP) 2024 dbAccess Global Consumer Conference summary

Vision and Strategic Framework

• Positioned as a scaled challenger in the $300B North American beverage market, with over 125 brands and $15B net sales in 2023, aiming to provide a beverage for every need, anytime, anywhere.

• Evolved strategy centers on consumer-centric brand building, portfolio growth, international expansion, distribution strength, productivity, and dynamic capital allocation.

• Purpose "Drink Well. Do Good." guides environmental, supply chain, people, and health initiatives, with measurable goals and progress toward 2025+ targets.

• Culture emphasizes a challenger mindset, teamwork, speed, bold thinking, and innovation, with refreshed leadership energizing the next growth chapter.

• Corporate responsibility includes renewable energy, sustainable packaging, diversity, and responsible sourcing.

Segment Performance and Growth Drivers

• U.S. Refreshment Beverage: $9B segment, 7% sales CAGR, #1 in flavored CSDs and mixers, driven by market share gains, mix management, DSD expansion, and new platforms in high-growth categories.

• U.S. Coffee: $4B segment, 2% sales CAGR, #1 single-serve system, innovation in premium and RTD coffee, launching K-Brew+Chill, and expanding premium partnerships.

• International: $2B segment, 9% sales CAGR, doubled since merger, leading in Mexico and Canada, with strong share gains in mineral water, CSDs, and RTD alcohol.

• Growth platforms in sports hydration, premium water, and energy, with double-digit category growth and increasing market share.

• Investments in DSD, strategic acquisitions like Kalil Bottling, and new partnerships enhance reach and efficiency.

Financial Performance and Outlook

• Achieved 6% net sales CAGR and 11% EPS CAGR since merger, with 2023 net sales of $14.8B and adjusted operating income of $4B.

• Long-term algorithm targets mid-single-digit net sales growth, high single-digit EPS growth, and strong free cash flow.

• Productivity focus targets 3-4% annual gross productivity improvement and lean overhead structure to fund reinvestment and margin expansion.

• Capital allocation prioritizes internal investment, balanced with inorganic growth, partnerships, and shareholder returns, with a leverage target of 2.0-2.5x.

• 2024 guidance reaffirmed despite a mixed macro environment, with confidence in delivering on financial targets.