Keurig Dr Pepper (KDP) Morgan Stanley Global Consumer & Retail Conference summary

Strategic direction and portfolio evolution

• Focused on consumer-obsessed brand building, route-to-market expansion, and portfolio shaping, highlighted by the Ghost acquisition and continued innovation across beverage categories.

• Energy drinks identified as a high-growth category, with a portfolio approach including C4, Ghost, Bloom, and Black Rifle, aiming for double-digit market share.

• Flexible deal structures balance capital efficiency and brand ownership, with 60% upfront acquisition of Ghost and the remainder in three years.

• Portfolio shaping supports mid-single-digit top-line and high single-digit earnings growth, leveraging diverse segments and selective partnerships.

• DSD network investments and new partnerships like Electrolit and La Colombe drive national scale and fill white space opportunities.

2025 outlook and growth drivers

• 2025 expected to see accelerated top-line growth, with Ghost contributing incremental revenue and continued momentum in U.S. refreshment beverages and international segments.

• SKU rationalization and productivity initiatives will support growth and margin expansion.

• Balanced planning for coffee, with cautious optimism for category recovery and prudent pricing strategies to offset green coffee inflation.

• Official guidance for 2025 to be provided in February, with current outlook aligned to long-term growth algorithm.

Category performance and innovation

• U.S. refreshment beverages grew 4.5% through Q3 2024, with CSDs outperforming expectations and Dr Pepper achieving its eighth consecutive year of share growth.

• Innovations like Canada Dry Fruit Splash and 7UP Shirley Temple contributed to share gains; Snapple set for revitalization in 2025.

• Partnership brands C4 and Electrolit have doubled distribution and display activity, with Electrolit poised for further growth following new manufacturing investments.