More caf­feine, please: Keurig is buy­ing Dr Pep­per Snap­ple

Hawaii Tribune Herald - - GRINDS - By JOSEPH PISANI

NEW YORK — Keurig is buy­ing Dr Pep­per Snap­ple Group, bring­ing to­gether the make-at-home cof­fee brand with the com­pany be­hind Dr Pep­per soda, Mott’s ap­ple juice and Snap­ple iced tea.

The new com­pany, Keurig Dr Pep­per, plans to ex­pand its bot­tled iced cof­fee of­fer­ings that are sold at su­per­mar­kets and con­ve­nience stores. The pri­vate com­pany that con­trols Keurig al­ready owns cof­fee brands like Stump­town and Peet’s.

Keurig Dr Pep­per will of­fer “hot and cold bev­er­ages to sat­isfy ev­ery con­sumer through­out the day,” said Larry Young, chief ex­ec­u­tive of Dr Pep­per Snap­ple.

And the com­bined busi­ness will tap into each other’s dis­tri­bu­tion net­work, bring­ing their brands to more stores and on­line re­tail­ers. The com­pa­nies said they’ll save $600 mil­lion a year start­ing in 2021 by com­bin­ing their ware­house and de­liv­ery sys­tems.

The new com­pany will have about $11 bil­lion in an­nual sales, which still makes it far smaller than soda mak­ers Pep­siCo Inc. and Coca-Cola Co., which had 2016 sales of $63 bil­lion and $41 bil­lion, re­spec­tively.

“There will be more of these,” Dibadj said.

Some Snap­ple fla­vors are al­ready sold as Keurig pods, but there’s a chance that more of Dr Pep­per Snap­ple’s brands will be turned into pods that are placed into Keurig’s sin­gle-serve brew­ing ma­chines to make drinks.

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