JDE Peet’s unveils brand-led strategy to accelerate growth

At its Capital Markets Day on 1 July in Amsterdam, JDE Peet’s, the world’s leading pure play coffee company, unveilled its ‘Reignite the Amazing’ strategy for sustainable value creation. The company outlined a clear, detailed roadmap to drive performance and shape JDE Peet’s long-term future. The new strategy is brand-led and centred around 3 Big Bets: Peet’s, L’OR and ten local icons led by Jacobs. The brands have been selected because of their ability to meet both current and emerging consumer needs, driving long-term growth and market relevance.

Underpinning this transformation is a three-phased strategic framework designed to, among others:

• Simplify portfolio and organizational model
• Boost operational efficiency and productivity
• Deliver EUR 500M of net savings with more than 50% of savings achieved by the end of 2027
• Reinvest 50% of savings into high-potential growth initiatives and selective high-impact capabilities, the remaining 50% will strengthen profitability
• Expand its global presence through new growth avenues.

Commenting on the new strategy, Rafa Oliveira, CEO of JDE Peet’s, said, “JDE Peet’s is a fantastic company with strong foundations. As the world’s largest pure-play coffee company, we are uniquely positioned to capture the long-term opportunities this resilient and vibrant coffee category offers. Our ‘Reignite the Amazing’ strategy is brand-led and is centred around three Big Bets: Peet’s, L’OR and a strategically selected set of ten iconic brands, led by Jacobs.”

Oliveira said that JDE Peet’s new strategy provides a clear framework consisting of an “ambitious and focused plan to unlock sustainable, profitable growth and drive strong cash generation by combining the scale and expertise of an industry leader with agility, creativity and the innovative mindset of a startup. Led by our strong, iconic brands and backed by our challenger mindset, and enhanced capabilities, we will be laser-focused on executing with excellence, delivering sustained, long-term value for our stakeholders and generating shareholder returns that are top-tier among CPG companies.”

JDE Peet’s strategy to drive sustainable value creation is supported by a clear capital allocation framework consisting of four priorities:

1. Allocate and focus resources to grow the three Big Bets organically, funded by reinvesting part of the productivity savings.
2. Further strengthen the balance sheet, targeting a net leverage of 2x.
3. Enhance shareholder returns through gradual, steady dividend growth, complemented by share buybacks.
4. Refocus M&A activities, deprioritising leveraged acquisitions and favouring asset-light opportunities.