Keurig Dr Pepper Inc (NYSE:KDP) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:00 am ET
[Operator Instructions] Our first question will come from the line of Bonnie Herzog with Goldman Sachs. Please go ahead.
All right, thank you. Good morning, everyone.
Hi, I kind of want to just ask overall, your business has done quite well in the at-home economy, that we're all experiencing right now. So, just hoping you could talk a little bit more about how you expect your business will perform maybe in a more normalized environment. Yes, I guess I'm wondering if you see any risk at all in possible pullback in demand for your products, maybe as consumers return to some of their pre-COVID routines, just really how do you think about this and how sticky do you expect your business to be as maybe things return to normal? Thanks.
Yeah, sure, Bonnie it is a great question, something we think about a lot. I think if we step back at 100,000 feet, and then I'll drill down deeper into your points. We look at -- there are companies that fall into roughly three buckets. There were those that may not have been done doing well prior to the pandemic and they're doing really well during the pandemic because suddenly something was off trend became on trend. And it would cause you to say, well what's going to happen when things turn to normal, which is where you're going.
There's another set of companies that were doing really well prior to and are struggling in this environment. And in that case, you kind of have to hope for a return to a future that looks a lot like the past. We're in a very unique situation here, and I think there are very few companies in this situation. That is, we were performing very, very well prior to the crisis. So we said a number of times, we don't see this at all as a windfall for us. We've been able to perform very well since the crisis, but we've had to work really hard to do that.
And I think you'll see from the comments that we made earlier, that it is quite a mixed management exercise, we've had to push some areas of our business really hard, but I'll remind you, there are areas of our business that are large and profitable, that have taken a significant hit in this crisis that we've had to offset. And if things were to return more to normal, we'll get the bounce back on those immediately. But we don't expect into the future, we don't expect it to continue the way it is indefinitely, but we also don't think that the future is going to look exactly like the past.
And so, we have the tools and the levers to pull, to be able to create a company that does even better in the future. And that's reflective of all of the innovation that we're continuing to invest in, and we're continuing to launch. And we're getting great retailer receptivity