Keurig Dr Pepper (KDP) $KDP (-0,8%) is a US group that is active in both the soft drinks and coffee markets. The company sells well-known brands such as Dr Pepper, 7UP, Snapple and the Keurig coffee system with machines and capsules. In contrast to Nespresso, which is clearly focused on premium coffee, KDP focuses on broad diversification between "cold" and "hot beverages".
The share price has recently suffered from the announcement to take over the European coffee manufacturer JDE Peet's and subsequently split KDP into two independent companies (coffee and soft drinks). Investors are concerned about the financing and complexity of this restructuring.
However, opportunities could arise in the long term: stronger international positioning in coffee, a clear focus for both divisions and cost synergies. The current dividend of USD 0.23 per quarter (USD 0.92 p.a.) is historically stable, but could come under pressure in the future due to the high capital requirements.
The share price has already been well punished and I am now slowly starting to build it up. Any further price fluctuations will be mixed with selective purchases to hopefully find a reasonable average price.
