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Keurig Dr Pepper Inc. KDP has displayed a robust graph, reflecting the continued rise in its share price in the past few months. The KDP stock’s momentum is attributed to the success of its strong brand strength and increased volumes, contributing positively to its performance. The company is making significant progress in reshaping its portfolio with the acquisition of GHOST Lifestyle, which is slated to strengthen its position in high-growth categories.
KDP is gaining from a sturdy Refreshment Beverages unit and solid market share growth. Its consumer-centric innovation model, portfolio expansion into high-growth categories, and solid route-to-market capabilities appear encouraging.
In the year-to-date period, the company’s shares have risen 5.2%, surpassing the broader Zacks Consumer Staples sector’s growth of 2.8% and the S&P 500 index’s decline of 14.1%.
At the current price of $33.60, shares of this Burlington, MA-based beverage company reflect a 12.2% discount to its recent 52-week high mark of $38.28. Also, the KDP stock mirrors an 11.6% premium from its 52-week low of $30.12.
Keurig’s YTD Price Performance
Image Source: Zacks Investment Research
KDP is trading above its 50-day moving average, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in the company’s financial health and prospects.
Strategies Support Keurig’s Rally
KDP’s consumer-focused innovation model, supported by scorecards tracking awareness, household penetration and loyalty, has been instrumental in driving the market share gains across key categories, such as liquid refreshment beverages, K-Cup pods and brewers. This sustained growth across major markets in the United States, Mexico and Canada reflects a strategic blend of innovation, brand-building and strong commercial execution, all underpinned by KDP’s continued emphasis on cost efficiency, productivity and disciplined capital deployment.
The company recently completed the acquisition and integration of assets in Arizona while expanding its U.S. distribution reach with new territories in Tennessee. In Mexico, Keurig’s company-owned Direct Store Delivery (DSD) network offers a competitive edge in a market heavily reliant on traditional trade. Recent investments to broaden system coverage, increase selling routes and expand cooler placements have fueled robust regional growth.
KDP’s strong brand portfolio and effective in-market execution contributed to a solid fourth quarter in 2024. Revenue growth was supported by category elasticity and strategic pricing. Net sales rose 5.2% year over year (6.2% on a constant-currency basis), driven by a 5.3% increase in the volume/mix and a 0.9% benefit from favorable pricing. Market share gains were fueled by product innovation, marketing activations, and contributions from strategic partnerships and transactions, namely Electrolit and C4.
As part of its ongoing portfolio transformation, Keurig is making notable progress through its acquisition strategy, including the recent majority stake purchase of GHOST Lifestyle LLC. Known for its rapidly expanding GHOST Energy drinks, the brand now joins KDP’s distribution ecosystem, with an option to acquire the remaining 40% by 2028. This move positions Keurig to capitalize on high-growth energy drink trends by integrating a rising brand into its scalable platform.
For 2025, KDP expects mid-single-digit growth in net sales and high-single-digit growth in adjusted EPS on a constant-currency basis, inclusive of the GHOST acquisition’s contributions. Strong performance is anticipated in the carbonated soft drink (CSD) segment, supported by dynamic marketing and a robust innovation pipeline. This includes the launch of Dr Pepper Blackberry, featuring the original 23 flavors enhanced with blackberry sweetness, and 7UP Tropical, a refreshing blend of mango and peach.
Notably, Dr Pepper Blackberry reaches a milestone as KDP’s first multi-format launch across bottles, cans, fountains and frozen channels, enhancing its availability and consumer reach.
Beyond CSDs, Electrolit remains a key growth engine. Since transitioning to KDP’s DSD network, the brand has seen accelerating momentum. In 2025, KDP plans to elevate Electrolit from a Hispanic-focused offering to a mainstream contender in the sports hydration aisle while expanding availability through multi-pack and zero-sugar formats, leveraging its DSD scale to fuel growth.
Meanwhile, momentum in away-from-home coffee continues to build, with management identifying significant opportunities ahead. As pricing power strengthens, aided by proactive measures taken to address green coffee inflation, KDP is well-positioned for another strong year of performance in 2025.