Second quarter sales in the Keurig Green Mountain division of Keurig Dr Pepper were flat but adjusted operating income grew.
For the three months ended June 30, net sales at Keurig Green Mountain (KGM) were $949 million as compared to sales of $948 million in the comparable quarter the previous year. Adjusted operating income was $288 million, up from adjusted operating income of $260 million in the comparable quarter the previous year.
Company officials said KGM’s net sales performance in the quarter reflected high single-digit pod volume growth driven primarily by growth in U.S. household penetration of Keurig single-serve units. This was offset by lower net price realization due to strategic pricing actions and lower brewer sales due to timing related to brewer innovation.
In addition, household penetration responded positively to increased marketing investment behind new brewer innovations including the K-Elite coffeemaker, which debuted in March, and K-Cafe coffeemaker, which launched in the second quarter.