Owner of Peet's Coffee plans $2.2 billion IPO

• JDE Peet's, owner of a number of coffee brands including Peet's Coffee, plans to raise upward of $2.2 billion in an IPO on the Euronext stock exchange.
• According to the company, JDE Peet's is the largest pure-play coffee and tea group by revenue, serving around 130 billion cups of coffee and tea in 2019.
• JAB Holding, the investment firm involved in JDE Peet's, is moving forward with the planned IPO, betting that investors will have appetite for a food staple that typically has steady consumer demand regardless of the economic environment.
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JDE Peet's, the owner of a number of coffe brands including Peet's Coffee, plans to move forward with a $2.2 billion initial public offering on the Euronext stock exchange.

The company plans to use the proceeds to pay back part of its outstanding debt to improve its leverage ratio.

JDE Peet's is the largest pure-play coffee and tea group by revenue, having served around 130 billion cups of coffee and tea in 2019, according to the company.

Brands owned by JDE Peet's include Peet's Coffee, Jacobs Coffee, Senseo, Tassimo, and Douwe Egberts.

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JAB Holding, the investment firm that is pushing ahead with the IPO, is betting that investors will have an appetite for a food staple that tends to show resilience amid downturns in the economy.

JDE Peet's derived 79% of its 2019 revenue from coffee that's sold for at-home consumption, a category that has held up well during coronavirus lockdowns as grocery store sales surge due to pantry-loading by consumers.

That's in stark contrast to Starbucks, which derives a bulk of its revenue from its physical cafes, which have been negatively impacted by the coronavirus lockdowns.

JAB's other investment holdings include Krispy Kreme, Panera Bread, Keurig Dr Pepper, and Pret A Manger.

JAB acquired Peet's Coffee for nearly $1 billion in 2012, and merged it with Jacobs Douwe Egberts Coffee, a European coffee brand, in 2019.

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