German conglomerate, which has amassed some 30 café and retail coffee brands since 2010, announces creation of JDE Peet’s ahead of planned IPO in 2020
Peet's Coffee was founded in 1966 and today operates around 417 stores across the US
JAB Holding has amalgamated its Jacobs Douwe Egberts (JDE) and Peet’s Coffee businesses ahead of hotly anticipated IPO scheduled for 2020, after which JAB is expected to remain the controlling shareholder.
The new company, JDE Peet’s, brings together global coffee retail brands such as Jacobs Coffee, Douwe Egberts, Senseo, Tassimo, Moccona, Kenco, and prominent US branded coffee chains Peet's Coffee, Stumptown Coffee Roasters and Intelligentsia, with combined revenues of $7.8bn.
Peet’s Coffee CEO Casey Keller
will become CEO of JDE Peet’s, effective January 2020, while Frederic Larmuseau will step down as JDE CEO and remain a special advisor to the Board and the CEO.
“JDE Peet’s is an exceptional business with some of the most beloved coffee brands in the world, and I am excited to lead the company in its next phase of growth,” said Keller.
“With our leading positions in many important markets, supported by all the great people in our organisation, we are well-positioned to continue achieving strong long-term growth,” he added.
The move marks a new phase in JAB Holding's complex amassing
of prominent coffee and café brands across developed consumer markets. JAB first acquired Peet’s, which today has around 417 US stores, for $977.6m in 2012. The following year it purchased Douwe Egberts for $9.8bn and in 2014 merged Douwe Egberts with Mondelez International’s coffee business to create JDE.
World Coffee Portal research
shows JAB Holdings is now the third-largest branded coffee chain business in the US. Combined, Starbucks
and JAB control a 78% share of the US branded coffee shop market.
Furthermore, the $18.7bn amalgamation
of JAB’s soft drinks and retail coffee businesses in 2018 to create Keurig Dr Pepper
is recasting coffee in the US soft drinks market. This is enabling JAB to push coffee products further and faster through Dr Pepper’s retail channels, which is now the third-largest beverage distribution company in the US behind Pepsico and Coca-Cola.