Coffee continues to be a strong performer for Keurig Dr Pepper with sales of single-serve pods and commercial coffee systems helping the JAB Holdings-controlled beverage company achieve $3.55bn in its second quarter of 2022
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Retail consumption of single-serve pods manufactured by KDP in IRi tracked channels increased 3.8% | Photo credit: via Shutterstock
Keurig Dr Pepper (KDP) has seen sales of its single-serve coffee pods and commercial coffee systems rise in the second three months of 2022, despite supply chain disruption.
Reporting its results for the period ending 30 June 2022, the JAB Holdings-controlled coffee and soft beverages company reported overall net sales increased 13.2% to $3.55bn, compared to $3.14bn during the same period in 2021.
In coffee, retail consumption of single-serve pods manufactured by KDP in IRi tracked channels increased 3.8%, while its dollar market share reached 82%. KDP said that it registered stronger growth in untracked channels.
Net sales of KDP’s commercial coffee systems in the quarter increased 9% to $1.2bn, driven by a product price rise of 5.8%.
Current CEO Bob Gamgort, who is transitioning to Executive Chairman at the end of July as part of an executive leadership team reshuffle, said that the company had successfully recovered from supply chain disruptions in coffee and non-carbonated beverages and will continue trading strongly in an ‘ongoing volatile macro environment’.
"I am pleased with the continued strength of our business and remain confident in our ability to deliver our plans for the second half of this year. I look forward to assuming the role of CEO and partnering with our talented team to drive value creation through the successful execution of our strategic plan," said Ozan Dokmecioglu, who will become CEO at the end of July.
KDP 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.
The company manages a portfolio of over 125 owned, licensed, partner and allied brands, including retail coffee products from prominent US branded chains, Krispy Kreme, Panera Bread, Cinnabon, Caribou Coffee, Tully’s Coffee and Gloria Jeans Coffee.