Keurig Dr Pepper Inc

LSE:0Z62

Keurig Dr Pepper makes and sells beverages for homes, offices, and foodservice customers. Its main products include single-serve coffee pods and brewers under the Keurig name, along with soft drinks, flavored waters, juices, mixers, and ready-to-drink coffees and teas. It sells these drinks through grocery stores, mass retailers, convenience stores, club stores, online channels, and away-from-home locations such as offices, restaurants, and vending systems. The company makes money in two main ways: by selling branded packaged beverages and by selling coffee systems and pods that work with its Keurig machines. That gives it a mix of one-time hardware sales and repeat purchases of consumables, which is a useful model because pod and beverage sales can recur after the first purchase. Its largest customers are retailers and distributors, but the end users are everyday consumers who buy the drinks for home or work use. What makes Keurig Dr Pepper different is that it sits in both the coffee system business and the packaged beverage business. In coffee, it owns a platform that locks in customers to its pods and brewers; in cold drinks, it competes like a traditional beverage company with branded sodas and noncarbonated drinks. That combination gives it exposure to two familiar consumer categories while also tying part of its business to a recurring refill model.