The Netherlands-based coffee group has reported strong revenue growth for 2022, driven by steady performances for its Peet’s Coffee and out-of-home businesses, but price rises for consumer packaged goods impacted sales volumes across key European markets
JDE Peet's achieved 16% growth to reach €8.2bn ($8.7bn) | Photo credit: Peet's Coffee
JDE Peet’s has cited lower sales volumes across Europe as hampering its profits in 2022, but steady sales growth for its Peet’s Coffee café chain and out-of-home business helped boost group revenues.
Reporting on the 12 months ended 31 December 2022, the JAB Holding-backed beverage group achieved 16% growth to reach €8.2bn ($8.7bn).
The company said the increase on 2021’s €7bn ($7.5bn) revenues was primarily driven by an average 15% product price increase alongside a 22% rise in out-of-home sales.
JDE Peet’s consumer packaged goods (CPG) division comprised 74% of group revenues last year, totalling €6.1bn ($6.4bn,) with the European market representing 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 tariff increases.
CPG sales across Latin America, Russia, Middle East, Eastern Europe and Africa (LARMEA) grew 48% to reach €1.6bn ($1.7bn), while CPG sales in the Asia-Pacific region increased 19% to €814m ($865m).
JDE Peet’s cited the lifting of Covid restrictions across most markets globally as boosting revenues for its Peet’s Coffee chain and out-of-home channel.
Peet’s Coffee achieved 26% sales growth to reach €1.1bn ($1.2bn) while profits increased 10% to reach €147m ($156m).
The California-based coffee chain, which operates approximately 350 stores across the US, reported steady outlet growth across China — opening 47 stores to reach 117 across the country.
In January 2023 Peet’s Coffee opened its first store in the Middle East, at the UAE’s Dubai Mall shopping centre, in partnership with multi-brand restaurant operator Americana Restaurants.
JDE Peet’s achieved 26% sales growth in out-of-home channels, where the company supplies coffee to hospitality businesses, to reach €908m ($965m).
The company attributed its strong performance to 15% rise in sales volume, an 11% price increase and the lifting of lockdown restrictions, particularly across the UK, France and Germany.
It also cited strong business-to-business sales performances for its Douwe Egberts, Jacobs and Gevalia brands.
“Last year required us to make difficult but courageous choices on cost competitiveness and pricing leadership. We acted as a true category leader and were able to meet or exceed our financial commitments, without compromising on investments, nor on quality of our products and services. Consequently, we are emerging stronger for 2023, with an elevated growth portfolio, a competitive market share position, a well invested business and a more productive and very engaged enterprise,” said Fabien Simon, CEO, JDE Peet’s.
Amsterdam-based JDE Peet's is forecasting group sales of €8.6bn ($9.1bn) for the full year 2023.