Keurig Dr Pepper

Intangible assets (85/100): Dr Pepper, Canada Dry, Snapple, 7UP and owned energy stakes (GHOST, C4 distribution) create brand power; Dr Pepper has posted multi‑year share gains and is the #2 CSD in the U.S. by volume. Starbucks K‑Cup renewal further strengthens coffee brand breadth.

Switching costs (75/100): Keurig’s installed base and auto‑delivery programs create friction to leave, though cross‑compatible pods and alternative systems temper lock‑in. Q4 2024 brewer shipments were 10.4 million (+7.3 percent YoY), evidencing a stable installed base refresh cycle.

Network effects (72/100): More brewers attract more licensed brands and SKUs, which in turn increase consumer utility; the Starbucks extension and continued brand onboarding (e.g., Massimo Zanetti brands) support this flywheel, though it is weaker than payment‑network effects.

Cost advantage (65/100): Concentrate economics and a scaled North American DSD network drive advantaged per‑unit distribution costs; in coffee, scale in pod manufacturing supports procurement and conversion efficiency.

Efficient scale (70/100): Regional concentrate territories and DSD infrastructure create localized barriers; in coffee, capacity is increasingly optimized via a pod‑manufacturing JV post‑transaction. Weighted overall moat: high for beverages, moderate for coffee given competition (Nespresso, drip) and unlicensed pods.