Feb 24 (Reuters) – Keurig Dr Pepper forecast strong annual results after beating quarterly earnings estimates on Tuesday, betting on its new flavors and marketing efforts to drive demand for its carbonated beverages and energy drinks.
The U.S. beverage maker saw resilient demand during the quarter and gained market share on the back of its popular soft drinks including 7UP as well as Dr Pepper Zero.
Keurig has been introducing fresh flavors such as Dr Pepper Creamy Coconut and refreshers based on TikTok trends, helping it attract more consumers. Quarterly sales in Keurig’s domestic refreshment beverages segment – its largest revenue generator – jumped 11.5%, while its coffee business rose 3.9%, compared with a year ago. The company has been sequentially raising prices to counter the impact from costs related to coffee and tariffs. Shares of Keurig were up about 2% in premarket trading.
It also named Pamela Patsley as chair of the board. Patsley, who has been on Keurig’s board since 2018, will be transitioning into the role at the end of the first quarter of 2026.
The company has also been banking on its soon-to-be-closed acquisition of Dutch coffee and tea group JDE Peet’s, to increase its appeal with younger consumers.
On Monday, Keurig raised an additional $1.5 billion of equity funding from long-term investors as a part of its financing plan for the roughly $18 billion takeover of JDE Peet’s. Keurig expects annual net sales to be in the range of $25.9 billion to $26.4 billion, compared with analysts’ estimates of $17.23 billion, per data compiled by LSEG. The ready-to-drink tea maker expects annual adjusted profit to grow in the low-double-digit range on a constant currency basis, above estimates of a 6.4% rise. For the fourth quarter, the company posted net sales of $4.50 billion, beating estimates of $4.36 billion. It logged adjusted profit of 60 cents per share, edging past estimates of 59 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath)
