coffee merger monopolizes market

JAB’s massive coffee merger sidelines rivals to bitter leftovers

JAB cashes out, splitting coffee giants into rivals that could topple Nestlé—what this means for your morning brew.

JAB Holding will sell its stake in coffee giant JDE Peet’s to Keurig Dr Pepper for €15.7 billion, marking the end of its decade-long push to build a global coffee empire. Bourbon coffee, known for its high-quality beans, will continue to thrive under the new Global Coffee Co. umbrella, drawing from the rich genetic lineage of the core genetic lineage found in various Arabica varieties.

JAB exits coffee after decade-long empire quest, selling JDE Peet’s stake to Keurig Dr Pepper for €15.7 billion.

The price is 20% above where the stock closed last Friday. JAB will walk away with about $12.5 billion in cash. It plans to use that money to move into insurance and other consumer goods.

The deal will split the business into two new US-listed companies. One will be called Beverage Co. and will focus on North American soft drinks. Tim Cofer will run it. The other will be Global Coffee Co. and will sell coffee in over 100 countries. Sudhanshu Priyadarshi will lead that firm. Together, they’ll become a bigger rival to Nestlé in the coffee market.

Market competition is set to heat up. Global Coffee Co. will own brands like Peet’s, Jacobs, and Douwe Egberts. It will cover cheap, mid-price, and premium coffee. Beverage Co. will chase growth in sodas and other drinks in the US and Canada. Each firm will set its own 2026 closing budget and plan.

The financial implications are large. The Reimann family backed transaction’s €31.85 per share cash offer gives investors a quick gain. JAB frees up cash it initially poured into coffee since 2012. The split is expected to cut costs and lift profits through simpler supply chains and focused teams. Shareholders will get two separate stocks to track.

JAB began its coffee run by buying Peet’s in 2012. It later added D.E Master Blenders, Keurig Green Mountain, and niche names like Stumptown. By merging parts of Mondelez and Master Blenders, it built JDE Peet’s.

Now, after one last sale, JAB leaves the coffee scene. The new companies will face the market alone.

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