The 10-K filing mentions a strategic partnership with Grupo PiSA to sell and distribute Electrolit instant hydration beverages within the U.S., expected to begin in early 2024. This represents a move to expand into the premium hydration beverage market.

Tim Cofer was appointed as Chief Operating Officer, with an expected transition to CEO in the second quarter of 2024. This indicates a planned leadership succession and potential strategic shifts under new leadership.

The Company received $7 million in net cash proceeds from its strategic asset investment program during the year ended December 31, 2023. This program is designed to create value from certain assets to enable reinvestment in KDP.

The 10-K filing indicates that operating margin increased 300 bps versus the year ago period to 21.5%. This improvement is driven by increased gross profit, which was partially offset by higher SG&A expenses.

Selling, general, and administrative (SG&A) expenses increased $267 million, or 5.7%, to $4,912 million. This increase reflected the impact of increased marketing investments and higher other operating costs, partially offset by lower restructuring and integration costs compared to the prior year.

As of December 31, 2023, the facility that we are establishing in Spartanburg, South Carolina was significantly underutilized due to delays in the manufacture and installation of certain manufacturing lines, as well as delays exacerbated by the COVID-19 pandemic.

The 10-K filing highlights that the North American beverage market is influenced by trends and uncertainties, including inflation in input costs, logistics, manufacturing, and labor costs, which has further led to fluctuation in interest rates. These impacts have created headwinds for the business that may continue into 2024.

Reductions in our payment terms have negatively affected, and could continue to negatively affect, our liquidity and our ability to maintain our cash conversion cycle to maximize our working capital. Reduced payment terms have contributed to, and could continue to contribute to, our need to utilize various financing arrangements for short-term liquidity.

The success of our business depends in part on our ability to maintain consumer confidence in the safety and quality of all of our products, including beverage products, their ingredients, their packaging, and our brewers.

The beverage industry is highly competitive and continues to evolve in response to changing consumer preferences. We compete with multinational corporations that can rapidly respond to competitive pressures and changes in consumer preferences by introducing new products, changing their route to market, reducing prices, or increasing promotional activities.

A significant portion of our business is attributable to sales of K-Cup pods for use with Keurig brewing systems. Continued acceptance of Keurig brewers to further increase household penetration is a significant factor in our growth plans.

Our sales of beverages, Keurig brewers, K-Cup pods, and other products may be negatively affected by numerous factors including our inability to maintain or increase prices, our inability to effectively promote our products, new entrants into the market, the decision of wholesalers, retailers, or consumers to purchase competitors' products instead of ours, increased marketing costs, and higher in-store placement and slotting fees driven by our competitors' willingness to spend aggressively.

The change was largely due the decrease in DPO, primarily driven by the reduction of payment terms for certain suppliers.

From training on risks from non-routine tasks, such as unexpected maintenance on equipment, to installing automated systems to prevent trailers from shifting during loading and unloading, our Environmental Health & Safety team considers all aspects of what our employees may encounter and works to minimize risk.

Just as each of our brands brings its own personality to our product portfolio, each KDP employee brings their own unique set of experiences, perspectives, and background to our business. KDP is embracing those differences to drive rapid change, inspire innovation, and better connect with our customers and consumers.

We invest in new and emerging technologies, including the use of automation, connected data, robotics, and artificial intelligence throughout our operations, including in our manufacturing and distribution facilities and our sales organization.

We rely on a combination of trademarks, copyrights, patents, and trade secrets to safeguard our proprietary rights, including our brands, our technologies, and ingredient and production formulas for our products.

We cannot be certain that the legal steps taken to protect our rights will be sufficient or that others will not infringe or misappropriate our rights. If we fail to adequately protect our intellectual property rights, or if changes in laws diminish or remove the current legal protections available to them, the competitiveness of our products may be eroded and our business could suffer.

The company repurchased and retired $706 million of common stock during the year ended December 31, 2023, and $2,915 million remained available for repurchase under the authorized share repurchase program. This indicates a continued focus on returning capital to shareholders.

The company invested $425 million in purchases of property, plant and equipment, primarily related to state-of-the-art manufacturing and warehousing facilities. This demonstrates a commitment to improving the supply chain network.

The company declared total dividends of $0.830 per share for the year ended December 31, 2023. This reflects a commitment to providing direct shareholder return through regular quarterly dividends.

We have worked diligently to embed conscious and responsible business practices into the foundation of our company. Our holistic ESG strategy is positioned to drive tangible and scalable solutions in service of doing more and better for our people, our environment and our communities.

We aim to reduce the use of unnecessary materials and offer packaging that is compatible with recycling, reuse, and composting systems. We also aim to use more post-consumer recycled content across our packaging portfolio.

Our approach includes a corporate policy, governance structures and transparency. Our climate goals provide a path for us to reduce our share of greenhouse gas emissions from our 2018 baseline through continuation of existing efforts, like improving energy efficiency in our operations, and the development of new focus areas, such as packaging improvements and value chain engagement.

Changes in economic and financial conditions in the U.S., Canada, Mexico or other geographies where we do business may negatively impact consumer confidence and consumer spending, which could result in a reduction in our sales volume and/or switching to lower price offerings.

The beverage industry is highly competitive and continues to evolve in response to changing consumer preferences. We compete with multinational corporations that can rapidly respond to competitive pressures and changes in consumer preferences by introducing new products, changing their route to market, reducing prices, or increasing promotional activities.

Increasing governmental and societal attention to environmental, social and governance matters has resulted and could continue to result in new laws or regulatory requirements, including new or expanded disclosure requirements that are expected to continue to expand the nature, scope and complexity of matters on which we are required to report.