Keurig Dr Pepper (KDP) has reported a net sales increase of 4.5% to $11.62 billion in 2020, as performance of its coffee pods and branded soft drinks remained strong amid Covid-19.
The company witnessed a strong finish to 2020, with its fourth-quarter net sales rising by 6.4% to $3.12 billion, driven by market share gains across its portfolio and more households using the Keurig system.
Operating income stood at $2.48 billion for the full-year, compared to $2.38 billion last year, representing a 4.3% increase driven by strong sales.
In KDP’s coffee systems unit, net sales increased 4.7% to $4.43 billion for the full-year and grew by 9.1% in Q4. For 2020, KDP saw the unit record higher volumes of 7.2% due to more consumers using coffee pods at-home, while partially offset by a decline in away-from-home sales.
In the year ended 31 December 2020, US households regularly using a Keurig brewer increased approximately 10% to 33 million households.
For the company’s packaged beverages division, net sales rose 8.5% to $5.36 billion, reflecting 8.2% volume growth. The unit witnessed market share growth across the entire portfolio, with particular strength in carbonated soft drinks, premium unflavoured water and juice including its Dr Pepper, Canada Dry, 7UP, Snapple tea and Core brands.
Meanwhile, KDP’s beverage concentrates unit saw its net sales fall 6.3% to $1.33 billion, driven by the negative impact of Covid-19 on the fountain foodservice business.
KDP’s Latin America beverages witnessed its net sales drop by 5.9% to $497 million due to unfavourable foreign currency translation and the impact of the pandemic on Mexico’s volumes.
Keurig Dr Pepper chairman and CEO, Bob Gamgort, said: “KDP again delivered on its annual financial commitments in 2020, capped by a strong fourth quarter with exceptional growth in net sales that was driven by market share gains across our portfolio and accelerated household adoption of the Keurig system.
“While we expect 2021 to be another challenging and unpredictable year, we’re confident in our ability to deliver the final year of the merger commitments communicated in 2018.”
In 2021, KDP expects to deliver another year of strong growth and exceed its three-year merger target of 2-3% average annual growth.
© FoodBev Media Ltd 2022
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