Keurig Dr Pepper: Time to Kick the Tires; Upgrade to OW

Research evidence excerpt

Keurig Dr Pepper: Time to Kick the Tires; Upgrade to OW

Barclays | Keurig Dr Pepper

FIGURE 10. We believe the Dr Pepper transition to KDP in CA resulted in some transitory share

disruption, with the bigger driver of pressure in early 2026 due to innovation comps, but unflavored

Dr Pepper and the total brand family has stabilized in 2Q

0 (bps)

YoY

-50

Chg

Shr -100

$

-150

Total Dr Pepper Brand Family Unflavored Dr Pepper

Unflavored Dr Pepper includes regular Dr Pepper, Diet Dr Pepper and Dr Pepper Zero Sugar

Source: US NielsenIQ, Barclays Research

Focused international ambitions

Recall we were surprised by the callout of “other geographies” beyond Mexico and Canada at

1Q26 earnings, but our understanding is that the mention wasn't laying groundwork for a

material shift towards broader international expansion under future Bev Co. We expect Mexico

and Canada will remain the key focus areas in terms of international runway. That said, the

recently expanded Suntory European partnership to additional markets (e.g. Iberia,

Switzerland) did at least give a reason to remind the market of opportunities to extend the

reach of the Dr Pepper and Canada Dry brands beyond North America in a capital-efficient

manner (i.e., concentrate model).

Coffee Co: The right strategic logic but with more to prove

While we’ve heard very little pushback in terms of the JDEP deal's strategic merit, investor

appetite for a pure-play coffee entity appears to be decidedly more muted than the pure-

play LRB vehicle. We’d continue to summarize the Global Coffee Co rationale as adding scale

and diversification – in fact, Global Coffee Co would be the second largest coffee player globally

and the largest coffee buyer according to KDP. The combination brings additional exposure to