JDE Peet’s unveils ‘Reignite the Amazing’ strategy to drive sustainable growth, brand simplification
The coffee giant plans €500 million in savings, focuses on three major brand bets, and sets clear long-term performance targets.
NETHERLANDS—JDE Peet’s, the world’s largest pure-play coffee and tea company, has announced a comprehensive new strategy titled “Reignite the Amazing. ”
The strategy aims to simplify its portfolio and operational model and deliver long-term sustainable value.
The strategic roadmap, which focuses on improved performance and future growth, outlines €500 million (US$591M) in targeted net productivity savings, with more than half of that amount expected to be achieved by the end of 2027.
The new approach is spearheaded by CEO Rafael Oliveira, who took over leadership in late 2024.
Central to the strategy are three key brand investments—or “Big Bets”—which include Peet’s Coffee, L’OR, and a collection of ten iconic regional brands led by Jacobs. These brands were chosen based on their relevance to current and evolving consumer demands, and their potential to drive long-term growth and market competitiveness.
“Our ‘Reignite the Amazing’ strategy is brand-led and centres around Peet’s, L’OR and ten strategically selected local icons,” said Oliveira in a statement.
He emphasised the importance of brand focus to ensure stronger operational and financial outcomes.
The strategy arrives after previous leadership decisions between 2022 and 2024 were criticized for poor capital allocation, especially in expanding machine operations in the U.S. that failed to scale.
Additionally, rising green coffee bean prices have strained margins, with no expected near-term relief in raw material costs.
As part of its mid-term financial outlook, JDE Peet’s expects gross profit to increase between 4% and 7% from 2026 to 2027, and adjusted operating profit to grow by 3% to 4%.
The company projects cumulative free cash flow of at least €2 billion (US$2.4B) over the same period.
The strategy is underpinned by a four-tiered capital allocation framework: reinvest savings into the three Big Bets, strengthen the balance sheet with a target net leverage of 2x, enhance shareholder returns via dividends and share buybacks, and refocus M&A efforts towards asset-light opportunities while steering away from leveraged acquisitions.
In June, Jacob Douwe Egberts (JDE) announced its intention to close its Banbury facility in 2025, marking the end of nearly 60 years of operations.
The closure will impact approximately 160 employees, with formal consultations set to begin soon.
The Banbury plant, originally opened in 1964 as GF Factory producing food and drink items such as Bird’s Custard, became a coffee manufacturing hub following acquisitions by Kraft and later by JDE in 2015.
Coffee production at the facility ceased in 2023, leaving only packaging operations active.
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