The company utilizes principal raw materials including green coffee, water, aluminum cans and ends, PET bottles and caps (both virgin and recycled), CO2, sweeteners, paper products, K-Cup pod packaging materials, fruit, glass bottles and enclosures, cocoa, teas, juices, and other ingredients. Post-consumer recycled materials are incorporated in the manufacturing of single-serve brewers. Prices for many raw materials are influenced by indirect commodity costs such as aluminum, natural gas, resin, corn, and pulp. The company manages price volatility through commodity derivative contracts and supplier pricing agreements. Green coffee is sourced via direct relationships with farms, estates, cooperatives, cooperative groups, exporters, and brokers. Transportation and energy costs, including fuel, ocean freight, and tariffs, have a significant impact on expenses and are reflected in cost of sales and selling, general, and administrative expenses.
Keurig Dr Pepper Inc's Comment on Supply Chain
The company utilizes principal raw materials including green coffee, water, aluminum cans and ends, PET bottles and caps (both virgin and recycled), CO2, sweeteners, paper products, K-Cup pod packaging materials, fruit, glass bottles and enclosures, cocoa, teas, juices, and other ingredients. Post-consumer recycled materials are incorporated in the manufacturing of single-serve brewers. Prices for many raw materials are influenced by indirect commodity costs such as aluminum, natural gas, resin, corn, and pulp. The company manages price volatility through commodity derivative contracts and supplier pricing agreements. Green coffee is sourced via direct relationships with farms, estates, cooperatives, cooperative groups, exporters, and brokers. Transportation and energy costs, including fuel, ocean freight, and tariffs, have a significant impact on expenses and are reflected in cost of sales and selling, general, and administrative expenses.
Sources:
Keurig Dr Pepper Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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