JDE Peet's Attributes Soaring Costs To 'Unprecedented' Coffee Prices – CoffeeTalk

JDE Peet’s, a coffee and tea company that is set to be acquired by Keurig Dr Pepper, announced on Tuesday significant increases in costs attributed to unprecedented price rises in green coffee beans and various materials, leading to a staggering 1.6 billion euros ($1.9 billion) increase in expenses for the year 2025. The company reported that it faced nearly a 27% higher expenditure on coffee beans, tea leaves, and other materials compared to the previous year, as global coffee prices surged to record levels over the past year due to factors such as trade tensions and extreme weather conditions.

In terms of sales performance, JDE Peet’s experienced a 15.3% organic sales growth, reaching 9.92 billion euros, largely fueled by rising prices, despite a decline in volume sales of approximately 4.3%. The adjusted core earnings for the full year were roughly consistent with the previous year’s figure, amounting to 1.59 billion euros.

To address the rising costs and improve profitability, JDE Peet’s has implemented productivity measures and divestitures, which include closing plants and ceasing operations in certain non-core business areas. The company aims to achieve half of its 500-million-euro cost-cutting programme by 2027.

The anticipated acquisition by Keurig Dr Pepper, valued at about $18 billion, is expected to finalize early in the second quarter, aligning with prior expectations set by the U.S. beverage giant.

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