Coffee and soft beverage giant reports a net sales increase of 4.5% to $11.62bn in 2020, as performance of its coffee pods and branded soft drinks remains robust amid Covid-19
Keurig coffee pod machines on sale in the US, where the at-home coffee category has boomed during the pandemic | Photo credit: Mike Mozart via Flickr
Reporting its full-year results for 2020, Keurig Dr Pepper (KDP) said net sales increased 4.5% to $11.62bn amid strong demand for coffee and soft beverages.
Reflecting the trend toward at-home consumption due to increased home working and Covid-19 disruption to out-of-home channels, the JAB Holding-controlled company reported net sales of coffee systems increased 4.7% to $4.43bn, compared to $4.23bn during the same period last year.
Retail consumption of KDP’s single-serve pods grew nearly 10% during the period, driven by accelerated growth in e-commerce channels and offsetting ‘significant declines’ in out-of-home, office and hospitality business demand, the company said.
For the full-year, US households regularly using a Keurig brewer increased approximately 10% to 33 million households, according to data from market tracker IRi. Based on the robust results, the company said it expects to deliver ‘strong net sales growth in 2021’.
"KDP again delivered on its annual financial commitments in 2020, capped by a strong fourth quarter with exceptional growth in net sales that was driven by market share gains across our portfolio and accelerated household adoption of the Keurig system,” said KDP Chairman and CEO Bob Gamgort.
“While we expect 2021 to be another challenging and unpredictable year, we're confident in our ability to deliver the final year of the merger commitments communicated in 2018,” he added.
KDP’s strong performance underlines the strength of the US at-home coffee market during the global pandemic, with market competitors, including Nestlé, also reporting robust performance in the category. In 2020, German coffee giant, Tchibo, announced it would begin selling at-home coffee products to US consumers after eyeing significant market potential.
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.
JAB Holding continues to grow its significant influence in both at-home and out-of-home coffee channels in the US. In June 2020 its JDE Peet’s business raised $2.5bn in an IPO that valued the company at $17.3bn. In 2020 the company reported it held around 13% of the total $17bn single serve coffee category, a proportion it will be seeking to grow as the global at-home coffee market goes from strength to strength.