
Cola and coffee have some notable parallels: They both tend to be used for a caffeine jolt. They’re similar in color, and they appear as regular staples in the pantries or refrigerators of a vast majority of households. They also constitute the backbone of the beverage industry. Yet the ways that the dominant actors in these two beverage markets tend to develop, test, market, and sell their products differ vastly, due to the distinctive characteristics and demographics that define each offering’s most enthusiastic consumers.
Such distinctions arguably represent the rationale for the decision by Keurig Dr Pepper to split up its corporate organization into separate divisions, each of which will take responsibility for different subsidiary brands. At the same time as it is reorganizing its existing structure, the corporation is expanding, such as through its acquisition of JDE Peet’s. That company maintains multiple coffee-related brands, the most famous of which is the store franchise Peet’s Coffee. Accordingly, JDE will merge with Keurig’s existing coffee-oriented business division, which currently centers mainly around at-home brewing tools. Meanwhile, the Dr Pepper side will retain all soft drink subsidiaries, including 7UP, Sunkist, and Snapple. It anticipates being the source for most of the parent company’s growth in the near future.
But strategically targeting coffee versus cola drinkers separately cannot justify another, similar corporate breakup happening around the same time. That is, shortly after the first reports about Keurig Dr Pepper’s plans were made public, Kraft Heinz announced its own plans to divvy up its operations, in a direct reversal of the merger of these two food and beverage companies—some of the largest in the world—that occurred back in 2015. Originally conceived of to boost the overall value of one unified company, which would gain unparalleled, combined market share, the merger seemingly has not quite worked out as planned.
Instead, for many of the brands within the combined Kraft Heinz portfolio, market share and revenues have declined, a trend that some industry experts blame on the conglomerate’s spending cuts. To stem such effects, the company’s current leadership has chosen to reverse course, split up the divisions, and, ideally, ensure that both companies can retain more value for the future.
Here again, the organizational restructuring into separate divisions is not the only strategic move being made. But unlike Keurig Dr Pepper’s acquisitional approach, Kraft Heinz has been selling off some of its food divisions to competitors. In so doing, it demonstrates its strategic decision to prioritize its condiment business, relying on the continued success it achieves through sales of Heinz ketchup and Grey Poupon, current bestsellers in their respective markets.
Discussion Questions
- Compare the strategic restructurings of these two global conglomerates. What approach is each company taking, and which seems more likely to succeed?
- What are the implications of changes at the corporate level for consumers’ experiences with these products? Are they likely to alter the quality or price of the items people buy, for example?
Sources: Lauren Hirsch and Julie Creswell, “Keurig Dr Pepper to Acquire Peet’s in $18 Billion Deal,” The New York Times, August 25, 2025; Lauren Hirsch and Julie Creswell, “Kraft Heinz to Break Up Its Food Businesses,” The New York Times, September 2, 2025; Sarah Zimmerman, “The Biggest Food and Beverage M&A Deals in 2025,” Food Dive, December 23, 2025








