Jacobs Douwe Egberts is the world's second biggest coffee company (after Nestle), created in 2015 from the merger of what was previously DE Master Blenders 1753 with the corresponding division of food giant Mondelez. Itself demerged three years previously from the old Sara Lee conglomerate, and acquired by family investment group JAB Holdings a year later, Master Blenders was already one of the leaders in the global sector, and #1 in several European markets including the Netherlands, Belgium, Denmark and Hungary. Lead brands include Douwe Egberts, Pickwick teas and the Senseo home coffee system. The Mondelez deal added Jacobs, Gevalia, Kenco and the Tassimo system, among others. The merged group was obliged to divest a handful of brands, most notably Carte Noire, for competitive reasons. Although the core of its business is in Europe, JDE also has a strong presence in selected other markets including Brazil (where it is the local #1 with Pilao and other brands) and Australia (with the Moccona brand), and is gradually expanding that footprint through further acquisitions. One of the most notable to-date is Singaporean coffee and tea producer Super Group, makers of the second largest instant coffee brand in Southeast Asia after Nestle's Nescafe. The group now manages a portfolio of around 70 separate regional or international brands. In addition to controlling all three of the main rivals to Nestle's Nespresso coffee system - Keurig (via sister company Keurig Dr Pepper), Tassimo and Senseo - JDE also produces single-serve capsules that are compatible with its arch-rival under the L'Or brand. JAB Holdings had also added a string of other businesses to its portfolio, operating separately but under common ownership, several of which are also involved in the coffee business. At the end of 2019, JAB transferred Peet's and Stumptown into JDE to form JDE Peet's, and began the process of launching an IPO. JDE CEO Frederic Larmuseau stepped down at the same time, and was replaced by Peet's chief Casey Keller. The IPO of 16.5% of equity went ahead in June 2020. However, US-resident Keller in turn resigned soon afterwards (as a result of pandemic-related travel restrictions) and was succeeded by Fabien Simon, formerly CFO. JAB director Olivier Goudet is chairman. Revenues for 2019 were €6.9bn, with net profit of €424m. Europe alone accounts for more than half of sales, with France, Germany and the Netherlands together accounting for a third. The US contributed 13%. Mondelez retains a 23% equity stake in the business.
Capsule checked 28th September 2020
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Who are the competitors of Jacobs Douwe Egberts? JDE competes with Nestle, Kraft Heinz, Tchibo, JM Smucker, Strauss Group, Lavazza, Unilever and Starbucks, among others. See Non-Alcoholic Drinks index for other companies
Historical profile information for Jacobs Douwe Egberts
Adbrands Daily Update 19th May 2020: JAB Holdings has confirmed plans to press ahead with an IPO of newly formed JDE Peet's despite the upheaval caused by the Coronavirus pandemic. Sales of coffee have remained buoyant under lockdown. The business comprises the existing Jacobs Douwe Egberts coffee company plus US roatser/retailers Peet's and Stumptown. JAB aims to raise between €1.5bn and €2bn from the sale of a minority stake in the business, which would be quoted on Amsterdam's Euronext exchange. The sale will comprise new shares as well as include some of the stake currently owned by Mondelez.
Adbrands Weekly Update 18th Oct 2018: The bitter rivalry in the coffee sector between Nestle and JAB Holdings - owners of Keurig and Jacobs Douwe Egberts - just got even more acrimonious. JAB has secured a license from Italy's Illy Caffe to begin marketing Illy-branded generic capsules to fit Nestle's Nespresso coffee system. Meanwhile, Illy's Italian rival Lavazza is trying to keep up with the two global leaders with acquisitions of its own. It has agreed to buy Mars Inc's Flavia and Klix coffee vending systems, used mostly in offices and other away-from-home settings. No price was disclosed but Reuters estimated a price tag of $650m, a little under twice annual revenues. Perhaps the most unusual addition to the coffee machine sector comes from GlaxoSmithKline, which this week launched a line of "PowerPods" for its Theraflu cold and flu remedy in the US. The single-serve capsules are designed to work with "most single-serve coffee-makers" including both Keurig and Nespresso.
Adbrands Weekly Update 15th Sep 2017: There were a series of significant purchases by leading packaged goods manufacturers this week. Having missed out on a string of major acquisitions initiated by new rival Jacobs Douwe Egberts and its controlling shareholders, Nestle finally took steps to protect its key global coffee franchise with a deal for fast-growing US firm Blue Bottle Coffee. The target company retails a wide variety of premium speciality coffee blends direct to consumers via ecommerce subscription or through a small but expanding chain of retail outets. Blue Bottle is hoping to have 55 stores in the US and Japan by the end of this year. Despite its small size, Nestle is understood to have acquired a 68% shareholding in the business for around $500m. Current management led by CEO Bryan Meehan and founder & chief product officer James Freeman will continue to run the company and control the remaining shares. It will operate as a standalone entity, partnering Nestle's existing Nescafe and Nespresso brands.
Adbrands Weekly Update 17th Mar 2016: Italy's leading coffee roaster Luigi Lavazza completed its purchase of the Carte Noire and Merrild coffee brands, local leaders in France and Denmark respectively. The price was around €700m. Lavazza agreed to buy the brands last summer. Their previous owners Mondelez and DE Master Blenders were ordered by regulators to divest them as a condition of their merger to create new global sector leader Jacobs Douwe Egberts.
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