Beverage company Keurig Dr Pepper Inc. (NASDAQ:KDP) is bracing for a challenging second half of 2025, as rising tariffs and inflationary pressures weigh on its U.S. coffee segment.
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What Happened: During its second-quarter earnings call on Thursday, the company’s CEO, Timothy Cofer, acknowledged that “the tariff impacts will become prominent” in the second half of this year.
“We have included all tariffs as implemented as of today. And we know that those tariff impacts will be more prominent and put some additional pressure,” he said.
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In addition to tariffs, the company flagged higher commodity costs and retailer behavior as headwinds. “Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee,” Cofer said. “I also …