Keurig Dr Pepper Sees Split in Coffee, Energy Beverages -- WSJ

By Laura Cooper

Energy drinks are putting more pep in Keurig Dr Pepper's business than java.

Green coffee prices and higher costs from tariffs weighed on the company's U.S. coffee business in the second quarter, Chief Executive Tim Cofer said in a call with analysts Thursday. On the top line, he said the business was also hurt by a broader slowdown in the category and a shift to private-label options.

"U.S. coffee is definitely under a bit of pressure," Cofer said.

At the same time, the company's energy drink business grew. Keurig Dr Pepper said it has grown its footprint from 1% market share four years ago to 9% today.

Younger consumers are increasingly choosing energy drinks over coffee for cost reasons.

The divergence comes ahead of a planned separation of Keurig Dr Pepper to create independent coffee and refreshment beverage companies.

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August 06, 2026 11:17 ET (15:17 GMT)