Keurig Dr Pepper Takes Espresso Concentrate to 20 Countries

Keurig Dr Pepper will roll out liquid espresso concentrates in 20 countries across four of its global coffee brands, taking direct aim at a cold brew market worth $3.79 billion.

The products will appear under the L'Or, Jacobs, Kenco and Douwe Egberts brands in three flavors: Pure Black, Sweet Caramel and Rich Mocha. The company announced the global launch Oct. 8.

The move pits Keurig Dr Pepper against popular concentrates from Starbucks and Nescafe. It also marks the company's first CPG offering for liquid coffee brews it already supplies to offices, hotels and restaurants.

Why is Keurig Dr Pepper pushing into cold coffee?

Cold coffee is one of the fastest-growing global coffee trends, particularly among Generation Z, and Keurig Dr Pepper wants a bigger share of the customized-beverage occasion with the new retail line.

"Comparable launches have demonstrated the format's ability to attract consumers who are entirely new to the retail coffee category, highlighting its potential to expand the market while creating new occasions for existing coffee drinkers," Ricard Barri Valentines, chief marketing officer for Keurig Dr Pepper's coffee operation unit, said in a statement.

He added: "Above all, espresso concentrate is an open invitation to experiment, remix and make coffee your own."

The growth math supports the bet. The cold brew coffee market is expected to grow at a 17% rate through 2031, according to Mordor Intelligence.

How does the launch fit Keurig Dr Pepper's broader strategy?

Keurig Dr Pepper said the new capability showcases its platforming strategy: using one platform to scale innovation across its portfolio.

The launch lands as the company prepares to split its coffee and beverages business into two independent entities. Last week, it appointed Russ Torres to lead the coffee spinout, which will include Keurig, Peet's and Green Mountain Coffee Roasters.

Financials give the soon-to-be-separate coffee unit momentum. In Keurig Dr Pepper's most recent earnings report, net sales grew 75.6% year over year to $7.31 billion, driven primarily by the Peet's acquisition. Excluding Peet's, sales grew 7.3%.

The espresso concentrate line gives the coffee business a global, Gen Z-focused growth product to carry into the split — and a direct challenge to Starbucks and Nescafe on the concentrate shelf.