Keurig Dr Pepper Inc., in announcing its first-quarter results, reported a decline in coffee system sales attributed by the company to supply chain disruption.
Coffee system net sales during the quarter of $1.09 billion marked a 4.3%, decline from $1.14 billion in the year-ago period as production was prioritized to rebuilding inventory following supply chain disruption in late Q4 and early Q1, according to Keurig Dr. Pepper.
The company said the segment’s net price realization increased by 3.2%, offset by a lower volume/mix of 7.5%. The company said volume/mix decrease of 7.5% in the quarter reflected lower pod and brewer shipment volume, both of which declined 5.2% versus the year-ago period. The company noted fourth-quarter comparisons to strong shipment volume growth in the year-earlier period of pods (13.7%) and brewer (61%).
Overall, Keurig Dr. Pepper reported Net sales for the first quarter of 2022 increased 6.1% to $3.08 billion, compared to $2.90 billion in the year-ago period, reflecting strong growth in Packaged Beverages, Beverage Concentrates and Latin America Beverages.
