JDE Peet’s divests Turkish tea unit, streamlines U.S. operations in strategic overhaul
JDE Peet’s makes strategic portfolio shifts ahead of Capital Markets Day, reinforcing focus on profitability and global operational efficiency.
TURKEY – JDE Peet’s, the world’s largest pure-play coffee company, has announced a strategic move to divest its tea business in Turkey, which generates €60 million (US$67.5M) in annual sales.
While the sale price has not been disclosed, the divestment aligns with the company’s broader strategy to streamline operations and improve margins.
The tea business in Turkey was reportedly putting pressure on overall profitability, prompting the decision to exit that market segment.
Alongside this move, JDE Peet’s will also discontinue the roll-out of its L’Or Barista coffee machines in the United States. Instead, the company plans to transition L’Or capsules to its Peet’s Coffee division, which will now manage the brand’s presence in the U.S. market.
These changes are part of JDE Peet’s ongoing transformation and simplification initiatives aimed at optimizing its business model.
The company has confirmed that more details about its strategic roadmap and value creation opportunities will be shared during its Capital Markets Day event scheduled for July 1, 2025.
JDE Peet’s reaffirmed its full-year 2025 financial guidance and reported that its first-quarter performance was in line with internal expectations.
The company noted that despite weak market volumes in January and February, a rebound in demand began in March, particularly in Europe.
Price negotiations have been mostly finalized, and in light of a 28% increase in coffee prices between January and April 2025—compared to the second half of 2024—JDE Peet’s is evaluating further pricing actions to manage costs effectively.
However, the company does not foresee any material impact from U.S. trade tariffs on its performance.
Meanwhile, the Board of Directors has proposed the appointment of Rob de Groot as a non-executive board member.
De Groot brings over three decades of experience from Reckitt Benckiser, where he held senior leadership roles across global markets.
His appointment is pending approval at the Annual General Meeting scheduled for June 19, 2025. Until then, he will serve as a stand-in non-executive director.
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