Sales have soared at Keurig Dr Pepper, as the Texan multinational reaped the rewards of a full year’s input from recently acquired US energy drink disruptor Ghost.
Adjusted net sales jumped 9.9% in Q4 to tie off a strong year at the beverages giant, taking full-year revenues to $16.6bn – up 8.6% on 2024.
The company’s growth largely came from the company’s US refreshment beverages division, where Ghost – acquired in late 2024 – contributed strongly to a 9% leap in volumes in the year to 31 December 2025.
Ghost’s contribution – worth 3.8 percentage points of the group’s 4.8% volume/mix growth in 2025 – helped to offset softness in US coffee volumes, which slumped 4.2%. Keurig Dr Pepper managed to more than offset the drop with a 4.8% rise in pricing, however, and group performance was bolstered further by strong growth in its international division, where constant currency sales grew 9.3% through both volume and pricing gains.
Operating income jumped 38% in 2025, rising to $3.6bn – a figure that increased to $4.2bn when adjusted for financial exchange rates.
CEO Tim Cofer said: “2025 was another strong year for KDP. We delivered on our guidance, navigated the dynamic operating environment with agility, and executed well in the marketplace with winning innovation and robust commercial activation of our brands.
“In 2026, we intend to build upon our momentum with the acquisition and integration of JDE Peet’s and progress towards the subsequent separation into two advantaged pureplay companies.”
The acquisition, to be completed in April 2026, will precede a split of Keurig Dr Pepper into the yet unnamed ‘Beverage Co’ and ‘Global Coffee Co’ in a move to unlock shareholder value.
The company has further prepared for the purchase by securing an extra $1.5bn from “high-quality” private equity investors headed by Apollo and KKR.
Now standing at $4.5bn, the finance package will allow Keurig Dr Pepper to forego a mooted partial IPO of Beverage Co. The finance instrument will be left with Beverage Co following the split. Shares in the group rose 4.3% following the announcement of both the results and the new investment.
Having led Keurig Dr Pepper up to the point of this transformational acquisition and break-up, chairman Bob Gamgort will leave the business, though continue to work with the company as an investor.
“With KDP delivering strong performance in 2025 and establishing a compelling outlook for a transformational 2026, the time is right for me to step back from the board,” he said.
“The strategic vision for KDP’s future is clear, and planning for the integration of JDE Peet’s and subsequent separation into two new companies is well underway under the leadership of Tim and our capable team. Ten years after my initial investment in the Keurig Green Mountain take-private transaction, I am committed to participating in KDP’s next leg of value creation as a long-term investor.”
Gamgort will be succeeded by Keurig Dr Pepper’s current lead independent director Pamela Patsley at the end of Q1 2026.
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