Aug 6, 2026 earnings call — Closed JDE Peet's and advanced integration
Total net sales grew 75%, driven by the JDE Peet's acquisition and strong U.S. Refreshment Beverages performance.
Revenue $7.3B (est $7.2B) · EPS $0.57 (est $0.54) · Next-quarter revenue outlook $25.9B–$26.4B
Key quotes
"We successfully closed the acquisition of JDE Peet's in early April and on day 1, stood up an interim operating model that is purpose-built to support both near-term delivery and separation readiness."
"Segment net sales and operating income each grew at a double-digit rate in the second quarter, reflecting strength across both our core portfolio and newer growth platforms."
"Starting with U.S. Coffee, second quarter net sales declined 3.2%, with volume mix driving an 8.2 percentage point decline."
Analyst Q&A 7
Why U.S. Refreshment is strong
Q (Christopher Carey · Wells Fargo): Analyst asked what drove the strong U.S. Refreshment results, how much came from owned versus partner brands, and how the segment may perform in the back half of the year.
A: Management said U.S. Refreshment delivered double-digit top- and bottom-line performance with a 6.5% increase in volume mix in Q2. Growth came from CSDs (Dr Pepper, Zero Sugar, Creamy Coconut, Canada Dry, Bloom Pop), energy (Bloom and GHOST, C4 refresh), sports hydration (Electrolit), and waters. They said both owned and partner brands each meaningfully contributed and the same drivers should support momentum, though growth magnitude may moderate versus H1 as they lap tougher comps.
"Again, here this quarter, you saw the double-digit top and bottom line performance." — Timothy Cofer (CEO)
Global Coffee CEO search timing
Q (Peter Galbo · BofA): Analyst asked for more precise timing on the Global Coffee Co. CEO hire and whether delay could push the spin.
A: Management said the CEO search is well underway and progressing nicely. They'll hire a world-class leader and remain confident they will have a CEO in place with sufficient time to engage and shape strategy before the targeted 2027 separation, but they will prioritize quality over speed.
"We'll have a CEO in place with sufficient time to engage with the business, shape the strategy ahead of our targeted 2027 separation." — Timothy Cofer (CEO)
Coffee costs and pricing plans
Q (Lauren Lieberman · Barclays): Analyst asked where KDP is in the coffee pricing recovery and how they balance margin protection versus restoring volume, plus the plans to strengthen pods and coffee products in H2.
A: Management said green coffee costs have been volatile, driven recently by El Niño speculation, and prices may remain volatile until that evolves; they typically forward hedge and there is a lag to P&L. They said they have good line of sight to improving coffee costs in the second half as lower-cost inventory and easing tariff impacts move through. On pricing, they aim for a balance of price, mix and volume; enterprise pricing should be a smaller net-sales contributor in H2 as coffee pricing anniversaries and costs ease, and they will look to invest in consumer value.
"In terms of looking ahead, I'd say in the second half, we have really good line of sight to improving coffee costs that will move into lower cost inventory as well as tariff impacts easing." — Anthony DiSilvestro (CFO)
Why U.S. Coffee underperformed
Q (Peter Grom · UBS): Analyst asked why U.S. Coffee came in below expectations and what to expect for the rest of the year versus Q2.
A: Management said U.S. Coffee was under pressure in H1 due to elevated C-price hitting the P&L, a coffee category slowdown, an unfavorable mix shift to private label, and continued pod trade inventory headwinds. They expect better trends in the second half as input costs become more favorable, trade inventory dynamics normalize, and H2 initiatives (pod and brewer innovations, precision marketing) drive Keurig brewer sales and household penetration. Overall they expect a subdued full year for U.S. Coffee but a significantly improved second half.
"The Q2 performance for U.S. coffee was similar to Q1." — Timothy Cofer (CEO)
Bloom brand ownership and role
Q (Robert Ottenstein · Evercore): Analyst asked about Bloom: KDP's ownership stake, how Bloom appears in the income statement, manufacturing/distribution roles, and whether KDP might buy or gain control.
A: Management said Bloom is part of the Nutrabolt organization and that KDP has a long-term partnership with Nutrabolt covering C4 and Bloom. They said they own a 36% stake in Nutrabolt, have multiple board seats, and work closely with the founders; KDP provides DSD distribution and strong commercial support and sees continued robust growth potential.
"And we own a 36% stake in Nutrabolt and actually have multiple board seats." — Timothy Cofer (CEO)
Keurig and Peet's integration benefits
Q (Robert Moskow · TD Cowen): Analyst asked what Keurig and JDE Peet's can do together, given they are still separate geographically, and whether coffee procurement synergies remain possible amid volatility.
A: Management said they are already capturing benefits by moving to one leadership team, a single invoice, and an integrated sales force, enabling coordinated marketing, variety packs, new formats, cold coffee opportunities, and joint plans to customers. They remain confident in a $400 million cost synergy program, with opportunities in procurement, IT and SG&A, and manufacturing/logistics; Q2 contribution was modest but they have line of sight to growing benefits in H2 and beyond.
"We remain very confident in the $400 million cost synergy program." — Anthony DiSilvestro (CFO)
Energy drinks growth and coffee impact
Q (Filippo Falorni · Citi): Analyst asked for color on the energy category, KDP's progress toward double-digit share, and whether energy growth is taking share from coffee.
A: Management said energy is a large, fast-growing category with structural growth drivers and distribution and household penetration upside; KDP's energy portfolio (C4, Bloom, GHOST, Black Rifle) focuses on Zero Sugar and benefits from DSD execution. They said KDP's energy run rate is a $1.5 billion net sales business and they have grown to about a 9% share from under 1% four years ago, with double-digit share already in 15 major customers. On interaction with coffee, they monitor shifts closely and have not seen sustained share movement between coffee and energy over the last 3 to 4 years, calling the aggregate impact broadly neutral.
"Right now, on a run rate basis, Filippo, we're looking at a $1.5 billion net revenue, net sales business." — Timothy Cofer (CEO)