Dive Brief:
- Keurig Dr Pepper appointed Kimberly-Clark executive Russ Torres as CEO of its coffee division ahead of the company's planned split of its beverage and coffee units into two independent companies.
- Torres will join Keurig Dr Pepper on Nov. 3, where he will serve as chief executive of the coffee business and lead the integration of Keurig Dr Pepper and JDE Peet’s coffee operations. He will report to CEO Tim Cofer, who is set to lead the beverage business after the separation.
- Torres is the third person Keurig Dr Pepper has selected for this job since announcing the corporate split last year. It initially chose CFO Sudhanshu Priyadarshi for the position, then later selected JDE Peet’s CEO Rafael Oliveira to lead the company. Oliveira left for another CEO opportunity at Heineken over the summer.
Dive Insight:
Keurig Dr Pepper bought JDE Peet’s last year for $18 billion with plans to spin out the coffee operation into a pure-play business, a move that was met with mixed investor optimism. The separated Global Coffee Co. is expected to generate $16 billion in annual revenue from brands such as Keurig, Peet’s and Green Mountain Coffee Roasters.
Torres will join from Kimberly-Clark, where he was president and chief operating officer. He was previously group president of North America for the company, where he was credited with driving profitable growth. He also has experience at Newell Brands, Bain & Company and Mondelēz International.
“Russ is a proven leader with extensive experience building consumer brands, guiding global organizations through complex change, and delivering consistent results with high performing teams. That is precisely what Global Coffee Co. requires,” Pamela Patsley, Keurig Dr Pepper’s chair, said in a statement. “Following a rigorous global search against a demanding set of criteria, Russ emerged as the clear choice.”
In Keurig Dr Pepper’s most recent quarter, the beverage giant reported $7.31 billion in net sales, a 75.6% increase year-over-year due to the acquisition of Peet’s. Excluding the Peet’s acquisition, sales grew 7.3%.
