Keurig Dr Pepper’s Revenue by Segment (2016-2023)

Packaged Beverages

Dr Pepper’s packaged beverages segment mainly manufactures and distributes packaged beverages of their brands. A majority of Dr Pepper’s revenue, about 48% comes from this segment.

In order to maximize the size and scale of their distribution and manufacturing operations, Dr Pepper even distributes packaged beverages for their partner brands. These are manufactured, also for other third parties in the U.S. and Canada. This is because the majority of revenue from this segment comes not only from the manufacturing and distribution of their own brands but also from the contract manufacturing of certain private label and emerging brand beverages. This, in return, provides Dr Pepper with exposure in certain markets at minimal capital investment.

On a QoQ basis, revenue from package beverages increased by 3.3%, however, it grew twice as much on a YoY basis. In 2020, Walmart was this segment’s largest customer. 

Coffee Systems

The Coffee Systems segment is primarily a producer of innovative single-serve brewers and specialty coffee in the U.S. and Canada. They manufacture K-Cup pods in facilities in North America, using freshly roasted and ground coffee along with tea, cocoa, and other products.  They  design and engineer single-serve brewers, utilizing third-party contract manufacturers located in various countries in Asia for brewer appliance manufacturing. These are distributed using third-party distributors, retail partners, and through their website.

On a QoQ basis, revenue from coffee systems grew by 4.9%. However, on a YoY basis, there was an increase of 5.3%. In 2020, Walmart and Costco were this segment’s largest customers. 

Beverage Concentrates

This segment is primarily a brand ownership business. Here, they manufacture and sell beverage concentrates in the U.S. and Canada. Almost all of Dr Pepper’s beverage concentrates are currently manufactured at their plants in St. Louis, Missouri. They are even expanding their manufacturing capabilities to include a concentrate manufacturing facility in Ireland in 2021.

Beverage concentrates are shipped not only to their own manufacturing systems but also to third-party bottlers. They combine them with carbonation, water, sweeteners, and other ingredients, package the combined product in aluminum cans, PET containers, and glass bottles, and sell them as a finished beverage to retailers. Beverage concentrates are also manufactured into syrup. This is then shipped to fountain customers, such as fast-food restaurants, who mix the syrup with water and carbonation to create a finished beverage at the POS to consumers. 

On a QoQ basis, the revenue from this beverage concentrates grew by 4.5%. However, there was an 11.4% YoY increase reported in 2021. 

Latin America Beverages

This segment is a manufacturing and distribution business, primarily of carbonated mineral water, flavored CSD (carbonated soft drink), bottled water, and vegetable juice categories. The operations of Keurig are mainly based in Mexico, representing approximately 90% of the segment’s net sales. 

On a QoQ basis, the revenue from this segment declined by 6%. However, on a YoY basis, there was a 25.8% increase in the revenue. In 2020, Walmart was this segment’s largest customer. 

About the Company 

Keurig Dr Pepper Inc. is a leading beverage company in North America, listed on NASDAQ with stock ticker KDP. They have a diverse portfolio of:

• flavored (non-cola) CSDs,
• NCBs (Non-carbonated beverage), including water (enhanced and flavored),
• ready-to-drink tea and coffee, juice, mixers, and specialty coffee.

They are even a leading producer of innovative single-serve brewing systems. KDP has some of the most recognized beverage brands in North America, and long histories that evoke strong emotional connections with consumers.

KDP was created through the merger of the business operations of Keurig, a leading producer of innovative single-serve brewing systems and specialty coffee in the U.S. and Canada, and DPS, a company built over time through a series of strategic acquisitions of beverage brands in North America such as Dr Pepper, Snapple, 7UP, and the Peñafiel business in Mexico.

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