Keurig Dr Pepper

American beverage company
the company

Keurig Dr Pepper Inc., formerly Green Mountain Coffee Roasters (1981–2014) and Keurig Green Mountain (2014–2018), is a publicly traded American beverage and coffeemaker conglomerate with headquarters in Burlington, Massachusetts and Frisco, Texas. Formed in July 2018, with the merger of Keurig Green Mountain and Dr Pepper Snapple Group (formerly Dr. Pepper/7up Inc.), Keurig Dr Pepper offers over 125 hot and cold beverages. The company's Canadian business unit subsidiary operates as Keurig Dr Pepper Canada (formerly Canada Dry Motts). The company's east coast division manufactures Keurig brewing systems; sources, produces, and sells coffee, hot cocoa, teas, and other beverages under various brands for its Keurig machines; and also sells coffee beans and ground coffee in bags and fractional packs. As of 2018, the newly merged conglomerate also sells sodas, juices, and other soft drinks via its Dr Pepper Snapple division based in Texas. Green Mountain Coffee Roasters (GMCR) was established in 1981. After regional and national expansion in the late 1980s, and an IPO in 1993, the company completed its acquisition of the brewing machine manufacturer Keurig, Inc. in 2006, enabling rapid growth through the high margin sales of its many varieties of single serve K Cup pods. In March 2014, GMCR changed its name to Keurig Green Mountain. A publicly traded company from 1993 through 2015, Keurig Green Mountain was acquired by a group of investors led by JAB Holding Company in March 2016 for $13.9 billion in cash. Keurig Green Mountain became a privately held company for two years, and was an independent entity run by its pre existing management team and a new CEO. The combined company was renamed Keurig Dr Pepper, and traded publicly again on the New York Stock Exchange under the ticker "KDP" until 2020 when it switched to Nasdaq while retaining the same ticker. Shareholders of Dr Pepper Snapple Group own 13% of the combined company, with Keurig shareholder Mondelez International owning 13% to 14% of that fraction. JAB Holdings owns the remaining 73 74%. In 2021, Keurig Dr Pepper opened its second headquarters in Frisco, Texas.

In 2008 Dr Pepper Snapple group announced the acquisition of a very popular Mexican carbonated beverage company, Manantiales Peñafiel (Peñafiel Springs in English), renaming Manantiales Peñafiel in Mexico as Grupo Peñafiel (Peñafiel Group in English). Squirt (soft drink) was marked as one of the biggest hits of the company in Mexico, due to its famous and extended use there as a cocktail beverage to accompany tequila. In 2018, resulting from the merger of Keurig Green Mountain and Dr Pepper Snapple Group, Keurig Dr Pepper started operations in Mexico as Peñafiel Group, commercializing its portfolio in Mexico and expanding for the first time to Mexican and Latin markets.

Green Mountain Coffee Roasters introduced the Keurig Vue brewer, paired with its new Vue packs, in February 2012, seven months before patents on the K Cup expired in September 2012. The Vue system was announced as having customizable features so consumers had control over the strength, size, and temperature of their beverages, and the Vue pack is made of recyclable #5 plastic. In the fall of 2013, the company released a full pot brewer, the Keurig Bolt, for use mainly in offices. In February 2014, The Coca Cola Company purchased a 10% stake in the company, valued at $1.25 billion, with an option to increase their stake to 16%, which was exercised in May 2014. The partnership was part of Coca Cola's support of a cold beverage system to be developed by Keurig that allows customers to make Coca Cola and other brand soft drinks at home. In early March 2014, Green Mountain Coffee Roasters shareholders voted to change its name to Keurig Green Mountain to reflect its business of selling Keurig coffee makers. Its stock market symbol remained "GMCR". In the fall of 2014, Keurig Green Mountain introduced the Keurig 2.0 brewer, with technology to prevent old or unlicensed pods being used in the brewer. The digital lock out sparked hacking attempts and antitrust lawsuits. The 2.0 brewer also has the capacity to brew full carafes in addition to single servings, via the use of the new K Carafe portion pack. In March 2015, it launched the K Mug pod, a recyclable pod which brews large travel mug–sized portions. In mid 2015 Keurig debuted the K200, a smaller Keurig 2.0 model that can brew single cups or four cup carafes and comes in a variety of colors. General Electric announced that its new Café French Door refrigerator, due out in late 2015, 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. The kits come with a packet of noodles and a K Cup pod of soup, and the varieties include Chicken Noodle and Southwest Style Chicken Noodle. The company's primary competitor in this market area was SodaStream.

On December 7, 2015, an investor group led by private equity firm JAB Holding Company—an investment firm dealing in high end consumer goods, whose holdings include Peet's Coffee & Tea—announced its intent to acquire Keurig Green Mountain for $13.9 billion. The minority investors in the KGM purchase included shareholders in the global coffee and tea company Jacobs Douwe Egberts, which owns Tassimo. The agreement was unanimously approved by Keurig Green Mountain's board of directors. The selling price, at $92 per share, represented a 77.9% premium over the closing price of Keurig Green Mountain (stock ticker "GMCR") on December 5, 2015. The Coca Cola Company, Keurig Green Mountain's largest shareholder at 17.4%, announced its support for the JAB takeover since the sale of its stock holding would provide Coca Cola with a substantial financial benefit. The acquisition closed in March 2016. This created the third largest beverage company in North America. On July 10, shares in Keurig Dr Pepper (KDP) began trading on the New York Stock Exchange. Its stock switched to NASDAQ in 2020. Dr Pepper Snapple Group continues to operate as a business unit under the Keurig Dr Pepper parent company.

GMCR began to embrace an environmental ethos within two years of its founding, and environmentalism and sustainability were important policies for which Green Mountain became well known. Among other initiatives within Green Mountain's first decade, in 1983 employees began composting used coffee grounds at its retail stores; in 1986 the company introduced its first organic coffee in a retail market test; in 1997 it pioneered the first biodegradable bag for bulk coffee purchases;

In 2005, Green Mountain was the first coffee company to support the United Nations' Global Reporting Initiative mission to develop globally accepted sustainability reporting guidelines. In 2008 GMCR's board of directors added a social and environmental responsibility committee. The company offsets 100% of its direct greenhouse gases, and prioritizes waste reduction and responsible energy use, and sustainability over the life cycle of its products. In addition to other awards and recognition for sustainable practices, GMCR was on Sustainable Businesss "World's Top 20 Sustainable Business Stocks" annually from 2002 to 2007, and as of 2015 it is on the EPA's National Top 100 of green power users in the U. S. In 2014, Keurig Green Mountain announced a multi faceted effort to address the long term challenges of the global water crisis, and instituted an initial commitment of $11 million to support nonprofits working to promote water security. Environmental advocates and journalists have criticized the company for the billions of non recyclable and non biodegradable K Cups consumers purchase and dispose of every year, and for the dichotomy between the company's historic environmentally conscious image and the impact of K Cups on the environment. In 2015, the company's chief sustainability officer stated that every new K Cup spin off product introduced since 2006 – including the Vue, Bolt, and K Carafe cups – is recyclable if disassembled into paper, plastic, and metal components. In its 2014 Sustainability Report, released in February 2015, Keurig Green Mountain re affirmed that a priority for the company is ensuring that 100% of K Cup pods are recyclable by 2020.

From its inception, and in tandem with its environmentally conscious outlook, Green Mountain has had a culture grounded in social responsibility, community mindedness, philanthropy, and respect for employees. Among other recognition and awards for its corporate social responsibility (CSR), GMCR was not under consideration for the ranking in 2008, because the focus switched to exclusively large cap companies. It re entered the "100 Best Corporate Citizens" list in 2010 and 2013. In 2005, Green Mountain released its first Corporate Social Responsibility Report. In 2008, GMCR's board of directors added a social and environmental responsibility committee overseeing the company's social responsibilities. GMCR was a pioneer in the Fair Trade movement in 2000, guaranteeing farmers a steady minimum price far above market value. Since 2010 Green Mountain has been the largest purchaser of Fair Trade coffee in the world. In addition, the company was from its beginnings known for its long term relationships and fair dealings with coffee growing suppliers, and for its large percentage of farmer direct coffee purchases. GMCR has prioritized initiatives to alleviate poverty and hunger in coffee growing communities. These include Coffee Kids, an international non profit which improves the lives of children and families in remote coffee growing villages; and the FomCafe cooperative's quality control training program, which helps farmers earn higher profits for coffee. and through it Green Mountain has provided millions of dollars in loans to cash strapped coffee farmers. In 2002 Green Mountain also formed a joint alliance with the U. S. Agency for International Development, to improve the livelihoods of those in impoverished coffee growing regions. The company offers employees continuous training and development opportunities; tuition for outside education; profit sharing; financial education; and continuous career advancement support. GMCR has been on Forbes list of Best Small Companies five times, and has been recognized as a "Best Place to Work" in HR Magazine. The domestic segment produces and sells coffee, hot cocoa, teas and other beverages, to be prepared hot or cold, in Keurig pods; it also sells coffee in traditional packaging, including whole beans and ground coffee in bags, and ground coffee in fractional packs. It also sells patented Keurig single cup brewing systems for use both at home and away from home. Through its owned brands and through its partnerships and licensing, Keurig Green Mountain's K Cup pods offer more than 400 varieties of coffee, tea, and other beverages from 60 brands, including the top ten best selling coffee brands in the U. S.

Founder Bob Stiller was president and CEO of the company from its inception in 1981 until 2007, when he stepped down but remained chairman until May 2012. Lawrence J. Blanford became Green Mountain's president and CEO in 2007. Brian Kelley, previously chief product supply officer of Coca Cola Refreshments, became the company's president and CEO in December 2012. In March 2016, JAB Holding Company and other investors acquired Keurig Green Mountain. The pre existing management team, with Gamgort as its new CEO, continued to run Keurig Green Mountain as an independent entity, following its acquisition by JAB Holding Company.