Keurig launches price lock event amid rising coffee costs

BURLINGTON, Mass. - Keurig Dr Pepper (NASDAQ:KDP), a beverage giant with a market capitalization of $46.38 billion and impressive gross profit margins of 55.25%, has announced the launch of a "Price Lock Event" for new auto-delivery subscribers on Keurig.com, allowing customers to secure their K-Cup pod prices through the end of 2025. According to InvestingPro data, the company maintains a healthy dividend yield of 2.67% and has shown consistent revenue growth. The promotion, which runs from April 23 through May 23, aims to provide consumers with stability against the backdrop of increasing coffee bean prices.

The event comes as a response to recent macroeconomic conditions that have led to a significant surge in coffee bean prices. By locking in their prices, subscribers will be shielded from any future price hikes. Should prices fall, Keurig assures that subscribers will benefit from the lower rates. InvestingPro analysis indicates that net income is expected to grow this year, suggesting the company’s pricing strategy aligns with its financial outlook.

New subscribers who sign up during the event will receive a 25% discount and can maintain this reduced rate for the remainder of the year. The offer includes a flexible subscription model that allows customers to skip, swap, or cancel at any time without commitment.

Additionally, Keurig is catering to new customers without a brewing machine by offering a starter kit that includes one of their premium brewers—K-Cafe SMART, K Supreme Plus SMART, or K Supreme SMART—at a price of $49.99. This deal comes with the same 25% discount on orders and locked-in beverage pricing, provided the purchase of 32 boxes of beverages over 12 months.

Mark Gerner, VP of Keurig.com, stated, "With The Price Lock Event, we’re not just offering a promotion—we’re offering peace of mind. We believe everyone deserves coffee they love; at a price they can count on. This is our way of delivering consistency and care in every cup."

Keurig Dr Pepper is a major player in the North American beverage industry, with a diverse range of more than 125 owned, licensed, and partner brands. The company generated revenue of $15.52 billion in the last twelve months and holds a leading position in various beverage categories. The Price Lock Event is part of Keurig’s ongoing efforts to provide value and convenience to its customers. For detailed insights into KDP’s financial health and growth potential, including 7 additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive analysis and the latest Pro Research Report.

This news is based on a press release statement from Keurig Dr Pepper.

In other recent news, Keurig Dr Pepper reported its Q1 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.42 against the forecasted $0.38 and revenue of $3.64 billion compared to the anticipated $3.56 billion. The company experienced a net sales growth of 6.4% and a 10.5% increase in EPS, with strong performance in the US Refreshment Beverages segment despite challenges in the US Coffee segment. Additionally, HSBC upgraded Keurig Dr Pepper’s stock from Hold to Buy, raising the price target to $42.00, following the company’s robust first-quarter results and maintained full-year guidance. In another development, JAB Holding Company plans to sell 75 million shares of Keurig Dr Pepper, reducing its ownership to about 4.4% of the company’s outstanding common stock. Furthermore, Keurig Dr Pepper announced leadership changes, with Robert Gamgort transitioning to non-employee Chairman of the Board and the appointment of two new independent directors. These recent developments highlight Keurig Dr Pepper’s strategic adjustments and financial performance, drawing attention from investors and analysts alike.

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