We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can KDP's Energy Push & Coffee Revival Drive Sustainable Growth?
Read MoreHide Full Article
Key Takeaways
Keurig Dr Pepper posted strong Q2 results despite tariffs, costs and cautious consumer spending.
KDP's energy brands topped $1B in sales with 30% Q2 growth, now holding 7% of the U.S. energy market.
Coffee improved with La Colombe RTD and new brewers, while wellness drinks expand KDP's portfolio.
Keurig Dr Pepper Inc. (KDP - Free Report) has delivered strong results in the second quarter of 2025, showing that its mix of classic brands and new ventures are working well. The company is facing challenges like tariffs, higher costs and careful spending by consumers, but it continues to grow by focusing on innovation, expansion and customer demand. The big question now is whether its push into energy drinks and efforts to revive its coffee segment can drive long-term sustainable growth.
One of the most exciting parts of KDP’s strategy is its energy drink portfolio. With brands like GHOST, C4, Bloom and Black Rifle, the company has quickly built more than $1 billion in annual sales and captured 7% of the U.S. energy market. Just a few years ago, its share was less than 1%. Sales in this category grew more than 30% in the second quarter, and management is confident that these brands can help the company secure a double-digit share of the fast-growing $26 billion energy category.
At the same time, KDP is still leaning on its strong traditional brands, especially Dr Pepper. New flavors, such as Dr Pepper Blackberry, have become bestsellers, and partnerships like its summer movie tie-ins keep consumer excitement high. The company has been focused on improving its coffee segment, which showed better performance in second quarter 2025. Innovations like La Colombe ready-to-drink coffee and new Keurig brewers are attracting younger and premium customers, though challenges like inflation and tariffs continue to weigh on results.
Beyond energy and coffee, KDP is expanding into new categories that match changing consumer tastes. For example, the company acquired Dyla Brands, which makes powdered mixes and water enhancers, tapping into a growing $4 billion market. It also plans to launch Bloom Pop, a prebiotic soda that combines flavor with gut health benefits. By entering wellness-focused spaces like hydration, prebiotics and functional drinks, KDP is positioning itself for future demand and reducing reliance on any one category.
Looking ahead, KDP’s strategy is clear: balance growth from its core brands with new opportunities in fast-growing categories. The company still faces risks from tariffs, commodity costs and cautious consumer spending, but its diverse portfolio gives it flexibility. If energy and coffee continue to gain momentum while innovations in wellness beverages succeed, KDP has a strong chance to keep building sustainable growth in the long term.
Comparing KDP With KO, PEP & MNST
The Coca-Cola Company (KO - Free Report) continues to build on the strength of its iconic brands while leaning into innovation to stay relevant with changing tastes. Its zero-sugar offerings are gaining traction, and the company is also pushing into ready-to-drink coffee, teas and functional beverages to capture more occasions. By focusing on affordability in some markets and premium innovation in others, Coca-Cola is showing its ability to balance tradition with modern consumer needs.
PepsiCo, Inc. (PEP - Free Report) benefits from having both beverages and snacks, giving it a wide base for growth. The company is putting more emphasis on healthier product options, from low-sugar sodas to baked snacks, while also using strong marketing campaigns to connect with younger consumers. PEP’s global distribution and investment in digital tools help it stay resilient even in uncertain economic conditions.
Monster Beverage Corporation (MNST - Free Report) remains one of the strongest brands in the energy drink space and continues to expand its presence worldwide. The company is driving momentum through bold new flavors and packaging that appeal to loyal energy drink fans. MNST’s partnership with Coca-Cola also provides the company with powerful distribution, helping it compete effectively against both established giants and new challengers in the fast-growing energy market.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can KDP's Energy Push & Coffee Revival Drive Sustainable Growth?
Key Takeaways
Keurig Dr Pepper Inc. (KDP - Free Report) has delivered strong results in the second quarter of 2025, showing that its mix of classic brands and new ventures are working well. The company is facing challenges like tariffs, higher costs and careful spending by consumers, but it continues to grow by focusing on innovation, expansion and customer demand. The big question now is whether its push into energy drinks and efforts to revive its coffee segment can drive long-term sustainable growth.
One of the most exciting parts of KDP’s strategy is its energy drink portfolio. With brands like GHOST, C4, Bloom and Black Rifle, the company has quickly built more than $1 billion in annual sales and captured 7% of the U.S. energy market. Just a few years ago, its share was less than 1%. Sales in this category grew more than 30% in the second quarter, and management is confident that these brands can help the company secure a double-digit share of the fast-growing $26 billion energy category.
At the same time, KDP is still leaning on its strong traditional brands, especially Dr Pepper. New flavors, such as Dr Pepper Blackberry, have become bestsellers, and partnerships like its summer movie tie-ins keep consumer excitement high. The company has been focused on improving its coffee segment, which showed better performance in second quarter 2025. Innovations like La Colombe ready-to-drink coffee and new Keurig brewers are attracting younger and premium customers, though challenges like inflation and tariffs continue to weigh on results.
Beyond energy and coffee, KDP is expanding into new categories that match changing consumer tastes. For example, the company acquired Dyla Brands, which makes powdered mixes and water enhancers, tapping into a growing $4 billion market. It also plans to launch Bloom Pop, a prebiotic soda that combines flavor with gut health benefits. By entering wellness-focused spaces like hydration, prebiotics and functional drinks, KDP is positioning itself for future demand and reducing reliance on any one category.
Looking ahead, KDP’s strategy is clear: balance growth from its core brands with new opportunities in fast-growing categories. The company still faces risks from tariffs, commodity costs and cautious consumer spending, but its diverse portfolio gives it flexibility. If energy and coffee continue to gain momentum while innovations in wellness beverages succeed, KDP has a strong chance to keep building sustainable growth in the long term.
Comparing KDP With KO, PEP & MNST
The Coca-Cola Company (KO - Free Report) continues to build on the strength of its iconic brands while leaning into innovation to stay relevant with changing tastes. Its zero-sugar offerings are gaining traction, and the company is also pushing into ready-to-drink coffee, teas and functional beverages to capture more occasions. By focusing on affordability in some markets and premium innovation in others, Coca-Cola is showing its ability to balance tradition with modern consumer needs.
PepsiCo, Inc. (PEP - Free Report) benefits from having both beverages and snacks, giving it a wide base for growth. The company is putting more emphasis on healthier product options, from low-sugar sodas to baked snacks, while also using strong marketing campaigns to connect with younger consumers. PEP’s global distribution and investment in digital tools help it stay resilient even in uncertain economic conditions.
Monster Beverage Corporation (MNST - Free Report) remains one of the strongest brands in the energy drink space and continues to expand its presence worldwide. The company is driving momentum through bold new flavors and packaging that appeal to loyal energy drink fans. MNST’s partnership with Coca-Cola also provides the company with powerful distribution, helping it compete effectively against both established giants and new challengers in the fast-growing energy market.