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JDE Peet’s to increase coffee capsule production by 60%

JAB Holding-controlled company will invest €110m upgrading its coffee capsule production facility in France to meet increased global demand for at-home coffee products during the pandemic

Peet's Coffee's Alameda Roastery | Photo: Peet's Coffee 

JDE Peet’s will invest €110m ($130m) upgrading its global supply network and increase aluminium coffee capsule production by 60%. New high-speed production lines at its facility in Andrézieux, France, are expected to become operational during the first half of 2021.
“The total single serve coffee category has seen tremendous growth, a trend that is expected to continue, with aluminium coffee capsules serving as a strong driver,” said Fabien Simon, CEO, JDE Peet’s.
Sales of coffee pods and retail packaged coffee have soared worldwide during the pandemic, with many consumers opting to brew their daily coffee at home due to widespread disruption among cafés and coffee shops and increased levels of home working. 
In July 2020, Nespresso announced it would invest $170.5m upgrading production capacity at its coffee pod facility in Romont, Switzerland. The move followed the strongest global quarterly sales in five years for Nespresso’s parent company Nestlé, with its Starbucks, Nescafé and Coffee Mate packaged coffee ranges contributing to 7.4% organic sales growth across its Americas (AMS) business in April 2020.
Founded in 2019 through merger of retail packaged coffee company, Jacobs Douwe Egberts (JDE) and US coffee chain Peet’s Coffee, JDE Peet’s is well placed to capitalise on synergies between at-home and out-of-home coffee sales channels.
In June 2020 JDE Peet’s, raised $2.5bn with an IPO that valued the company at $17.3bn. The company reports it holds around 13% of the total $17bn single serve coffee category, a proportion it will be seeking to grow as the global at-home coffee market goes from strength to strength.

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