19 May 2020 | Germany

JAB Holdings seeks to raise €700m with JDE Peet's IPO

Widely anticipated IPO, first rumoured when JAB Holdings merged its Jacobs Douwe Egberts and Peet's Coffee businesses in late 2019, will go ahead despite coronavirus uncertainty and demonstrates the resilience of coffee at-home sales during the pandemic

A Peet's Coffee store in Portland, Oregon, USA 



JAB Holdings-controlled coffee and tea business, JDE Peet’s, will seek to raise at least €700m ($763m) via an IPO offering on the Euronet Amsterdam exchange in the ‘coming weeks’, the company has said. The money will be used to pay off debt, with a secondary offering expected ‘subject to market conditions’.
 
The IPO has been widely anticipated since late 2019, when JAB Holdings merged its Jacobs Douwe Egberts and Peet’s Coffee businesses. The merger brought 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.
 
Achieving sales of around $7bn in 2019, JDE Peet's describes itself as the ‘world’s largest pure-play coffee and tea group by revenue’, with around 80% of its business revolving around retail coffee sales.
 
“The Group’s trading has thus far been relatively resilient during the COVID-19 pandemic at a time of global economic turmoil… The coffee and tea category has benefited in the past from attractive growth fundamentals and has proven to be resilient in times of economic downturn,” JDE Peet's said in press statement.
 
The decision to press ahead with the IPO despite significant and on-going coronavirus disruption globally demonstrates the resilience of retail coffee companies during the pandemic.
 
In April 2020, fellow JAB Holdings-controlled business, Keurig Dr Pepper, revealed robust coffee pod sales had contributed to a 4.4% net sales increase to $2.61bn in the first quarter compared to the previous year.
 
Global food and beverage giant, Nestlé, also reported strong retail coffee sales in the first quarter of 2020 as more consumers stayed at home due to coronavirus.
 

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