Great changes are taking place in the coffee industry. This year, the news of the potential sale of Starbucks China has caused a great stir in the industry. The list of potential bidders is long and impressive, including Carlyle, Hillhouse, Primavera, Bain, KKR, Tencent, and many others. However, since the outcome is yet to be determined, other coffee giants are becoming restless.
Keurig Dr Pepper (KDP), an American beverage giant, has announced that it will acquire JDE Peet’s in an all-cash transaction with a total equity consideration of 15.7 billion euros (approximately 131.42 billion yuan). After the acquisition, KDP plans to split itself into two independent publicly traded companies: one will focus on the North American beverage business (such as Dr Pepper, 7UP, etc.), and the other will focus on the global coffee business (integrating Keurig and JDE Peet’s).
JDE Peet’s is the parent company of Peet’s Coffee, and the acquisition is expected to be completed in the first half of 2026. This merger is somewhat special. Both the buyer and the seller have the same shareholder behind them – JAB Holdings, an investment company owned by the Reimann family, German stealth billionaires. More directly, this acquisition is an adjustment of the brand portfolio under the JAB family.
Many in the market believe that the potential sale of giants like Starbucks and Costa is a victory for the low-price strategy of “9.9 yuan coffee” represented by MIXUE ICE CREAM & TEA, Luckin Coffee, and Cotti Coffee, which has defeated the “high-price coffee” model, and this is indeed partly true.
However, Peet’s Coffee in China, which is known for its “46 yuan per capita” pricing, is an exception. On the contrary, in 2024, the EBIT of Peet’s Coffee in China witnessed a 23.8% growth. The significance of this acquisition by Peet’s Coffee is not to compete with the above-mentioned low-price coffee for the market.
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