Analysis: Keurig Dr Pepper’s Q1 results show why JDE Peet’s tie-up can’t come soon enough

As the US beverage group’s sizeable coffee portfolio slips back into profit decline, all eyes are on its $18bn acquisition of JDE Peet’s to reinvigorate sales

Keurig Dr Pepper (KDP) ended the quarter before its $18bn acquisition of JDE Peet’s with strong soft drinks sales, but an underwhelming performance from its coffee segment.

The US beverages group achieved 9.4% year-on-year sales growth in the first quarter ended 31 March 2026, reaching $4bn. The strong performance was driven by 12% sales growth and robust $2.6bn revenues for its soft beverages division, which includes the Dr Pepper, 7 Up, Crush and Schweppes brands.

Coffee sales, on the other hand, fell 2.3% year-on-year to $857m. An average price increase of 6% across its portfolio of packaged, capsule and ready-to-drink (RTD) coffee ranges during the quarter contributed to an 8% decline in volumes.

The division’s adjusted operating income also declined during the period, down 21% to $199m, with KDP Chief Financial Officer Anthony DiSilvestro telling investors that sustained inflationary pressures continued to exceed pricing actions and productivity gains.

The results come after KDP’s coffee segment appeared to be turning a corner following two consecutive quarters of improved net sales during the second half of 2025.