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You must enter the characters with black color that stand out from the other characters By Paul R. Dr Pepper Snapple is merging with Keurig. The new company will be called Keurig Dr Pepper. It's the latest big merger in the food and beverage industry.
Companies are grappling with the likelihood that prices could be pushed lower as a result of the increased dominance of Walmart and Amazon in the supermarket business.
Companies have been pairing up to cut costs and better position themselves for a tougher pricing world. The grocery business is increasingly dominated by Walmart and Amazon, especially after Amazon bought Whole Foods.
Both Walmart and Amazon aim to keep prices low, which squeezes the profit margins of big food companies. One way to combat that is to get bigger. Mondelez agreed to merge its coffee business with JAB's popular European coffee brands, such as Senseo and Douwe Egberts, in and subsequently acquired a stake in Keurig once JAB bought it a year later.
And it looks like another well-known food and drink company, Dunkin' Brands, could be a loser as a result of the merger. Analysts speculated last year that JAB might want to buy Dunkin'.
That deal seems less likely now.
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It will combine Dr Pepper, 7UP, Snapple, A&W and Sunkist with Keurig's franchise of single-serve coffee pods, which includes the Green Mountain Coffee Roasters and The Original Donut Shop brands.
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