JDE Peet's Announces New Brand-Led Strategy Under New CEO – CoffeeTalk

JDE Peet’s, a coffee and tea company, has unveiled a new strategy aimed at simplifying its portfolio and organizational model under its new CEO. The company, which sells coffee, tea, and hot chocolate under over 50 brands globally, targets 500 million euros ($589 million) of net productivity savings, with over half of them to be achieved by the end of 2027. The strategy is brand-led and focuses on three Big Bets: Peet’s, L’OR, and a strategically selected set of ten iconic brands, led by Jacobs. The “big bets” are chosen due to their ability to meet both current and emerging consumer needs, driving long-term growth and market relevance.

Jefferies analysts wrote ahead of the strategy announcement that the company under its former management team between 2022 and 2024 had made costly strategic decisions, exposing it to poor capital discipline, particularly on U.S. machine expansion. The group has also been affected by a rise in coffee bean prices that has bit into its margins.

JDE Peet’s set financial targets for 2030-2032 and beyond, expecting gross profit to grow between 4% and 7% and adjusted operating profit to rise by 5% to 8%, with a cumulative free cash flow of at least 3.5 billion euros during the period.

Read More @ Reuters