Keurig Dr Pepper (KDP) Barclays 17th Annual Global Consumer Staples Conference summary

Consumer and market environment

• Observing a bifurcated consumer landscape: value-seeking low/mid-income shoppers and resilient premium consumers.

• Value channels like club and dollar stores are gaining traction, while instant consumption channels face pressure.

• Innovation and brand activation, such as Dr Pepper Creamy Coconut and Canada Dry Fruit Splash, are key growth drivers.

• Anticipates further top-line acceleration in the second half of 2024, building on strong first-half momentum.

• Committed to mid-single-digit top-line and high single-digit EPS growth for the year.

Consumer-centric strategy and productivity

• Emphasizing consumer-obsessed brand building using the Demand Spaces framework to map behaviors and drive insights.

• Consumer orientation informs innovation, M&A, and cost management, focusing on what consumers truly value.

• Productivity and cost efficiency are central, with a target of 3-4% gross productivity gains annually.

• Network optimization and SG&A discipline support reinvestment and margin expansion.

Segment performance and growth opportunities

• U.S. Refreshment Beverages, led by Dr Pepper, continue to gain share, with Dr Pepper now the #2 full-flavor CSD.

• Dr Pepper's growth is driven by distribution expansion, innovation (e.g., Creamy Coconut), and Dr Pepper Zero.

• Still beverages face macro-driven pressure, but brands like Bai, Core, and Mott's show early signs of improvement.

• Snapple remains a work in progress, with new programming and innovation planned for 2025.