Keurig Dr Pepper names coffee spinoff CEO for a third time

Summary:

• Keurig Dr Pepper has announced the appointment of Kimberly-Clark executive Russ Torres as the CEO of its coffee division in preparation for the upcoming split of its beverage and coffee units into two separate companies.
• Torres will begin his role at Keurig Dr Pepper on November 3, where he will lead the coffee business and oversee the integration of Keurig Dr Pepper and JDE Peet’s coffee operations. He will report to CEO Tim Cofer, who will head the beverage business post-separation.
• This marks the third selection Keurig Dr Pepper has made for this position since announcing the corporate split last year. Initially, CFO Sudhanshu Priyadarshi was chosen, followed by JDE Peet’s CEO Rafael Oliveira. Oliveira departed for another CEO role at Heineken over the summer.

Insight:

Keurig Dr Pepper acquired JDE Peet’s last year for $18 billion, with the intention of spinning off the coffee division into a standalone business. This decision received mixed reactions from investors. The newly formed Global Coffee Co. is projected to generate $16 billion in annual revenue from popular brands like Keurig, Peet’s, and Green Mountain Coffee Roasters.

Torres joins Keurig Dr Pepper from Kimberly-Clark, where he held the position of president and COO. His previous roles include group president of North America at Kimberly-Clark, where he played a key role in driving profitability. He also brings experience from Newell Brands, Bain & Company, and Mondelēz International.

“Russ is a seasoned leader with a strong track record of building consumer brands, leading global organizations through complex transformations, and delivering consistent results with high-performing teams. These qualities make him an ideal fit for Global Coffee Co.,” stated Pamela Patsley, Chair of Keurig Dr Pepper. “After an extensive global search, Russ emerged as the top candidate.”

In its most recent quarter, Keurig Dr Pepper reported $7.31 billion in net sales, a 75.6% increase year-over-year due to the acquisition of Peet’s. Excluding Peet’s, sales grew by 7.3%.