Keurig Dr Pepper (KDP) is focusing on affordability to drive growth and household penetration in the coffee market after a slower than expected recovery in post-pandemic coffee sales. While at-home coffee consumption has seen a gradual increase in the latter half of 2023, the overall rebound remains sluggish, particularly in the US. CEO Robert Gamgort plans to introduce more cost-effective at-home coffee machines and continue marketing initiatives, including product development with actor Kevin Costner for the Green Mountain coffee brand. Despite a 9.9% decline in Q4 net sales for its US coffee business, KDP is optimistic about potential growth, citing the 40 million Keurig households and the opportunity to convert 50 million more. Full-year results showed net sales up by 10.8%, but net income fell by 33.1%, indicating a mixed performance amidst a challenging recovery for the at-home coffee sector.
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