Keurig Dr Pepper (KDP) Barclays 19th Annual Global Consumer Conference summary

Strategic transformation and separation progress

• Integration of JDE Peet's completed on schedule, with immediate operational unification and synergy capture underway, targeting $400 million in synergies over three years.

• Preparation for the 2027 separation into two pure-play companies is on track, with leadership teams named and board formation progressing.

• Monetization of minority equity in Chobani and progress on disentanglement and new corporate identities support the separation.

• Early 2025 will feature an Investor Day and roadshow to communicate the new narratives.

• Interim operating structure with dedicated coffee and beverage units is enabling focus on both transformation and base business delivery.

Financial performance and outlook

• Full-year guidance reaffirmed: expected top-line of $25.9–$26.4 billion, with $8.5–$8.7 billion from JDE Peet's.

• Low double-digit constant currency EPS growth anticipated, with legacy business contributing 4–6% and JDE Peet's adding 6–7 points.

• Free cash flow forecasted at $2.5 billion, supporting de-leveraging efforts.

• Investments continue in both coffee and beverage businesses to drive long-term growth.

U.S. Refreshment Beverages (USRB) momentum

• USRB has delivered high single-digit to low double-digit growth in recent years, with continued confidence in mid-single-digit sales and high-single-digit EPS growth.

• Category tailwinds include consumer demand for new experiences, rational pricing, and strong portfolio positions in CSDs, energy, sports hydration, and premium water.

• Dr Pepper Zero Sugar is now the second largest zero sugar brand, growing at 30% in Q2.

• Portfolio expansion into energy and other growth categories has driven share gains.

• Strength in brand marketing, DSD execution, and entrepreneurial culture underpin ongoing momentum.