USA – Keurig Dr Pepper (KDP) is bolstering the capabilities of its coffee roasting and manufacturing facility in South Carolina, US with a US$100 million investment. 

KDP operates a portfolio of more than 125 owned, licensed and partner brands, including retail coffee products from Caribou Coffee, Cinnabon, Gloria Jean’s, Krispy Kreme and Panera Bread.  

 The company’s Spartanburg County location is exclusively focused on coffee roasting and packaging for K-Cup pods for use in Keurig brewers.  

KDP says that the facility is one of the largest ‘LEED’ certified manufacturing facilities in the world. LEED (Leadership in Energy and Environmental Design) is the world’s most widely used green building rating system. 

The coffee and soft beverages giant expects its investment to create around 250 new jobs by 2027 at the facility located in Spartanburg County. 

 The project is an extension of a phased build of the facility which broke ground in 2019. KDP previously invested a total of US$380 million at the facility, creating 155 jobs at the location. 

 South Carolina’s Coordinating Council for Economic Development awarded a $1 million Set-Aside grant to Spartanburg County to assist with the costs of building improvements. 

 KDP’s chief supply chain officer, Roger Johnson, said: “Our facility in South Carolina remains an important asset in the ongoing evolution of our next-generation coffee production capabilities. Keurig Dr Pepper is proud to continue to grow in the welcoming and talent-rich community of Moore.” 

 The further development of the facility is expected to be complete in 2027, with jobs opening in manufacturing and distribution operations. 

The new investment comes at a time when inflationary pressures continue to dent KDP’s at-home coffee sales in the US, although the category is still trading above pre-pandemic levels. 

Coffee sales continued a downward trajectory from the start of the year, falling 5.7% over the period to $970m compared to $1.03bn a year ago amid ongoing inflationary pressures and reduced consumer spending. 

 The K-Cup maker attributed the broad decline in at-home coffee sales to higher retail prices, up 1.6% on last year, increased consumer mobility post-pandemic and higher marketing costs.  

Rebuilding inventories during supply chain constraints over the last year also negatively impacted category performance, KDP added.