Global domination for JAB Holding Company?
There seems to be no stopping JAB Holding Company from continuing to amass a global coffee empire.
JAB Holdings already owns majority stakes in Jacobs Douwe Egberts (formerly Kraft Foods and Douwe Egberts), Einstein Noah, Caribou Coffee and Peet’s Coffee. 2015 has been a highly acquisitive year for the company which also acquired Espresso House (Sweden), Baresso Coffee (Denmark) and US speciality coffee roasters Stumptown Coffee Roasters and Intelligentsia Coffee via Peet’s Coffee.
Now, the company is set to purchase Keurig Green Mountain in a deal worth $13.9 billion USD, giving the group access to Keurig’s single-serve brewing machines and the US coffee at home market.
While the acquisition could accelerate the launch of Keurig in Europe, the takeover is not without its challenges. Keurig currently partners with Starbucks Coffee Company, providing a platform for Starbucks Coffee through its K-Cups, but the JAB Holdings portfolio includes several brands that are direct competitors of Starbucks. Will this partnership remain in place once the acquisition is completed?
With so many coffee interests in its portfolio, will JAB Holdings optimise collaborations between its existing brands, or will the group look to further strengthen its acquisitions to increase its market dominance?