K-Cup maker Keurig Green Mountain’s deal announced Monday to acquire soft drinks giant Dr Pepper Snapple for $19 billion and equity considerations has shaken up the beverage industry and put various giants in the space on their toes, from Coca-Cola and PepsiCo to even Starbucks and Dunkin’ Donuts. A case in point, while Dr Pepper stock surged 22% on Monday, shares of Coca-Cola, PepsiCo, Starbucks and Dunkin’ Donuts all declined. The deal, orchestrated by Keurig's controlling holder, JAB Holding, is the largest-ever non-alcoholic beverage transaction on record, according to Dealogic data. “We are the first [major company] to combine hot and cold beverage portfolio at scale,” said Keurig Green Mountain CEO Bob Gamgort on a conference call. “Now they have drinks that are consumed throughout the day -- coffee in the morning and soft drinks for later in the day,” said “Darren Seifer, NPD food and beverage industry analyst, in an interview.

Source: Forbes January 30, 2018 13:52 UTC