Good morning. The Fortune 500 company Keurig Dr Pepper (KDP) is an example of a merger that created a unique mix of products across categories—a diversification that allowed the company to better weather shifts in consumer preferences.
KDP was established in 2018 following the $18.7 billion merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. This made KDP the most diversified enterprise in nonalcoholic or “refreshment” beverages, with over 125 brands where it is an owner, investor, or distributor.
In a new Fortune feature article, my colleague Shawn Tully takes a deep dive into KDP and profiled its CEO, Tim Cofer, in the role since 2024. According to Tully, Cofer is bringing the energy and mindset of a scrappy underdog to this well-established company of 29,000 employees. “We’re hungry, we like to disrupt; this is a challenger culture where we play offense, not defense,” Cofer told him. “There’s a real sweet spot where a company’s large enough to bring the scale in investment and distribution to win in a big way, but keeps the mindset of being nimble, aggressive, and continually dissatisfied with the status quo.”
Cofer persuaded the 38-year-old founder of the popular energy drink Ghost and, in October, secured a $1.65 billion deal to acquire the brand, Tully writes. “The caffeine-like high of the Ghost tie-up exemplifies the jolt Cofer’s delivering to make KDP an increasingly formidable challenger to the long-ruling kings of beverage, Coca-Cola and PepsiCo,” he writes.
In 2024, Keurig Dr Pepper’s net sales were $15.4 billion, up 3.6% from the previous year. However, its profitability lags behind that of Coca-Cola and PepsiCo. “To lift KDP to Coke- and Pepsi-level profitability, Cofer needs to perform the tough, dual task of making high-margin hits on the super-competitive soft drink side, while reheating coffee. He’s got big plans for both,” according to Tully. You can read the complete article here.
The road to chief executive
During his tenure, Cofer has added fast-growing, high-margin new offerings, from energy and sports-hydration drinks to refreshers and ready-to-drink iced coffees. He joined the company as chief operating officer in 2023, as a key step toward succeeding then-CEO Bob Gamgort.
Cofer became chief executive of KDP in April 2024. He previously spent more than 25 years with Mondelēz International and its predecessor, Kraft Foods, where his last position was EVP and chief growth officer.
CEOs who have held multiple C-suite roles—such as COO, divisional CEO and CFO (a path that is becoming more common)—develop a broader framework for decision-making, according to research. And one of the findings of a 10-year study of 17,000 C-suite executives found that one of the fastest ways to prove that you are prepared to be a CEO is to prove your worth during a difficult time.
Cofer’s diverse C-suite experience and willingness to disrupt the status quo shows he’s willing to embrace challenges, adapt quickly, and guide teams through uncertainty.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Rohini Jain was appointed CFO of BILL (NYSE: BILL), a financial operations platform for small and midsize businesses, effective July 7. John Rettig, currently CFO, will take on an expanded role as both president and chief operating officer. Rohini has more than 20 years of experience at global fintech, payments, and e-commerce companies, including PayPal, eBay, Walmart, and General Electric. She joins BILL from PayPal, most recently serving as CFO and SVP of PayPal’s Large Enterprise and Merchant platforms.
Rick Surett was appointed CFO of Grant Thornton, a global professional services firm, effective June 2. He succeeds Muhammad Bhayat, who is retiring after more than 20 years at Grant Thornton. Surett has nearly 30 years of experience. Before joining Grant Thornton, Surett served as CFO of Transportation Equipment Network. He also held a series of leadership roles at Ports America, including CFO, and previously served as director of corporate development at Avaya.
Big Deal
Mastercard’s latest research, “Beyond the balance sheet: The CFO as a catalyst for change,” finds that CFOs are playing an increasingly strategic role, driven by advances in technology and data analytics. Based on interviews with CFOs at leading multinationals, the report highlights how future investment decisions will rely on both internal and external data, with predictive analytics and AI enabling more dynamic, informed choices.
As CFOs leverage these tools, they are expected to drive corporate strategy, play a bigger role in M&A success, and shift from reporting on past performance to shaping the company’s future direction. Nearly half of CFOs plan to invest in AI to stimulate growth, and most expect data-driven decision-making to become central to their role.
Going deeper
Gallup recently released an interesting report on the emotions connected to math. The “Math Matters Study: The Value of Math in Work and Life” finds that virtually all U.S. adults surveyed see math as important in their lives, but not all Americans feel confident in their math abilities. Ninety-five percent of U.S. adults say math skills are very (55%) or somewhat (40%) important in their work life.
Overheard
“At 40, Jonathan Anderson has exceptional qualities combining creativity and savoir-faire. He is attentive to commercial demands and has the talent to respond to them with his characteristic daring and inventiveness.”
—Delphine Arnault, CEO of Christian Dior, told Fortune in regards to hiring Jonathan Anderson as creative chief overseeing the entire brand.
