Keurig Dr Pepper
The combination of coffee and a unique and loved soft drink makes this a stellar long-term play when prices go higher. Keurig Dr Pepper Inc. (NASDAQ: KDP) was formed in 2018 when Keurig Green Mountain and Dr Pepper Snapple merged. It operates in the United States and internationally through the following segments.
The Coffee Systems segment manufactures and distributes various finished goods related to its coffee systems, K-Cup pods and brewers, as well as specialty coffee. This segment sells its brewers through third-party distributors and retail partners, as well as through its website.
The Packaged Beverages segment engages in the manufacture and distribution of packaged beverages of its brands; contract manufacturing of various private label and emerging brand beverages; and distribution of packaged beverages for its partner brands.
The Beverage Concentrates segment manufactures and sells beverage concentrates primarily under the Dr Pepper, Canada Dry, A&W, 7UP, Sunkist, Squirt, Big Red, RC Cola, Vernors, Snapple, Mott’s, Bai, Hawaiian Punch, Clamato, Yoo-Hoo, Core, ReaLemon, evian, Vita Coco and Mr and Mrs T mixers brands. This segment also manufactures beverage concentrates into syrup.
The Latin America Beverages segment manufactures and distributes carbonated mineral water, flavored carbonated soft drinks, bottled water and vegetable juice products under the Peñafiel, Clamato, Squirt, Dr Pepper, Crush and Aguafiel brands. The company serves retailers, bottlers and distributors, restaurants, hotel chains, office coffee distributors and end-use consumers.
The dividend yield here is 2.09%. Jefferies has set a $44 price target. The consensus target is $40.69, and Keurig Dr Pepper stock closed on Monday at $38.20.
Mondelez
This consumer sector giant makes good sense for conservative investors. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.
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