KDP

Keurig Dr Pepper Inc.

Consumer Staples · Beverages
1
/5
Very Low
BOTTOM LINE

Keurig Dr Pepper sells physical beverages to thirsty humans — AGI cannot disrupt the need to drink, making this one of the most AGI-proof businesses in the market.

BUSINESS OVERVIEW

Keurig Dr Pepper is a major American beverage company formed from the 2018 merger of Keurig Green Mountain and Dr Pepper Snapple Group. The company has a diversified portfolio spanning coffee systems (Keurig single-serve brewers and K-Cup pods), carbonated soft drinks (Dr Pepper, 7UP, Canada Dry, Sunkist, A&W, Squirt), juice and juice drinks, water, teas, mixers, and other beverages. KDP operates through a multi-channel distribution system serving retailers, restaurants, vending, and e-commerce. The company is the #3 non-alcoholic beverage company in the US by volume behind Coca-Cola and PepsiCo.

REVENUE SOURCES
Keurig single-serve coffee brewers and K-Cup podsDr Pepper (carbonated soft drink)7UP, Canada Dry, A&W, Sunkist, Squirt (CSDs)Snapple, Mott's, Clamato (juice/juice drinks)Core, Bai (enhanced water/functional beverages)Green Mountain, The Original Donut Shop, other coffee brandsLicensed K-Cup partnerships (Starbucks, Dunkin', Peet's, etc.)
PRIMARY CUSTOMERS

Retail grocery stores, mass merchandisers (Walmart, Target, Costco), convenience stores, foodservice operators (restaurants, hotels, cafeterias), vending machine operators, e-commerce platforms, and offices/businesses purchasing Keurig brewing systems and K-Cup pods. KDP reaches consumers through virtually all major retail and foodservice channels.

AGI EXPOSURE ANALYSIS

AGI cannot replace coffee, soda, juice, or water. Keurig Dr Pepper manufactures and distributes physical beverages — Dr Pepper, 7UP, Snapple, Green Mountain Coffee, K-Cup pods, and dozens of other brands. People drink beverages because they are thirsty, need caffeine, or enjoy the taste. No amount of artificial intelligence can substitute for the physical act of drinking a cold Dr Pepper. KDP's customers are grocery stores, convenience stores, restaurants, offices, and individual consumers. Beverage consumption is one of the most fundamental human needs and pleasures. Even if AGI eliminates every knowledge worker job on the planet, people will still drink coffee in the morning and soda with lunch.

RISK FACTORS
  • AGI-optimized competitors could improve supply chain and marketing efficiency, increasing competitive pressure
  • AGI could enable hyper-personalized beverage products from new entrants
  • Economic disruption from AGI transition could temporarily reduce discretionary beverage spending
RESILIENCE FACTORS
  • Beverages are physical products satisfying biological needs — completely AGI-proof
  • Brand loyalty in beverages is deeply emotional and habitual
  • K-Cup razor/blade model creates recurring revenue from physical consumables
  • Distribution network and shelf space are physical competitive moats
  • Beverage consumption is recession-resistant and technology-change-resistant
  • Product portfolio spans coffee, soft drinks, juice, and water — maximum diversification