The JAB Holding-backed coffee and tea group says the move will bring its European business in line with other markets to deliver ‘a true omnichannel approach’
Photo credit: JDE Peet's
JDE Peet’s has announced it will combine its Out-Of-Home and CPG Europe businesses into a single European segment. The group will be led by Juan Amat, who is currently JDE’s President, CPG Europe.
In a press release, JDE Peet’s said the move would enable its European markets to ‘apply a true omnichannel approach’ – a model that has proved successful for the business in other markets globally. Additionally, the merger will enable JDE Peet’s to leverage its brands more effectively and reduce complexity, the company said.
The proposed changes remain subject to consultation as applicable regulations require.
“Over the last couple of years, we have successfully implemented various initiatives that have strengthened the foundations and improved the performance of our Out-of-Home business. However, we operate in a dynamic environment, and how our customers and consumers engage with us, buy our products, and use our services continues to structurally evolve. Combining our Out-of-Home and CPG Europe segments will allow us to better leverage our brand power and unlock value,” said Fabien Simon
, CEO, JDE Peet’s.
JDE Peet’s consumer packaged goods (CPG) division comprised 74% of group revenues in 2022
, totalling €6.1bn ($6.4bn,) with the European market the company’s largest sales contributor at €3.6bn ($3.9bn).
However, CPG sales volumes in Europe fell 13% over the period as a result of declining at-home coffee consumption post-pandemic and price negotiations with European supermarkets.
JDE Peet’s retail packaged coffee brands, which include L’OR, Peet’s, Jacobs, Tassimo and Douwe Egberts, were temporarily removed from some supermarket chains in Germany, France and the UK last year following disagreements regarding price increases.
JDE Peet’s was formed in 2019
after JAB Holding Company merged its Jacobs Douwe Egberts (JDE) and Peet’s Coffee businesses, later launching a successful IPO in late 2020.