KDP cited coffee sales as strong contributor to its $3.62bn third quarter revenues, despite supply chain disruption hindering operations earlier this year
Net sales of Keurig Dr Pepper’s commercial coffee systems in the quarter increased 5% to $1.2bn | Photo credit: Keurig
Texas-based Keurig Dr Pepper has seen sales of its single-serve coffee pods and commercial coffee systems rise in the third quarter of 2022.
Reporting its results for the period ending 30 September 2022, the JAB Holdings-controlled coffee and soft beverages company reported overall net sales increasing 11.4% to reach $3.62bn, compared to $3.25bn during the same period in 2021.
In coffee, retail consumption of single-serve pods manufactured by Keurig Dr Pepper in IRi tracked channels increased 4%, while its dollar market share remained at 82%. The company said it registered stronger growth in untracked channels.
Net sales of Keurig Dr Pepper’s commercial coffee systems in the quarter increased 5% to $1.2bn, driven by a product price rise of 8%.
CEO Ozan Dokmecioglu said Keurig Dr Pepper’s coffee business was steadily recovering from global supply chain interruptions from the previous quarter and expects improved coffee sales in the fourth quarter.
"The third quarter was another strong one for KDP. While the macro landscape remains challenging, our cold beverages portfolio continues to perform exceptionally well, with strong in-market execution and increased marketing investment driving consistent growth in LRB market share. At the same time, our coffee business has steadily recovered from the significant supply chain disruption earlier this year and is poised to deliver strong sales and earnings growth in the fourth quarter," he said.
Earlier this month Keurig Dr Pepper announced Sudhanshu Priyadarshi as its next Chief Financial Officer, where he will lead the company’s finance and information functions.
Keurig Dr Pepper was formed in July 2018 following JAB Holding Company’s acquisition of US soft drinks manufacturer and distributor Dr Pepper Snapple. The German conglomerate merged the company with its Keurig Green Mountain coffee business in a deal worth $18.7bn.
Texas-based Keurig Dr Pepper manages a portfolio of over 125 owned, licensed, partner and allied brands, including retail coffee products from Caribou Coffee, Cinnabon, Gloria Jeans Coffee, Krispy Kreme, Panera Bread and Tully’s Coffee.