Good morning. In lower than three years, Sudhanshu Priyadarshi, CFO of Keurig Dr Pepper (KDP), was tapped for a chief govt position.
KDP introduced on Monday an settlement to amass Amsterdam-based coffee-seller JDE Peet’s for about $18 billion. The deal is predicted to shut within the first half of 2026. Afterward, KDP (No. 284 on the Fortune 500) will break up into two U.S.-listed corporations: Priyadarshi will lead the espresso enterprise, and present KDP CEO Tim Cofer will head the beverage enterprise, with manufacturers comparable to Dr Pepper, 7 Up, and Snapple. The separation is predicted to be accomplished by the tip of subsequent yr.
“Sudhanshu has been a real associate of mine over the previous two years,” Cofer stated on a name with traders Monday morning. He described him as an “bold strategic thinker, a financially-minded operator, and an inspiring individuals chief.” Priyadarshi stated in a LinkedIn put up Monday that it’s an honor to be named the long run CEO of the worldwide espresso firm.
The street from CFO to CEO
Priyadarshi spent 14 years at PepsiCo in finance and technique, together with as CFO for World R&D & Vitamin. He later served as world COO at Cipla, dealing with a number of M&A offers, and held senior finance roles at Walmart. Earlier than becoming a member of KDP in November 2022, he was CFO of Vista Out of doors.
KDP’s board selected Priyadarshi for his sturdy shopper packaged items basis at PepsiCo, in depth technique and M&A expertise—going via a by-product will “really feel pure to him,” Scott Simmons, co-managing associate at govt search agency Crist Kolder Associates, advised me.
“Most significantly, only a yr after becoming a member of KDP as CFO, he was given accountability for the $2 billion worldwide enterprise,” Simmons stated.
As extra finance chiefs transfer into CEO roles, Simmons added, Priyadarshi’s transfer into basic administration overseeing a big P&L, mixed together with his expertise since 2022 as a board member at Wabash Nationwide, are “textbook performs for rising a CFO into CEO.”
Morningstar analyst Dan Su advised me that, as CEO for the worldwide espresso firm, traders will deal with Priyadarshi’s world operational expertise and talent to guide numerous groups.
KDP itself was established in 2018 following the $18.7 billion merger of Keurig Inexperienced Mountain Espresso and Dr Pepper Snapple. This made it probably the most diversified enterprise in nonalcoholic “refreshment” drinks, with greater than 125 manufacturers as proprietor, investor, or distributor. This diversification helped the corporate climate shifts in shopper preferences.
KDP’s acquisition of JDE Peet’s comes as espresso costs climb amid new commerce wars and the latest 50% U.S. tariff on Brazilian imports, the world’s prime espresso exporter. On Monday, the market initially disliked the transfer, sending KDP shares down as a lot as 11% and erasing billions in worth. Nonetheless, analysts and Fortune’s Shawn Tully see Cofer’s technique as a essentially sound long-term shift for the corporate. (You may learn Tully’s evaluation right here.)
JDE Peet’s deal will develop its world espresso portfolio and generate about $400 million in synergies over three years, in response to KDP.
Priyadarshi’s journey from CFO to CEO marks the beginning of a brand new chapter—not only for him, however for a worldwide espresso chief poised for growth as business dynamics shift.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Large Deal
Analysis by EisnerAmper, a worldwide enterprise advisory agency, reveals a spot between workers and employers relating to AI use. Whereas 80% of workers surveyed report a internet optimistic expertise utilizing AI at work, solely 36% say their firm has a proper AI coverage in place.
Simply 22% of workers who used AI for work previously yr report that their employer actively displays their AI utilization.
Additionally, 60% of workers depend on free AI platforms reasonably than internally developed ones (24%) or exterior, company-paid instruments (43%). Moreover, 28% would use AI at work even when it have been banned.
The findings are based mostly on a survey of 1,017 U.S. full-time desk employees with a bachelor’s diploma or increased, all of whom have labored with AI previously 12 months.
Going deeper
“Chevron’s president explains how the corporate remodeled the traditionally boom-and-bust shale enterprise right into a steadily worthwhile enterprise” is a report by Fortune‘s Jordan Blum
From the report: “Leaning on West Texas’ booming Permian Basin, Chevron says its mixture of sheer scale and expertise permits it to hop off the spending treadmill and at last pump the shale enterprise for wholesome profitability with out the fixed cry for “Drill, child, drill.” Whereas Exxon Mobil might stay bigger, Chevron is aiming for No. 1 within the leery eyes of a Wall Road that beforehand soured on the oil sector.”
Blum continues, “The closing of its $53 billion megadeal to amass Hess in July permits Chevron to focus internationally on new development, particularly its acquired place offshore Guyana—arguably the biggest oil discovery of the century—whereas utilizing the U.S. and its huge footprint within the Permian to reap the wanted inflow of free money move.” (You may learn the whole report right here.)
Overheard
“{Hardware} corporations that enlist subsequent gen AI to place prospects first, seize huge worth, introduce infrastructure effectivity, and entice sustainable funding shall be leaders out there.”
—Matt Rogers is the cofounder and CEO of Mill, a wasted meals prevention firm, writes in a Fortune opinion piece. Rogers co-founded Nest, acquired by Google in 2014 for $3.2B. Previous to Nest, he labored with Steve Jobs to construct the very first iPhone, in addition to machine {hardware} within the 2000s.
