Coffee continues to be a strong performer for Keurig Dr Pepper (KDP), with e-commerce sales and retail coffee sales offsetting losses across out-of-home channels due to the pandemic
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Announcing its first quarter results for the 13 weeks to 28 March 2021, the JAB Holdings-controlled coffee and soft beverages company reported net sales increased 17.4% to $1.14bn compared to $970m during the same period in 2020.
In coffee, retail consumption of single-serve pods manufactured by KDP in IRi tracked channels increased 3.9%, while its dollar market share increased to 83%.
KDP also reported that e-commerce channels had ‘more than offset’ sales declines in out-of-home, office, and hospitality businesses, while retail consumption of single-serve pods increased 11%.
Commenting on the results, KDP Chairman and CEO Bob Gamgort said, “We delivered an exceptional first quarter, driving double-digit net sales and earnings growth, behind outstanding in-market execution. Looking forward, we see an improving, but volatile, macro environment marked by increasing consumer mobility and rising inflationary headwinds.”
Keurig Dr Pepper was
formed in 2018 after JAB Holding Company acquired US soft drinks manufacturer and distributor, Dr Pepper Snapple, and merged it with its Keurig Green Mountain coffee business in a deal worth $18.7bn.
It controls a portfolio of more than 125 owned, licensed, partner and allied brands, including prominent US coffee chains, Krispy Kream, Panera Bread, Cinnabon, Caribou Coffee, Tully’s Coffee and Gloria Jeans Coffee. KDP’s retail coffee brands include Green Mountain Coffee Roasters, Van Houte and Diedrich Coffee.
In May 2021,
Krispy Kreme confidentially filed for an IPO, a move that could return the coffee and bakery chain to the stock market after a five-year absence.