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Coffee shop closures weigh down JDE Peet’s 2020 sales

JAB Holding Company-controlled business reports a 4.2% sales decline for 2020 as severe Covid-19 disruption to out-of-home coffee sales is only partially offset by increased at-home consumption

A Peet's Coffee store in Georgetown, USA | Photo credit: Peet's Coffee



JDE Peet’s has reported a 4.2% annual sales decline to €6.7bn ($7.9bn), down from €6.9bn ($8.2bn) in 2019, as growth in at-home coffee only partially offset steep out-of-home sales declines.
 
Reflecting the stark impact of Covid-19 lockdowns on coffee businesses globally, JDE Peet’s sales of at-home coffee grew by a 'record' 9.1%. In Europe, JDE Peet’s largest at-home coffee market, packaged coffee sales increased 6.3% to €3.5bn ($4.2bn) in 2020.
 
Meanwhile, out-of-home sales for coffee products typically consumed in cafés, offices and education campuses, fell 32% to €666m ($789m).
 
Sales at US coffee shop Peet’s Coffee fell 4.6% to €838m ($993m) in 2020, with World Coffee Portal data showing the chain closed net 75 stores in 2020 to operate a total of 342 sites across the US. Data from Project Café USA 2021 shows Covid-19 disruption led to a 24% sales decline in the US branded coffee shop market during 2020, with $11.5bn wiped off the market value.
 
Reflecting on the challenges of 2020, JDE Peet’s CEO Fabien Simon remained up-beat on the prospect for growth in 2021, but acknowledged sustained uncertainty for the year ahead.
 
“2021 is expected to be another uncertain year and the long-lasting impacts of the pandemic are unclear and will need to be assessed, in particular the implications for the away-from-home channel.
 
“While uncertainty remains regarding the future implications Covid-19 may have on global markets, we believe that vaccination programmes around the world will lead to a gradual lifting of lockdown measures in the course of 2021.”
 
Indicating the improved outlook for the year ahead, JDE Peet’s said it was forecasting organic sales growth of 3-5% in 2021.

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