Keurig Dr Pepper lifts annual sales forecast, raises $7 billion for JDE Peet's deal

(Reuters) -Keurig Dr Pepper raised its forecast for annual sales on Monday, banking on resilient demand for its energy drinks and carbonated soft beverages in markets including the United States, sending its shares up about 6% in premarket trading. The beverage maker, which announced plans in August to buy coffee giant JDE Peet's for about $18 billion, said on Monday it had raised about $7 billion from Apollo and KKR to reduce the debt burden when the deal closes. As part of the deal, JDE Peet's will split into two independent entities called Beverage Co and Global Coffee Co by the end of 2026, and $4 billion of the investment from Apollo and KKR will go into a new K-Cup pod and single-serve manufacturing joint venture, Keurig said. KKR and Apollo will also invest the remaining amount in the company and the eventual Beverage Co through convertible preferred stock. The deal with Peet's comes as the global trade war intensifies corporate action in the consumer goods sector, allowing the new entities to better fare against rising U.S. tariffs against coffee-producing nations and other trade rivals. The company also now expects 2025 full-year net sales to grow in a high-single-digit, up from its earlier mid-single-digit range, while keeping its profit forecast unchanged. "Strong innovation and in-market execution drove market share gains across key categories, with sales momentum, along with disciplined actions to offset inflationary pressures, contributing to solid earnings and free cash flow growth," CEO Tim Cofer said. Its adjusted profit of 54 cents per share came in line with Wall Street estimates. (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)