Despite a slow return to office workplaces, coffee remains a strong performer for Keurig Dr Pepper (KDP), as at-home retail coffee sales continue to grow alongside ‘improving’ out-of-home coffee channels
KDP reports strong third quarter retail coffee sales but out-of-home recovery still ongoing | Photo credit: via Shutterstock
The JAB Holdings-controlled business reported third quarter revenues of $3.25bn, a 7.6% increase on the same period in 2020.
In coffee, retail consumption of KDP manufactured single-serve pods in IRi data-tracked channels increased 4.3%, while its dollar market share increased to 83%.
Across its coffee systems business, the Texas-headquartered company reported net sales of $1.16bn in the third quarter, a 5.3% increase compared to $1.1bn earned in the same period in 2020.
Coffee pod volume growth of 6.3% was reflected in ‘continued strong growth in the at-home business’ and ‘improving trends in the away-from-home business.’ However, KDP added that workers returning to offices continued to be slow and its away-from-home business remained 'well below' pre-pandemic levels.
"In the quarter, we continued to effectively manage through macro challenges to deliver strong and balanced results. We are now entering the final quarter of our three-year, post-merger period with excellent top-line momentum and are on track to deliver or exceed our original merger commitments," said Bob Gamgort, Chairman and CEO, KDP.
Keurig Dr Pepper was formed in 2018 after JAB Holding Company acquired US soft drinks manufacturer, Dr Pepper Snapple, and merged it with its Keurig Green Mountain coffee business in a deal worth $18.7bn.
The company now controls a portfolio of more than 125 owned, licensed, partner and allied brands, including Krispy Kream, Panera Bread, Cinnabon and Caribou Coffee.