Keurig Dr Pepper facts for kids
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Formerly
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| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=US49271VAP58 US49271VAP58] |
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| Predecessor | Dr Pepper Snapple Group |
| Founded | 1979 (as Green Mountain Coffee Roasters) in Waitsfield, Vermont, U.S. |
| Founder | Robert Stiller |
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Key people
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| Revenue |  US$15.3 billion (2024) |
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Operating income
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 US$2.59 billion (2024) |
| US$1.44 billion (2024) |
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| Total assets | US$53.4 billion (2024) |
| Total equity | US$24.2 billion (2024) |
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Number of employees
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29,400 (2024) |
Keurig Dr Pepper Inc. is a big American company that makes drinks and coffee machines. It has main offices in Burlington, Massachusetts, and Frisco, Texas. The company was created in July 2018. This happened when two companies, Keurig Green Mountain and Dr Pepper Snapple Group, joined together.
Keurig Dr Pepper sells over 125 different hot and cold drinks. Its Canadian part is known as Keurig Dr Pepper Canada.
The Keurig part of the company, based in Massachusetts, makes coffee brewing machines. It also gets, makes, and sells coffee, hot cocoa, teas, and other drinks. These are sold under many different brand names for Keurig machines. They also sell coffee beans and ground coffee in bags.
Since 2018, the company also sells sodas, juices, and other soft drinks. This is done through its Dr Pepper Snapple part, which is based in Texas.
The company started as Green Mountain Coffee Roasters (GMCR) in 1979. It grew a lot in the late 1980s. In 1993, it became a public company, meaning its shares could be bought and sold. In 2006, it bought Keurig, Inc., which made brewing machines. This helped the company grow quickly by selling many types of K-Cup pods. In March 2014, GMCR changed its name to Keurig Green Mountain.
Keurig Green Mountain was a public company from 1993 to 2015. In March 2016, a group of investors led by JAB Holding Company bought it for $13.9 billion. Keurig Green Mountain then became a private company for two years. It was run by its original leaders and a new CEO.
On July 9, 2018, Keurig Green Mountain bought the Dr Pepper Snapple Group for $18.7 billion. The new combined company was named Keurig Dr Pepper. It started trading publicly again on the New York Stock Exchange as "KDP". In 2020, it moved its stock listing to Nasdaq, keeping the same ticker symbol.
In 2021, Keurig Dr Pepper opened its second main office in Frisco, Texas. Since April 2024, Tim Cofer has been the CEO of Keurig Dr Pepper.
Company History
Early Days of Green Mountain Coffee
The first Green Mountain Coffee Roasters (GMCR) was started in November 1979. It was founded by Doug and Jamie Baine in Waitsfield, Vermont. In 1981, a businessman named Bob Stiller tasted some coffee he really liked near a Vermont ski resort. He then bought a part of the company.
The store and cafe sold coffee beans and ground coffee to people and restaurants. Stiller focused on roasting coffee using arabica beans. By 1982, the company had about 30 employees. It moved its production to Waterbury, Vermont.
Stiller bought out his partners and became the only owner within two years. But it took four years for the company to start making a profit. To make the business bigger, Stiller sold coffee to fancy restaurants and gas stations. He also gave out free samples because he couldn't afford to advertise. In 1986, he started a mail-order business. He also got his first supermarket customer, Kings.
Stiller used technology to keep track of customer orders. He also used it to control roasting heat and manage sales and employees. By 1983, employees were composting used coffee grounds at their stores. In 1986, Green Mountain started selling its first organic coffee. The company became one of the biggest sellers of both fair-trade and organic coffee in the world.
As people's tastes in coffee changed in America, sales of Green Mountain roasted coffee beans grew. In 1991, GMCR had seven stores and $11 million in sales. By 1993, the company had many more customers and sales of about $10 million. Green Mountain Coffee Roasters, Inc. then started selling its shares publicly. The company grew its stores, food service, mail-order, and wholesale businesses.
In 1994, Green Mountain began selling its products in Canada and Taiwan. In the late 1990s, it expanded to more supermarkets and gas stations. It also sold its products on airlines and Amtrak.
Keurig and the K-Cup Launch
In 1993, three engineers from a company called Keurig talked to GMCR. They wanted to create a single-cup coffee brewing system. This was GMCR's first time investing in Keurig. In 1996, GMCR invested more, buying 35% of Keurig.
The next year, GMCR was the first coffee company to offer coffee in a K-Cup pod. These pods were for the Keurig Single-Cup Brewing System. In 1998, Keurig released its first brewing system, made for offices. Selling K-Cups with Green Mountain Coffee helped GMCR compete with companies like Starbucks. People could now make their own single cups of great coffee at home.
Also in 1997, a deal with Poland Spring helped GMCR sell coffee to thousands of offices. In 1998, GMCR closed its 12 retail shops. It focused more on direct mail, online sales, and selling to businesses. That year, the company made a special deal with American Skiing Company. It also started selling its organic coffee in ExxonMobil's stores. By 1999, it was selling its products in more countries, including Great Britain.
In 2000, Green Mountain agreed to sell fair trade coffee. This meant at least 3% of its sales would be fair-trade certified. In 2001, the company bought Frontier Organic Coffee. In 2002, it signed a deal to sell fair trade coffee under the Newman's Own Organics name. In late 2005, GMCR made a deal to sell its Newman's Own Organics Blend coffee in over 600 McDonald's restaurants.
Buying Keurig, Inc.
By 2006, Green Mountain owned 43% of Keurig, Inc. It had slowly bought more of the company between 1993 and 2003. This helped it fully buy the company that made single-cup brewing systems. This purchase allowed Green Mountain to sell many different brands. It also helped the company sell its products in many different places. This led to a lot of growth in sales.
Green Mountain also bought four more companies that made Keurig products in 2009 and 2010:
- In March 2009, it bought Tully's Coffee for $40.3 million.
- In November 2009, it bought the wholesale part of Canadian coffee company Timothy's World Coffee for $157 million.
- In December 2009, it bought Diedrich Coffee for $290 million.
- In 2010, Green Mountain Coffee bought the Canadian company Van Houtte for $915 million. In 2010, GMCR Canada was started. It became the Canadian part of Green Mountain Coffee Roasters, Inc. the next year. It is now called Keurig Dr Pepper Canada.
In February 2011, Green Mountain announced a deal with Dunkin' Donuts. This made Dunkin' Donuts coffee available in K-Cup pods. Dunkin' Donuts restaurants also sometimes sold Keurig brewers. In March 2011, Green Mountain Coffee and Starbucks made a similar deal. Starbucks would sell its coffee and tea in Keurig pods. In return, Starbucks would sell Keurig machines in its stores.
Keurig Dr Pepper in Latin America
In 2008, Dr Pepper Snapple Group bought a popular Mexican soda company called Manantiales Peñafiel. They renamed it Grupo Peñafiel. Squirt (soft drink) became one of the company's biggest successes in Mexico. It was very popular as a drink to mix with tequila. In 2018, after Keurig Green Mountain and Dr Pepper Snapple Group joined, Keurig Dr Pepper started working in Mexico. It began selling its drinks in Mexico and expanded into other Latin American markets for the first time.
New Brewers and Company Name Change
Green Mountain Coffee Roasters launched the Keurig Vue brewer in February 2012. It came with new Vue packs. The Vue system allowed users to control the strength, size, and temperature of their drinks. The Vue pack is made of recyclable #5 plastic. In November 2012, GMCR released the Rivo, a machine for espresso, cappuccino, and latte. In the fall of 2013, the company released the Keurig Bolt, a full-pot brewer mainly for offices.
In February 2014, The Coca-Cola Company bought 10% of the company for $1.25 billion. They later increased their share to 16% in May 2014. This partnership was to help Keurig develop a cold drink system. This system would let customers make Coca-Cola and other soft drinks at home. In January 2015, the company made a similar deal with Dr Pepper Snapple Group.
In early March 2014, Green Mountain Coffee Roasters shareholders voted to change its name. It became Keurig Green Mountain to show that it also sold Keurig coffee makers. Its stock symbol stayed "GMCR".
In the fall of 2014, Keurig Green Mountain introduced the Keurig 2.0 brewer. This machine had technology to stop old or unofficial pods from being used. This digital lock led to attempts to hack the machine. The 2.0 brewer could also make full pots of coffee using new K-Carafe packs.
In March 2015, it launched the K-Mug pod. This is a recyclable pod that makes large, travel mug-sized drinks. In mid-2015, Keurig released the K200. This was a smaller Keurig 2.0 model that could brew single cups or four-cup pots. It came in many colors. General Electric announced that its new refrigerator would have a Keurig coffee machine built into the door.
In September 2015, Keurig launched a line of Campbell's Soup available in K-Cups. These kits came with noodles and a K-Cup pod of soup.
Also in September 2015, Keurig launched Keurig Kold. This machine made various cold drinks like sodas and sparkling waters. It could make drinks from The Coca-Cola Company and Dr Pepper Snapple Group. The company stopped selling this machine in June 2016 and offered refunds.
Bought by JAB and Other Investors
On December 7, 2015, a group of investors led by JAB Holding Company announced they would buy Keurig Green Mountain for $13.9 billion. JAB Holding Company invests in high-end consumer goods. The deal was approved by Keurig Green Mountain's board of directors.
The selling price was $92 per share. This was much higher than the stock price on December 5, 2015. The Coca-Cola Company, which owned a large part of Keurig Green Mountain, supported the sale. They knew it would bring them a lot of money.
The purchase was completed in March 2016. Keurig Green Mountain became a private company. It continued to be run by its existing leaders. Its main office stayed in Waterbury, Vermont.
Buying Dr Pepper Snapple Group
In July 2018, Keurig Green Mountain bought Dr Pepper Snapple Group for $18.7 billion. Dr Pepper Snapple Group was the company that officially continued to exist. It remained publicly traded and changed its name to Keurig Dr Pepper. This created the third largest beverage company in North America. On July 10, shares in Keurig Dr Pepper (KDP) started trading on the New York Stock Exchange. Its stock moved to NASDAQ in 2020. Dr Pepper Snapple Group still works as a part of the larger Keurig Dr Pepper company.
Company Business
Inventory Lawsuit
In 2010, the SEC started looking into how Green Mountain Coffee recorded its money. Soon after, a group of people filed a lawsuit about how the company handled its inventory. The lawsuit claimed that Green Mountain Coffee said demand was high, even though they kept making more products. Some employees said that inventory was moved between places without proper records. This was done to make the inventory numbers look higher and make the company's earnings seem better. In June 2018, Keurig Green Mountain, Inc. agreed to pay $36.5 million to settle the lawsuit.
Being Sustainable
Green Mountain started caring about the environment early on. Being environmentally friendly and sustainable became very important to the company. For example, in 1983, employees started composting used coffee grounds. In 1986, the company introduced its first organic coffee. In 1989, it started an Employee Environmental Committee and a recycling program. In 1990, it launched Rain Forest Nut coffee to help save rainforests. It gave 10% of the profits to groups like Conservation International.
In 1992, the company created a program to promote good environmental practices. In 1997, it made the first biodegradable bags for coffee. In 2006, it introduced the ecotainer, a to-go cup made from renewable materials.
In 2005, Green Mountain was the first coffee company to support the United Nations' Global Reporting Initiative. This group works to create global rules for reporting how sustainable companies are. In 2008, GMCR's board of directors added a committee for social and environmental responsibility. As of 2015, Keurig Green Mountain has a Chief Sustainability Officer.
The company makes up for all of its direct greenhouse gases. It focuses on reducing waste and using energy wisely. It also thinks about sustainability throughout the life of its products. Green Mountain has won many awards for its sustainable practices. It was on Sustainable Business's "World's Top 20 Sustainable Business Stocks" for many years. As of 2015, it is on the EPA's list of top green power users in the U.S. In 2014, Keurig Green Mountain promised $11 million to groups working to solve the global water crisis.
However, some environmental groups have criticized the company. They point out the billions of K-Cups that are not recyclable and do not break down. They say this goes against the company's environmentally friendly image. In 2015, the company's chief sustainability officer said that all new K-Cup products since 2006 are recyclable if taken apart. In its 2014 Sustainability Report, Keurig Green Mountain said it wanted 100% of K-Cup pods to be recyclable by 2020.
Helping Communities
From the start, Green Mountain cared about social responsibility and helping communities. It was also known for its kindness and respect for employees. The company has won many awards for its corporate social responsibility (CSR). It was in the top ten of the "100 Best Corporate Citizens" for several years.
In 2005, Green Mountain released its first report on how it helps society. In 2008, GMCR's board added a committee to oversee the company's social responsibilities. It also created a vice president role for corporate social responsibility. This person reports directly to the CEO. The company's Sustainability Committee also focuses on helping coffee farmers and communities.
GMCR was a leader in the Fair Trade movement in 2000. This meant guaranteeing farmers a fair price for their coffee. Since 2010, Green Mountain has bought the most Fair Trade coffee in the world. The company is also known for its long-term relationships with coffee farmers. Since the early 1990s, employees have visited coffee farms in Latin America. This helps them understand the lives of coffee growers.
GMCR has worked to reduce poverty and hunger in coffee-growing areas. This includes supporting groups like Coffee Kids. This non-profit helps children and families in remote coffee villages. In 2002, GMCR was the first company to invest in Root Capital. This group gives small loans to coffee farmers who need money. Green Mountain has provided millions of dollars in loans through them.
Inside the company, GMCR has a friendly corporate culture. Employee ideas and teamwork are very important. The company offers employees training and chances to grow. It also helps with education costs and offers profit-sharing. Employees are paid for up to 52 hours of volunteer work each year. GMCR has been on Forbes' list of Best Small Companies many times. It has also been called a "Best Place to Work."
What the Company Sells
Keurig Green Mountain has two main parts: domestic (U.S.) and Canada. The U.S. part makes and sells coffee, hot cocoa, teas, and other drinks in Keurig pods. It also sells coffee in bags and ground coffee. It sells Keurig single-cup brewing systems for homes and offices.
The Canadian part, Keurig Canada Inc., sells Keurig brewers. It also makes and sells coffees, teas, and other drinks in different packages. This includes Keurig pods, bags, and cans. It sells under brands like Van Houtte and Brulerie St. Denis.
Through its own brands and partnerships, Keurig Green Mountain's K-Cup pods offer over 400 types of drinks. These come from 60 different brands. This includes the top ten best-selling coffee brands in the U.S.
Company Leadership
Founder Bob Stiller was the president and CEO from 1981 to 2007. He then stepped down but stayed as chairman until May 2012. Lawrence J. Blanford became Green Mountain's president and CEO in 2007. Brian Kelley became the company's president and CEO in December 2012.
In March 2016, JAB Holding Company and other investors bought Keurig Green Mountain. Robert Gamgort became the new CEO in May 2016. The existing leaders, with Gamgort as CEO, continued to run Keurig Green Mountain. After the 2018 merger with Dr Pepper Snapple, Gamgort became CEO of Keurig Dr Pepper. Larry Young, who was CEO of Dr Pepper Snapple, retired and joined the new company's board. In April 2024, Tim Cofer became the CEO of Keurig Dr Pepper. Robert Gamgort remained as the Executive Chairman.
Brands You Might Know
- 50/50
- 7 Up (U.S.A., Pakistan & India)
- A&W Root Beer (most of the world, not Canada or Philippines)
- Bai Brands
- Bonsai Sparkling Water
- Cactus Cooler
- Canada Dry
- Core Brands (Water/Fitness Nutrition)
- Crush
- Dejà Blue
- Diedrich Coffee
- Dr Pepper (U.S. and Mexico only)
- Ghost
- Gloria Jean's Coffees
- Green Mountain Coffee
- Hawaiian Punch (U.S. only)
- Hires Root Beer
- IBC Root Beer
- Keurig
- K-Cups
- Mott's
- Nestea
- Peñafiel
- ReaLemon and ReaLime
- RC Cola (U.S. only)
- Rose's
- Schweppes (North America)
- Snapple
- Squirt
- Stewart's Fountain Classics
- Straight Up Tea
- Sun Drop
- Sunkist
- Timothy's World Coffee
- Tully's Coffee
- Van Houtte
- Venom Energy
- Vernors
- Yoo-hoo
