On 25 August, it was announced North American beverage company Keurig Dr Pepper will acquire international pure-play coffee company JDE Peet’s for AU$27.79 billion – the biggest buyout in Europe in more than two years.
In Australia and New Zealand, JDE Peet’s owns local brands Campos Coffee, Sacred Grounds, Piazza D’Oro, L’OR, and Moccona among others.
Once the deal goes through, the companies will be split into two independent, publicly traded businesses: Beverage Co – targeting the North American refreshment beverages market – and Global Coffee Co – targeting the international coffee market. Upon separation, Tim Cofer will be CEO of Beverage Co and Sudhanshu Priyadarshi will be CEO of Global Coffee Co.
“Today’s announcement marks a transformational moment in the beverage industry, as we build on KDP’s disruptive legacy by creating two winning companies, including a new global coffee champion,” says Tim Cofer, CEO of Keurig Dr Pepper.
“Through the complementary combination of Keurig and JDE Peet’s, we are seizing an exceptional opportunity to create a global coffee giant. This is the right time for this transaction, with KDP in a position of operational and financial strength, momentum across our evolved portfolio, and increasing coffee category resilience. By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term.”
Through the acquisition, Keurig Dr Pepper aims to create a global coffee leader serving more than 100 countries with an “unparalleled brand portfolio across all coffee segments, channels, and price points”.
This latest move reflects a broader trend for consolidation in the coffee market.
