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Industry Focus

CG: Are Coffee and Soda the Right Pairing for Keurig Dr. Pepper?

Industry Focus

The Motley Fool

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4.6854 Ratings

🗓️ 11 December 2018

⏱️ 23 minutes

🧾️ Download transcript

Summary

A few months since closing its merger, Keurig Dr. Pepper reported its first quarter of results for the combined entity. The union of Keurig Green Mountain and Dr. Pepper Snapple created a company with $11 billion of annual revenue and a portfolio of 125 brands. How are things shaping up for the No. 3 beverage company? Tune in to find out. Stock: KDP

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Transcript

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0:00.0

Thanks to Slack for supporting the Molly Fool.

0:02.0

Slack is a collaboration hub for work that makes sure the right people in your team are always in the loop

0:06.3

and key information is always at their fingertips.

0:08.6

Learn more at slack.com.

0:10.0

Welcome to Industry Focus, a podcast it dives into a different sector of the stock market every day.

0:16.5

I'm your host, Vincent Shen. Joining me today via Skype from Orlando, Florida is Motley Fool contributor, Dan Klein. Dan, great to have you back.

0:25.2

How are you? Hey Vince, how you hold it up? I'm holding up okay. It's a long day so far,

0:31.9

but I'm glad you'd come on and record one last show with me.

0:35.0

It's always a pleasure.

0:38.0

So, listeners, my time with the industry focus team will end with next week's show. I think I finally got my

0:44.9

tears under enough control to dig into Cura Dr Pepper, ticker KDP. So Cura Green Mountain and Dr. Pepper Snappell announced in early 2018 that they'd be joining forces

0:57.9

another huge deal for J-E-B Holdings, which is kind of pulling all the strings with its control of Kyrie, which is acquired in 2016,

1:05.9

not to mention the many other businesses that it has purchased over the years, like Pete's

1:10.1

coffee, Caribou coffee, and bigger chains like Crispy Kreme, Panera Bread and all-bon pen.

1:15.4

So in fact, since the Karag Dr Pepper deal announcement, the company has already scooped up

1:21.7

big red, a smaller soft drink brand, and then core nutrition, a premium

1:25.6

water company, that was a over 500 million dollar deal.

1:29.2

And I remember at the time of this deal announcement, Dan, that we were a little puzzled by the decision for these two companies to come together.

1:36.0

You're bringing a non-coffee beverage company into the fold, but Kirk Dr. Pepper is now the third largest beverage company in North America.

1:44.4

So there is some strength I think in safety in having that sort of scale.

1:48.0

So let's bring us up to speed Dan.

1:50.7

If you had to get to some of the core strengths or what has jumped out to you about this combined entity so far, what is it?

...

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