On March 18, 2026, members of Teamsters Local 528 voted overwhelmingly to authorize a strike at Keurig Dr Pepper’s facilities in Norcross and Union City, Georgia. The vote, which saw more than 90% of the union’s 150‑plus drivers and warehouse workers reject the company’s last‑best‑and‑final offer by a 13‑to‑1 margin, gives the union the legal right to strike if a settlement is not reached before the strike date.
The authorization signals a potential disruption to production and distribution at the two plants. A strike could halt the manufacturing of Keurig’s coffee pods and other beverage products, delaying shipments to retailers and customers in the southeastern United States. The resulting supply‑chain interruption could pressure the company’s revenue and margin performance, especially in the U.S. Coffee segment that already faces cost‑inflation headwinds.
Keurig Dr Pepper reported full‑year 2025 results on February 24, 2026, showing an 8.2% increase in net sales to $16.6 billion and adjusted diluted earnings per share of $2.05, a 7% rise. The company guided for double‑digit adjusted EPS growth in 2026, citing the ongoing acquisition of JDE Peet’s and progress toward a planned separation into two independent companies. The acquisition, priced on March 12, 2026, is expected to close in April and is intended to strengthen the company’s global coffee and beverage portfolio.
Segment analysis reveals that U.S. Refreshment Beverages and International divisions drove the majority of the revenue growth, while the U.S. Coffee segment experienced a decline in pod and brewer shipments. Operating income in the coffee segment fell as inflationary pressures pushed up raw‑material costs, offsetting gains from higher sales volumes in the other segments. The company’s management highlighted that cost‑control initiatives and productivity savings helped maintain overall profitability despite these segment‑specific challenges.
CEO Tim Cofer emphasized that 2025 was a “strong year” and that the company would build on its momentum in 2026 by integrating JDE Peet’s and advancing the separation plan. He noted that the company’s “agility” and “winning innovation” would support continued growth, even as it navigates the labor dispute and other operational headwinds.
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