There are two worlds when we talk about coffee brands. On the one hand, the numerous toasters and small brands that focus on the Specialty coffee. On the other, a handful of conglomerates huge that copied the shelves of the supermarkets. Nestlé, Starbucks, Lavazza Or Jde Peet’s are some of those giants, but a brand of sodas arrives to take a good bite to the increasing, coffee cake worldwide.
As? Buying to one of its main competitors: the holders of Marcilla or L’Or.
KDP. They are the acronym of Keurig Dr Pepper, one of the world’s largest beverage companies. This is the result of the fusion in 2018 of Dr Pepper Snapple Group, holders of the 7up or Schweppes brand, among others, and of Keurig Green Mountaina powerful and historical coffee brand that revolutionized the monodosis system in the United States in the 90s both in offices and in homes.
They are a giant with a assessment of about 43,000 million euros. The group manages more than 125 brands, but talking about coffee, in the United States they have Keurig coffee makers With own capsules, In the pure Nestlé style with the Nespresso. Well, that megagroup has just launched an operation of 15.7 billion euros to buy one of the largest coffee companies in Europe, the Dutch Jde Peet’s.
Jde Peet’s. This is the matrix of emblematic brands such as Marcilla, Saimaza and L’Or in the Café World, but also of Senso or Hornimans, among others. Before the purchase, the company’s valuation was about 13,000 million euros and, Despite all the problems of the coffee sector these last months and price increases, They closed 2024 with a growth of 13.2%, exceeding the forecasts of the 1,250 million euros.
Coffee Empire. Although in Europe they remained stable, performance in areas such as Latin America, Russia, the Middle East and Africa was what promoted the company during the last year, translating in an increase of 21%. And, precisely, that is what KDP seeks with the purchase of Jde Peet’s: entering a market that they have not exploited, but in which the brands of the Dutch are well established.
To fulfill the strategy, KDP will create two entities when the purchase is closed: Beverage CO and Global Coffee Co. The latter seems like a rebranding of what so far was Jde Peet’s.
Objective: Nestlé. This purchase occurs in a context of a Strong up coffee price increase In recent months thanks to a Perfect storm due to factors such as bad crops and shortage problems, as well as a World demand growth Coffee, especially in China. And the group they have in the sight is Nestlé.
This giant has its top priority in coffee, Representing About 20,000 million euros in 2024 with brands such as Nescafé, Nespresso, Dolce Taste, Bonka and a strategic alliance with Starbucks to create home products (more capsules). As we read in Reutersanalysts already estimate that this new KDP entity will have a business size similar to Nestlé, both with a 20% share in the global market.
Although the purchase is there and there is an agreement between both parties, such an operation should be reviewed carefully, but it is expected to be resolved in the first half of 2026. We will see what happens with its brands, but in a context in which coffee not only crosses problems due to climate change, but Also for tariffsthis fusion between the American and the European makes all the way.
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