What Does JAB's JDE Peet's Deal Mean for Arabica Coffee Brands?
JAB Holding Company will acquire all of Mondelez International's shares in JDE Peet's for 2.16 billion euros, roughly 16.7 billion yuan. The deal lifts JAB's stake in the company to 68 percent, making it the largest controlling shareholder of the parent of Peet's Coffee, and JDE Peet's stock rose 16 percent that day.
JDE Peet's owns Peet's Coffee and Pickwick Tea and set the record for Europe's fastest IPO in Amsterdam in 2020. Peet's Coffee has operated in China since 2017 and now runs 225 stores across 12 provinces and municipalities. JAB, founded in 2012 and controlled by the Reimann family, manages more than US$50 billion and called the transaction an important milestone.
Luxembourg-based private equity giant JAB Holding Company recently announced that it will acquire all of Mondelez International's shares in JDE Peet's for 2.16 billion euros (approximately 16.7 billion RMB). After the transaction is completed, JAB's shareholding in JDE Peet's will jump to 68%, making it the largest controlling shareholder of this parent company of Peet's Coffee. As a leading global pure-play coffee and tea company, JDE Peet's owns brands including Peet's Coffee and Pickwick Tea, and in 2020 set the record for Europe's fastest IPO in Amsterdam. Since Peet's Coffee entered China in 2017, it has opened 225 stores, covering 12 provinces and municipalities. This transaction was called an important milestone by JAB's CEO, and the market reaction was positive, with JDE Peet's stock surging 16% that day. Front Street Coffee continues to follow global coffee industry developments, bringing in-depth analysis to enthusiasts.
Recently, Luxembourg-based private equity firm JAB Holding Company announced that it has agreed to acquire all of Mondelez International's shares in coffee and tea group JDE Peet's for 2.16 billion euros (approximately 16.7 billion RMB).
It is reported that after the completion of this transaction, JAB Holding's shareholding in JDE Peet's will increase to 68%, making it the largest controlling shareholder of JDE Peet's.
"These transactions are an important milestone for JDE Peet's, which is now a broader blue-chip company. JAB is full of confidence in the resilience of the global coffee industry and JDE Peet's long-term value creation prospects. We are fully committed to remaining the major shareholder of the world's leading pure-play coffee and tea company," said Joachim Creus, CEO of JAB Holding Company.
Public information shows that JAB Holding Company is a privately owned German family investment holding group founded in 2012, headquartered in Luxembourg, Europe's largest fund management center and a tiny kingdom between France and Germany.
JAB Holding is controlled by the Reimann family. It originated from the chemical company Benckiser, founded in 1823 by German businessman Johann Adam Benckiser (the source of the abbreviation JAB), which later merged with the British Reckitt & Colman in 1999 to become Reckitt Benckiser Group.
JAB Holding has more than US$50 billion in managed capital and focuses on fast-moving consumer goods, including coffee, soft drinks and confectionery, as well as hotel brands and insurance.
As is well known, JDE Peet's is the parent company of the famous Peet's Coffee. The origins of JDE Peet's can be traced back to a grocery store in Joure, the Netherlands, which first opened in 1753. It owns tea and coffee brands around the world, including Peet's Coffee and Pickwick Tea.
Peet's Coffee, also known as Peet's, was founded by Alfred Peet in Berkeley, California, USA, in 1966. It entered China in 2017 and has a history of nearly 60 years. It is a coffee chain brand service provider and, because of its contributions to the specialty coffee field, is known in the industry as the "grandmaster" of coffee.
From a niche specialty coffee shop to a presence across most of the world, JDE Peet's was listed on Euronext Amsterdam in 2020 with a market value of as much as 120 billion RMB.
It is understood that JDE Peet's completed the listing process in only ten days, setting the record for the fastest IPO in European history. On its first day of trading, its market value reached 15.6 billion euros (120 billion RMB), setting a new record for the largest IPO in Europe since 2018.
According to its official website, Peet's Coffee upholds its original aspiration of "coffee first." For more than half a century, it has insisted on small-batch handmade roasting of coffee beans, going deep into coffee-producing regions around the world, selecting high-quality Arabica coffee beans, and handcrafting them "so that every cup is fresh, rich and smooth."
Peet's Coffee currently offers consumers many types of products, including coffee beans, brewed coffee, bottled coffee, cakes, bread and light meals, with stores covering many countries including the United States, China and Japan.
Since opening its first store in Shanghai in 2017, Peet's Coffee currently has 225 stores in China, covering 12 provinces and municipalities, among which Shanghai leads by far with 74 stores.
It is reported that after the news was announced that JAB Holding Company would acquire all shares in JDE Peet's, the market reaction was positive, and JDE Peet's stock soared 16% on Monday.
As a well-known domestic coffee brand, Front Street Coffee always follows global coffee industry developments and provides coffee enthusiasts with fresh, professional information and product recommendations.
Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
