What Keurig Dr Pepper Inc. told the SEC could break it.

Walmart is KDP's largest customer at ~16% of consolidated net sales in 2025 ($2,654M) and >10% of trade receivables ($186M), spanning all three segments — a meaningful single-customer concentration.

“Walmart is considered a major customer, accounting for more than 10% of our total net sales, and is represented in all three of our reportable segments. The following table provides our net sales to Walmart: For the Year Ended December 31, (in millions) 2025 2024 2023 Net sales Walmart $ 2,654 $ 2,514 $ 2,476”

KDP faces commodity price risk across coffee beans, PET, polypropylene, aluminum, diesel fuel, corn (HFCS), apple juice concentrate, sucrose, and natural gas; a 10% commodity-price move shifts its hedge derivatives' fair value by ~$60M, and recovery via pricing may be limited by competition.

“Our principal commodities risks relate to our purchases of coffee beans, PET, Polypropylene, aluminum, diesel fuel, corn (for high fructose corn syrup), apple juice concentrate, sucrose, and natural gas (for use in processing and packaging).”

KDP's Keurig business faces multidistrict antitrust litigation over single-serve coffee portion packs (direct purchasers including McLane, BJ's, Winn-Dixie); Keurig settled the indirect-purchaser class claims for $31 million, with other claims ongoing.

“All of these actions were transferred to the SDNY for coordinated pre-trial proceedings (In re: Keurig Green Mountain Single-Serve Coffee Antitrust Litigation) (the "Multidistrict Antitrust Litigation"). In July 2020, Keurig reached an agreement with one of the plaintiff groups in the Multidistrict Antitrust Litigation, the putative indirect purchaser class, to settle the claims asserted for $ 31 million.”

Recent and threatened U.S. tariffs on Canada, Mexico, China, Brazil, and others (and retaliatory actions) have hurt KDP's profitability — contributing to a ~4 percentage-point unfavorable gross-profit impact from ingredients/materials inclusive of tariffs in 2025.

“Restrictions on business activities, which have been or may be imposed or expanded as a result of political and economic instability, deterioration of economic relations between countries, such as changes in or terminations of existing trade agreements, or the imposition of tariffs (including recent U.S. tariffs imposed or threatened to be imposed on Canada, Mexico, China, Brazil, and other countries, and any retaliatory actions taken by such countries), or otherwise, has and could continue to impact our profitability or otherwise have an adverse effect on our business.”

Some raw materials and packaging are available only from a limited number of suppliers or a sole supplier; KDP also relies on a limited number of suppliers/manufacturers for its brewers (made by Asian contract manufacturers) and limited order-fulfillment companies for brewers, concentrates, and syrups.

“Some raw materials and supplies used in the production of our products, including packaging materials, are available from a limited number of suppliers or from a sole supplier, or are in short supply when seasonal demand is at its peak.”