Keurig Dr. Pepper reported a 5.3% year-over-year increase in coffee systems sales in its third quarter.
Sales from the Keurig coffee system, including coffee pods and brewers, registered $1.16 billion in the company’s third quarter, compared to $1.10 billion in the year-ago period.
A volume/mix increase of 5.7% in the quarter reflected K-cup pod volume growth of 6.3% and brewer volume growth of 2.2%, despite lapping growth of 34% in the year-ago quarter, according to Keurig Dr. Pepper. The pod volume reflected continued strong growth in the at-home business and improving trends in the away-from-home business, the company noted although the return to offices continues to be slow and the away-from-home business remains well below pre-pandemic levels.
Keurig Dr. Pepper said brewer volume growth in the quarter, despite the comparison to the very strong brewer shipments in the year-ago period, reflected continued strong retail consumption driven by the successful brewer
GAAP operating income from Keurig coffee systems increased year over year by 4.4% to $334 million in the third quarter of 2021, compared to $320 million in the year-ago period. The company cited strong net sales growth, continued productivity and merger synergies, partially offset by inflation in input costs, logistics and manufacturing and higher marketing investment in the quarter.