Consumer stockpiling and a slow return to workplaces contributed to sluggish coffee performance, Keurig Dr Pepper says – but out-of-home coffee channels ‘improving’
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The JAB Holdings-controlled business reported second quarter revenues of $3.14bn, a
9.6% increase on the same period in 2020. Year-to-date revenues rose 10.3% to $6.04bn.
Sales of Kuerig Dr Pepper (KDP) soft beverages products, which include the Canada Dry, Sunkist, Dr Pepper and 7UP brands, rose 7.6% to $1.05bn over the period, while its concentrates business achieved 21.4% sales growth to $375m, due to ‘higher levels of consumer mobility in the restaurant and hospitality channels’, the company reported.
KDP-manufactured retail coffee pod sales, however, declined 1.2% compared to the same period in 2020, with the Texas-headquartered company attributing the fall to consumer stockpiling due to the pandemic. Sales of coffee pod systems growth also remained flat at 0.2%, the company stated.
Across its coffee systems business, KDP reported net sales of $1.1bn in the second quarter, a 5.6% increase on the $1.04bn earned in the same period in 2020. ‘Strong’ retail consumption was reflected in brewer volume growth of 29%, but KDP added that workers returning to offices continued to be ‘slow’.
“KDP delivered another strong quarter, as we successfully navigated a challenging macro environment marked by inflation, supply chain disruptions and a tight labor market. For the first six months of 2021, we delivered 9% revenue growth and nearly 15% Adjusted diluted EPS growth,” said KDP Chairman and CEO Bob Gamgort
“Notwithstanding the expectation for ongoing challenges to persist for some time, we are confident in our strengthened top-line outlook and plan to reinvest any profit upside back into the business. In addition, our commitment to achieve our three-year merger targets ending this year remains unchanged," Gamgort added.