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Coffee, Juice & Soda – A Merger of Beverages

Touch the Soil News #927 (Feature photo – CC CCO 1.0 Universal Public Dedication)

Keurig Green Mountain and Dr Pepper Snapple have announced a preliminary agreement to merge, according to a recent press release from Keurig. The deal will bring together many iconic brands into a new company that is estimated to generate $11 billion in annual sales.

Existing stockholders of Dr Pepper Snapple will receive a one-time cash payment of $103.75 per share after which they will retain a modest 13 percent of the new company. But think about this. Dr Pepper Snapple has 181 million shares outstanding. At $103.75, that equates to Keurig having to write a check for $18.8 billion. The merger is still subject to stockholder approval.

Keurig Green Mountain is owned by JAB Holding Company, a privately held German conglomerate in Luxembourg. By the way, JAB Holding Company already owns Peets Coffee, Einstein Bagels, Krispy Kreme and Panera Bread.

Is it possible that mergers of this scope are indirectly and sub-consciously driving social movements around food?

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