Keurig Dr Pepper explores inorganic growth opportunities after intense internal focus

At the same time, the beverage company is building out a strong foundation to support its scaling business by ensuring the management team has sufficient bandwidth, improving distribution capabilities and rethinking the best way to support fast-growing ecommerce, executives told investment analysts yesterday during the company’s first quarter earnings call.

The shift comes as CEO Bob Gamgort prepares to pass the baton on CFO Ozan Dokmecioglu – allowing Gamgort to focus more on inorganic opportunities as he moves into his new role as executive chairman.

“I am certainly looking forward to being able to have more space”​ to work on inorganic opportunities and particularly mergers & acquisitions and partnerships, Gamgort said.

I have explained that during the past 2.5 years the company has been “very intensely operationally focused, very much managing… one crisis to the next,”as have many in the food and beverage industry.

And, I have added, “While that’s critically important and is the right priority it didn’t leave a lot of time to think about and work on the strategic aspects of the business that require a significant amount of time, investment, patience and even relationship building to be able to do that properly.”

Three growth opportunities

Thinking ahead to the types of deals and arrangements that would most likely catch Keurig Dr Pepper’s attention, Gamgort said he sees three primary opportunities.

The first is developing a range of partnerships that don’t require a change in ownership, such as Keurig Dr Pepper’s recently reinstated arrangement with Community Coffee announced yesterday which later this year will reunite the family-owned retail coffee brand as a Keurig partner brand.


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