Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, with approximately 5 percentage points of growth from the base business and nearly 4 points from GHOST contributions [6][25] - EPS grew by 7% for the year, while Q4 EPS increased by 2% [6][25] - Operating income for Q4 grew by 4.8%, despite headwinds from interest expense and a slightly higher tax rate [25] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages showed strong performance with net sales growth of 11.5% in Q4, driven by volume mix and net price realization [26][27] - U.S. Coffee segment revenue increased by 4%, but operating income declined by a high single-digit rate due to cost pressures [13][29] - International segment net sales grew by 16% in constant currency, with a 20% increase in operating income [18][30] Market Data and Key Metrics Changes - The U.S. retail sales growth among top food and beverage manufacturers was the fastest for KDP, with market share gains across its portfolio [3] - The carbonated soft drink category remains strong, with KDP gaining market share in Dr Pepper for the ninth consecutive year [6][9] - The energy drink category is projected to continue growing, with KDP's multi-branded energy platform gaining nearly 1.5 points in market share [11][54] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit EPS growth, integrating JDE Peet's, and establishing two standalone businesses [4][22] - The company is advancing its operational readiness for separation by the end of 2026, with significant progress on integration planning for the JDE Peet's acquisition [5][22] - KDP plans to enhance its portfolio through innovation, including new product launches and marketing strategies [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth in 2026, despite anticipated cost pressures in the first half of the year [34][36] - The company is navigating a dynamic operating environment while laying the groundwork for long-term success [3][5] - Management acknowledged the challenges posed by inflation and cost pressures but remains committed to investing for future growth [15][61] Other Important Information - The company reported free cash flow of $1.519 billion in 2025, with expectations to increase to approximately $2 billion in 2026 [32] - KDP is refining its financing structure for the JDE Peet's acquisition, including an increase in the convertible preferred equity raise to $4.5 billion [32][33] - The board is evolving with new independent directors and a focus on establishing strong governance for the future standalone companies [38][39] Q&A Session Summary Question: Top line performance for standalone KDP - Management expects low double-digit EPS growth, with KDP standalone guidance of 4%-6% top line growth driven by U.S. Refreshment Beverages [45][46] Question: Existing KDP debt allocation - Existing KDP debt will remain with Beverage Company, while Global Coffee Co. will assume $5 billion of JDE Peet's debts [51][52] Question: Energy category growth - Management believes the energy category has multiple growth drivers and expects to gain shelf space without cannibalizing other portfolio segments [54][55] Question: Coffee business commodity headwinds - Cost headwinds are expected to peak in Q1, with relief anticipated in the latter part of the year due to inventory and hedging timing [59][60] Question: Organic sales growth in Q1 - Management anticipates some pressure in Q1 due to retail inventory adjustments, but expects visibility for EPS growth in Q2 and beyond [66][68] Question: Partner brands strategy - KDP aims for a balanced approach between core brand growth and partnerships, with flexibility to capture white space opportunities [70][71]

Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, with approximately 5 percentage points of growth from the base business and nearly 4 points from GHOST contributions [6][25] - EPS grew by 7%, while Q4 EPS increased by 2% [6][25] - For the full year, net sales grew 8.6%, operating income increased by 4.9%, and EPS rose by 7.3% on a constant currency basis [25] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages saw double-digit net sales growth and high single-digit operating income growth [6][26] - U.S. Coffee segment revenue increased by 4%, but operating income declined at a high single-digit rate due to cost pressures [13][29] - International segment delivered mid-teens constant currency net sales growth and 20% operating income growth, driven by strong performance in Mexico and Canada [18][30] Market Data and Key Metrics Changes - The U.S. retail sales growth among top food and beverage manufacturers was the fastest for KDP, with market share gains across its portfolio [3] - The carbonated soft drink category remains strong, with KDP gaining market share in Dr Pepper for the ninth consecutive year [6][9] - The energy drink category is expected to continue growing, with KDP's multi-branded energy platform increasing market share by nearly 1.5 points [11][54] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit EPS growth, integrating JDE Peet's, and establishing two standalone businesses [4][22] - The company is advancing its operational readiness for separation by the end of 2026 and capturing initial deal-related synergies [5][22] - KDP plans to enhance its portfolio through innovation, including new product launches in refreshment beverages and coffee [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth despite cost pressures and inflation [4][34] - The company anticipates that cost headwinds will peak in Q1 2026 before easing, allowing for improved performance in the latter half of the year [30][60] - Management highlighted the importance of innovation and marketing investments to support long-term growth [16][70] Other Important Information - The company reported free cash flow of $1.519 billion in 2025, with expectations to increase to approximately $2 billion in 2026 [32] - KDP is refining its financing structure for the JDE Peet's acquisition, increasing the size of its convertible preferred equity raise to $4.5 billion [32][33] - The board is evolving with new independent directors and a focus on establishing strong governance for the future standalone companies [38][39] Q&A Session Summary Question: Top line performance for standalone KDP and contribution from U.S. Refreshment business - Management expects low double-digit EPS growth on a combined basis, with KDP standalone guidance of 4%-6% top line growth driven by U.S. Refreshment Beverages [45][46] Question: Existing KDP debt allocation across Future Bev versus Coffee Co - Existing KDP debt will remain with Beverage Company, while Global Coffee Co. will assume new debt related to the JDE Peet's acquisition [51][52] Question: Commodity headwinds in the coffee business - Year-over-year cost headwinds are expected to be most impactful in Q1, with relief anticipated in the latter part of the year [59][60] Question: Organic sales growth in the first quarter - Management anticipates some pressure in Q1 due to retail inventory adjustments, but expects good visibility for EPS growth in Q2 and acceleration in the back half [66][68] Question: Strategy on partner brands and willingness to add more brands - KDP aims for a balanced approach between core brand growth and partnerships, with flexibility to capture white space opportunities through buy, build, or partner strategies [70]

Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, driven by approximately 5 percentage points of growth from the base business and nearly 4 points from GHOST contributions [8] - EPS grew by 7% for the year, with Q4 EPS growth at 2% [9][28] - Gross margin contracted by 150 basis points due to elevated inflationary pressures, partially offset by net price realization and productivity savings [28] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages was the standout performer, delivering double-digit net sales growth and high single-digit operating income growth [9] - U.S. Coffee segment revenue increased by 4%, but operating income declined at a high-single-digit rate due to cost pressures [16][31] - International segment saw mid-teens constant currency net sales growth and 20% operating income growth, driven by strong performance in Mexico and Canada [20][32] Market Data and Key Metrics Changes - The carbonated soft drink category remains strong, with KDP gaining market share in Dr Pepper for the ninth consecutive year [9] - The multi-branded energy platform, including C4, GHOST, Bloom, and Black Rifle, outperformed the category, with market share increasing nearly 1.5 points [14] - The coffee category trends remain resilient, with the Keurig compatible pod category growing retail dollars at a mid-single-digit rate in Q4 [16] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit full-year EPS growth, closing and integrating JDE Peet's, and establishing two standalone businesses [6][25] - The company is advancing work streams to capture initial deal-related synergies and appoint independent leadership teams for the two new companies [8] - KDP plans to leverage its flexible build-by-partner model to expand into additional white space areas over time [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth in 2026, despite anticipated cost pressures in the first half of the year [20][37] - The company is navigating a dynamic operating environment while laying the groundwork for long-term success through strategic investments [5][19] - Management acknowledged that while Q4 was softer for U.S. Coffee, they are investing to position the business for long-term success [16][66] Other Important Information - The company reported free cash flow of $1,519 million in 2025, with expectations to increase to approximately $2 billion in 2026 [34] - KDP is refining its financing structure for the JDE Peet's acquisition, increasing the size of its convertible preferred equity raise to $4.5 billion [35] - The board is evolving with new independent directors and a restructuring of committees to align with best practices [41][43] Q&A Session Summary Question: Top line performance for standalone KDP - Management expects low double-digit EPS growth on a combined basis, with KDP standalone guidance of 4%-6% top line growth [47] Question: Existing KDP debt allocation - Existing KDP debt will stay with Beverage Company, while Coffee Co. will assume $5 billion of existing JDE Peet's debt [54] Question: Energy category growth - Management believes the energy category has multiple structural growth drivers and expects to gain shelf space relative to other LRBs [56] Question: Coffee business commodity headwinds - Cost headwinds are expected to be most impactful in Q1, with relief anticipated in the latter part of the year [63] Question: Free cash flow thoughts for 2026 - Management expects standalone KDP free cash flow to increase in 2026 to approximately $2 billion [34]

Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, with approximately 5 percentage points of growth from the base business and nearly 4 points from GHOST contributions [5] - EPS grew by 7%, while Q4 EPS increased by 2% despite cost pressures and higher reinvestment spending [5][25] - For the full year, net sales grew by 8.6%, operating income by 4.9%, and EPS by 7.3% on a constant currency basis [25] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages saw double-digit net sales growth and high single-digit operating income growth, with net sales growing 11.5% in Q4 [5][26] - U.S. Coffee segment revenue increased by 4%, but operating income declined at a high single-digit rate due to cost pressures [12][28] - International segment delivered mid-teens constant currency net sales growth and 20% operating income growth, driven by strong performance in Mexico and Canada [17][30] Market Data and Key Metrics Changes - The U.S. Refreshment Beverages market showed strong performance, with market share gains in key brands like Dr Pepper [5][11] - The energy drinks category grew significantly, with KDP's multi-branded energy platform gaining nearly 1.5 points in market share [11] - The coffee category remained resilient, with the Keurig compatible pod category growing retail dollars at a mid-single-digit rate [12] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit EPS growth, integrating JDE Peet's, and establishing two standalone businesses [2][3] - The company is advancing its operational readiness for separation into Beverage Co. and Global Coffee Co. by the end of 2026 [4] - Significant investments are planned in marketing and innovation to support long-term growth, particularly in the coffee segment [30][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth despite anticipated cost pressures in the first half of 2026 [34][36] - The company expects to navigate through inflationary pressures and retailer inventory adjustments, with a positive outlook for the second half of 2026 [36][66] - Management highlighted the importance of innovation and marketing investments to sustain growth across all segments [22][68] Other Important Information - The company reported free cash flow of $1.519 billion in 2025, with expectations to increase to approximately $2 billion in 2026 [32] - KDP is refining its financing structure for the JDE Peet's acquisition, including an increase in convertible preferred equity and a finalized Pod Manufacturing JV [32][33] - The board is evolving with new independent directors and a new governance structure to support the company's transformation [38][39] Q&A Session Summary Question: Can you provide context on the top line performance for standalone KDP, specifically regarding U.S. Refreshment? - Management expects low double-digit EPS growth on a combined basis, with U.S. Refreshment being a significant driver of growth [45] Question: What are the assumptions for the JDE Peet's business within the EPS contribution for 2026? - The guidance includes $8.5 billion-$8.7 billion of incremental revenue from JDE Peet's, contributing 6-7 percentage points to EPS [47] Question: How will existing KDP debt be allocated across Future Beverage and Coffee Co.? - Existing KDP debt will remain with Beverage Company, while Global Coffee Co. will assume new debt related to the acquisition [51] Question: What are the pricing plans in the coffee segment given commodity headwinds? - Management anticipates cost headwinds to peak in Q1, with pricing strategies focused on sustainable volume and mix-led growth [60] Question: How do you see organic sales growth in Q1 in the context of full year guidance? - There will be some pressure in Q1 due to retail inventory adjustments, but visibility for EPS growth in Q2 is strong [66]

Financial Data and Key Metrics Changes - In 2025, net sales increased by almost 9%, driven by approximately 5 points of growth from the base business and nearly 4 points from GHOST contributions [7] - EPS grew by 7% for the year, with Q4 EPS growth at 2% [8][10] - Gross margin contracted by 150 basis points due to elevated inflationary pressures, partially offset by net price realization and productivity savings [27] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages was the standout performer, delivering double-digit net sales growth and high single-digit operating income growth [8] - U.S. Coffee segment revenue increased by 4%, but operating income declined at a high-single-digit rate due to cost pressures [14][31] - International segment saw mid-teens constant currency net sales growth and 20% operating income growth, driven by strong performance in Mexico and Canada [19][32] Market Data and Key Metrics Changes - The carbonated soft drink category remains strong, with KDP gaining market share in Dr. Pepper for the ninth consecutive year [8] - The multi-branded energy platform, including C4 and GHOST, outperformed the category, with market share increasing nearly 1.5 points [12] - The coffee category trends remain resilient, with the Keurig compatible pod category growing retail dollars at a mid-single-digit rate [15] Company Strategy and Development Direction - KDP is focused on three objectives for 2026: delivering low double-digit full-year EPS growth, closing and integrating JDE Peet's, and establishing two standalone businesses [5][24] - The company is advancing work streams to capture initial deal-related synergies and appoint independent leadership teams for the two new companies [6] - KDP plans to leverage its flexible build-by partner model to expand into additional white space areas over time [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit EPS growth in 2026, despite anticipated cost pressures in the first half of the year [19][36] - The company expects to navigate through inflationary pressures while investing in long-term growth initiatives [16][61] - Management acknowledged that Q1 EPS may be under pressure due to cost headwinds and retailer inventory adjustments, but expects improvement in the second half of the year [38][66] Other Important Information - The company announced a refined financing structure for the JDE Peet's acquisition, increasing the size of the convertible preferred equity raise to $4.5 billion [34] - KDP's free cash flow for 2025 was $1,519 million, with expectations to increase to approximately $2 billion in 2026 [33] - The board is evolving with new independent directors and a new chair to support the company's transformation [40][41] Q&A Session Summary Question: Can you provide context on the top line performance for standalone KDP? - Management expects low double-digit EPS growth, with KDP standalone guidance of 4%-6% top line growth driven by U.S. Refreshment Beverages [45][46] Question: What are the assumptions for the JDE Peet's business in 2026? - The guidance includes $8.5 billion-$8.7 billion of incremental revenue from JDE Peet's, contributing to a 6-7 percentage point EPS benefit [46][47] Question: How will existing KDP debt be allocated across the future Beverage Co. and Coffee Co.? - Existing KDP debt will remain with Beverage Co., while Coffee Co. will assume new debt related to the acquisition [50][51] Question: What is the outlook for the energy category? - Management is optimistic about the energy category's growth, expecting continued distribution expansion and household penetration gains [52][54] Question: When should we expect relief from commodity headwinds in the coffee business? - Cost headwinds are expected to peak in Q1, with improvements anticipated in the second half of 2026 [58][61] Question: What is the strategy regarding partner brands during the transition? - KDP aims to maintain a balance between core brand growth and partnerships, leveraging a flexible buy-build partner model to capture growth opportunities [67]

MINNEAPOLIS, Feb. 24, 2026 /PRNewswire/ -- Genuine Marketing Group Inc. (OTC: GMGZ)Â is pleased to announce the launch of its official ZPTAG teaser campaign with ZPTAG QR codes natively printed on MAISON BLOOM hemp infused seltzer cans sold in Minnesota and Wisconsin. Available at liquor stores, convenience stores and restaurants throughout Minnesota and at participating Ignite Dispensary locations in Wisconsin, MAISON BLOOM and GMG are joining forces utilizing ZPTAG to show consumers, retailers and distrib ...

Q4 and FY 2025 Results February 24, 2026 1 Forward looking statements Certain statements in this Presentation (this "Presentation") of Keurig Dr Pepper Inc. (the "Company" or "KDP"), including statements relating to the Company's contemplated acquisition (the "Acquisition") of JDE Peet's, N.V. ("JDE Peet's"), the structured manufacturing JV with Apollo Management Holdings, L.P. (together with its affiliates, "Apollo") as the lead investor, in partnership with Kohlberg Kravis Roberts & Co., L.P. (together wi ...

Core Viewpoint - Keurig Dr Pepper forecasts strong annual results driven by resilient demand for its carbonated beverages and energy drinks, supported by new flavors and marketing efforts [1][2]. Group 1: Financial Performance - The company reported a 11.5% increase in quarterly sales in its domestic refreshment beverages segment, which is its largest revenue generator [3]. - The coffee business also saw a growth of 3.9% compared to the previous year [3]. - For the fourth quarter, Keurig posted net sales of $4.50 billion, surpassing estimates of $4.36 billion, and an adjusted profit of 60 cents per share, slightly above the expected 59 cents [5]. Group 2: Market Strategy - Keurig has been introducing new flavors, such as Dr Pepper Creamy Coconut, and leveraging TikTok trends to attract more consumers [3]. - The company is also preparing for the acquisition of Dutch coffee and tea group JDE Peet's, which is expected to enhance its appeal to younger consumers [4][5]. Group 3: Future Outlook - Keurig expects annual net sales to range between $25.9 billion and $26.4 billion, significantly higher than analysts' estimates of $17.23 billion [5]. - The company anticipates annual adjusted profit growth in the low-double-digit range on a constant currency basis, exceeding the estimated 6.4% rise [5].

Core Viewpoint - Keurig Dr Pepper has secured additional financing for its €15.7bn ($18.36bn) acquisition of JDE Peet's and plans to split the combined business into two entities, Beverage Co. and Global Coffee Co. [1][2] Financing Details - The convertible preferred equity investment for Beverage Co. has increased from $3bn to $4.5bn, eliminating the need for a partial IPO [1][2] - The funding round is co-led by Apollo and KKR, with participation from T Rowe Price Investment Management and other long-term investors [2][3] - The terms of the preferred equity include an initial conversion price of $37.25 per share and a 4.75% preferred dividend rate [3] Business Structure and Operations - Keurig Dr Pepper plans to separate into Beverage Co. and Global Coffee Co. after closing the acquisition, aiming to finalize the transaction by early April and complete the split by year-end [2] - Beverage Co. will operate in North America's $300bn refreshment beverage market with $11bn in annual sales, while Global Coffee Co. is projected to become the world's largest pure-play coffee company with approximately $16bn in combined annual net sales [4] Financial Projections - The acquisition will be financed through approximately $9bn of long-term debt, $8.5bn of equity capital, and the assumption of about $5bn of existing JDE Peet's bonds [6] - The company expects a combined net leverage of approximately 4.5x at close and projects the deal to be about 10% earnings-per-share accretive in the first full year [6] - The updated plan adds $1.5bn of cost-efficient equity capital, supporting rapid deleveraging and positioning both entities as successful, investment-grade companies [5]

Core Insights - JDE Peet's experienced strong financial performance in 2025, achieving significant top-line growth and operational profit despite challenges from green coffee inflation [2][5][8] Financial Performance - Total sales for 2025 reached EUR 9.9 billion, reflecting a 15.3% organic growth driven by a 19.5% price increase, while volume/mix decreased by 4.3% [12][14] - Organic adjusted EBIT increased by 1.2% to EUR 1.3 billion, with reported sales up 12.3% [7][14] - Free cash flow was EUR 1,130 million, and net leverage improved to 2.3x [7][17] - Underlying profit for the period rose by 64.1% to EUR 1,196 million, with underlying EPS increasing to EUR 2.46 [16][14] Strategic Initiatives - The company launched the "Reignite the Amazing" strategy, focusing on three key brands: Peet's, L'OR, and Jacobs, along with nine local icons, aimed at sustainable value creation [3][6] - Progress was made in simplifying the organization and advancing a EUR 500 million cost savings program [3][7] - New product launches included Dubai Chocolate and Peet's ready-to-drink Cold Brew Coffee, enhancing consumer engagement [4][19] Market Developments - The acquisition process with Keurig Dr Pepper (KDP) is on track, with a public cash offer of EUR 31.85 per share supported by JDE Peet's Board of Directors [9][10] - The company is committed to maintaining affordability while managing cost inflation, which totaled EUR 1.6 billion in 2025 [8][16]