Keurig Dr. Pepper reported net second-quarter sales from its coffee systems gained 8.5% year over year to $1.2 billion, compared to $1.1 billion for the same period in 2021.
Net sales from coffee systems for the period on a constant currency basis increased year over year by 9.1%, driven by a 5.8% increase in net price realization and a 3.3% increase in volume/mix. The company cited the benefits of early completion of its coffee recovery program, which it reported enabled KDP to begin to rebuild retailer and partner inventories and restore customer service levels.
The higher net price realization of 5.8% in the quarter was driven by pod and brewer pricing actions taken late in 2021 and during the second quarter of 2022. The volume/mix increase of 3.3% reflected pod volume growth of 4.7%, partially offset by a brewer volume decline of 4.2%, reflecting comparison to the strong 29% brewer growth in the year-ago period, according to Keurig.
Keurig Dr. Pepper reported overall corporate net sales for the second quarter of 2022 increased 13.2% to $3.55 billion, compared to $3.14 billion in the year-ago period (an increase of $13.5% on a constant currency basis. This strong performance reflected balanced growth in all segments, with both pricing and volumes up in the quarter. Driving the consolidated net sales growth was favorable net price realization of 10.4% and higher volume/mix of 3.1%, reflecting modest volume elasticity impacts in the quarter.
Chairman and CEO Bob Gamgort stated, “Our strong results reflect the flexibility and resilience of our business and the capability of our team to execute with excellence. We successfully recovered from supply chain disruptions in coffee and non-carbonated beverages, implemented additional pricing to offset inflation and continued to accelerate growth across our broad portfolio, leading to another quarter of strong market share performance. We remain confident that our ‘all-weather’ business model will enable us to deliver in the ongoing volatile macro environment.”
