Foodservice

Coffee sales dip clouds Keurig Dr Pepper's Q1 growth

Photo: piter2121 - stock.adobe.com

April 30, 2025

Keurig Dr Pepper reported a 4.8% increase in overall net sales for the first quarter of 2025, but saw a 3.7% decline in coffee sales, according to a Food Business News report. The decrease in coffee revenue was attributed to uncertainty surrounding tariffs and commodity pricing volatility, coupled with cautious consumer spending.

"Q1 was a challenging quarter with a 3.7% net sales decline and profit pressure," Timothy Cofer, KDP CEO, told the news outlet. In response to inflationary pressures and tariff-related impacts on green coffee, the company implemented price increases. However, Cofer highlighted bright spots within the coffee segment, including a 30% increase in Lavazza K-Cup sales and the growth of La Colombe ready-to-drink coffees.

The company is also emphasizing the value proposition of its premium at-home coffee brands as a cost-effective alternative to coffee shops. Meanwhile, Keurig Dr Pepper's US Refreshment Beverages segment saw an 11% net sales increase, driven by the launch of Dr Pepper Blackberry, the success of C4 energy drinks and the integration of Ghost energy beverages.