Dr Pepper Soda Maker's CEO Resigns Over 'Code Of Conduct Violations'

Keurig Dr Pepper Inc KDP, said Thursday that its CEO Ozan Dokmecioglu is quitting and will no longer be a member of its board of directors.

In a statement, the maker of Dr Pepper Soda in the United States said, "Dokmecioglu agreed to resign due to violations of the Company’s Code of Conduct that were unrelated to strategy, operations or financial reporting."

Bob Gamgort, Keurig Dr Pepper's Chairman and former CEO was reappointed to take over the reins.

The company told Benzinga in an email that it would not provide further details on the nature of Dokmecioglu's violations, adding that "CEO succession is not the focus right now."

Why It Matters: Dokmecioglu took over from Gamgort in April and was formerly the CFO of Keurig Green Mountain.

"Gamgort is fully focused on leading KDP in the CEO role he held less than four months ago," a company spokesperson told Benzinga. "There will be an appropriate time to restart the succession process, but we don’t have a specific timeframe in mind for doing so."

Separately, Truist Securities analyst Bill Chappell downgraded Keurig Dr Pepper from Hold to Sell and lowered the price target from $40 to $30 late last month.  

The analyst said the return to normal for the coffee systems business will drag top and bottom-line growth through 2023.

Price Action: On Thursday, Keurig Dr Pepper shares closed 1% higher at $37.94, according to Benzinga Pro data. 

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