STRATEGIC PARTNERS
AMSTERDAM, The Netherlands -- JAB Holding Co., the German investor that owns Peet's Coffee and Dutch beverage giant Jacobs Douwe Egberts, announced on Dec. 18 that it is merging the two companies into a single coffee and tea company. It also plans to seek an initial public share offering and begin trading on the stock market. The newly formed company -- JDE Peet's -- with global brands including Peet's Coffee, L'OR, Jacobs Coffee, Douwe Egberts, Senseo, Tassimo, Kenco and Pickwick -- will have a presenc...
December 19, 2019 by Emily Jed
AMSTERDAM, The Netherlands -- JAB Holding Co., the German investor that owns Peet's Coffee and Dutch beverage giant Jacobs Douwe Egberts, announced on Dec. 18 that it is merging the two companies into a single coffee and tea company. It also plans to seek an initial public share offering and begin trading on the stock market.
The newly formed company -- JDE Peet's -- with global brands including Peet's Coffee, L'OR, Jacobs Coffee, Douwe Egberts, Senseo, Tassimo, Kenco and Pickwick -- will have a presence in more than 140 countries worldwide, going head to head with Starbucks and Nescafe, with on-demand systems and coffee shops.
JDE Peet's brand portfolio will offer a wide range of coffees including traditional roast and ground coffees, soluble coffee, on-demand systems, with proprietary platforms such as Senseo and Tassimo. It will also offer products compatible with other popular coffee systems, with an expectation to generate nearly have revenues of approximately $7.8 billion
Depending on market conditions, the IPO is expected to be completed sometime during 2020,
JDE Peet's will contend with Nestlé, too, the world's largest packaged-coffee business that struck a $7.15 billion deal with Starbucks last year for the global rights to sell its branded products at supermarkets and other retail venues, including capsules for Nespresso machines. Nestlé recorded $19 billion in global coffee sales this year, including contribution from Starbucks' line.
JAB also owns Panera, Krispy Kreme, Caribou Coffee Company, Pret A Manger, and Keurig Dr Pepper. JAB acquired Peet's Coffee in 2012 for $977.6 million. It bought Jacobs Douwe Egberts for $9.8 billion a year later. In 2014, the company merged Jacobs Douwe Egberts with the coffee businesses of Mondelez International to create JDE.
Peet's Coffee chief executive Casey Keller will become chief executive of JDE Peet's, effective January 2020. Frederic Larmuseau, who stepped down from his role as CEO of Jacobs Douwe Egberts, will remain at JDE as a special adviser to the board and the CEO. Keller has led Peet's Coffee since 2018. He previously worked at P&G, Heinz, Mars Wrigley and Alberto Culver.
"We are excited that Casey will assume the role as CEO of JDE Peet's as we continue further building upon the company's strong track record of growth and expansion. We are proud of what we have accomplished at JDE and Peet's but believe with our IPO the best years of growth and shareholder value creation are ahead of us with our newly combined company," said Olivier Goudet, chairman of JDE and chairman of Peet's Coffee.
JAB expects to complete the IPO completed during 2020, after which it expects to remain the controlling shareholder.
Peet's Coffee, founded 1966 in Berkeley, CA, opened its first store in Seattle in 1971. It owns majority stakes in "third wave" coffee brands Intelligentsia and Stumptown through acquisitions under JAB. It has coffeehouses in eight states and sells ready-to-drink coffee products in 15,000 grocery and C-stores nationwide.
