One wedding ceremony, one divorce. This is the way the American group Kurg Dr. Bieber fought to Wall Street, as it was 15.7 billion euros (about 18 billion dollars) the Dutch coffee giant JDE Peet.
When CEO, Tim Cover, announced the deal in August, hardly stopped temporarily before revealing his next step: a plan to divide the expanded company into two entities listed to the public in the US Securities Market by 2026.
Logic is simple: focus. The first entity, which is called Global Coffee, will bring to $ 16 billion of revenue over the centuries of Kup’s Kureg’s Kup, Green Mountain Coffee, JDE Peet, such as L’Or, Jacobs, Douwe Egberts, Kenco and Pilao. What was so far in North America – will suddenly extend tourist business, reaching the main markets of JDE Peet – Eurobe, Latin America, and the Middle East.
It will be Beverage Co. With annual sales of $ 11 billion, COFER will supervise the group that is still home to Dr. Bieber, 7 August and Snaple and a set of fast -growing power drinks.
Behind this division lies the disturbances in the coffee industry. During the epidemic, consumers heading to the distinguished breeders and beans were promoted. This sugar faded. Inflation pressure on family budgets, while competition from Nestlé and Starbucks have erupted folders in the United States. It is more than the clay that President Donald Trump’s tariff – to 50 % on Brazilian coffee beans – is large. By linking its future to the global JDE Peet Wallet, Keurig hopes to hedge against these threats.
Meanwhile, she has a clearer growth story: chasing an indelible Gen Z tastes. “Three quarters of GEN Z trying a new drink every month,” Cofer indicated in July during the quarterly results.
Keurig-JDE Peet and its divorce may also predict the broader structural transformations in the food and beverage sector. Pepsico, for example, faces increasing pressure to consider dismantling snacks and drink. Trump’s tariff increases only incentives: the company in Ireland is a low tax, but it is now paying a 15 % tariff to charge it across the Atlantic Ocean.
The bold Keurig division may prove less than the inspection.
