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JDE PEETS’ BIG BET ON CAPSULE COFFEE

JDE PEET CAPSULE

Last Updated on October 23, 2020 by monica chan

JDE Peet’s (EURONEXT: JDEP), the world’s largest pure-play coffee and tea group by revenue, today announced plans to invest EUR 110 million ($129.5 million) in its global supply network through the installation of new high-speed aluminum coffee capsule production lines.

These additional lines will be installed in stages over the coming 18 months beginning with new lines in Andrézieux, France that will become operational in the course of H1 2021.

These investments are the latest in a series of manufacturing capacity expansions designed to meet the increased consumer demand for single-serve products.

The total EUR 110 million investment will increase JDE Peet’s capsule production capacity by +60% to meet the rapidly expanding consumer demand for premium Single-Serve coffee.

The total Single Serve coffee category has seen tremendous growth, a trend that is expected to continue, with aluminium coffee capsules serving as a strong driver. Fabien Simon, CEO of JDE Peet’s.

Since pioneering the aluminum coffee capsule market in grocery retail back in 2016, JDE Peet’s has quickly gained significant market share in one of the fastest-growing premium coffee segments and has successfully applied this technology throughout its brand portfolio in 47 markets.

According to Euromonitor, JDE Peet’s represents ~13% of the total Single Serve coffee category, which is currently valued at EUR 17 billion ($20 billion) and is expected to grow at an annual rate of 7.8% to EUR 23 billion ($27 billion) by 2024, fuelled by consumers’ increasing preference for premium Single-Serve coffee products.

We were the first to bring aluminium coffee capsules into grocery stores back in 2016, driving general category growth, increasing consumer choice and creating value for our customers. This new strategic investment ensures that JDE Peet’s is well positioned within the market as this category continues to expand. Fabien Simon, CEO of JDE Peet’s.

Since the introduction of aluminum coffee capsules in 2016, the Andrézieux factory has become a major employer in the Auvergne-Rhône-Alpes region, growing its workforce by more than 60% (150 jobs).

The factory produces more than 400 different types of coffee and recently celebrated the production of its 10 billionth aluminum coffee capsule.

Written by Nick Baskett

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