JDE Peet’s: “Every cup of coffee 1 cent more expensive”

2022 will be a good year for coffee group JDE Peet’s. Prices have risen by as much as 16 % in the past six months, but the group has hardly lost any customers as a result. Het wordt een goed koffiejaar voor Douwe Egberts-eigenaar . De prijzen stegen het voorbije halfjaar met liefst 16%, maar daar verloor de groep nauwelijks klanten mee.

Volume remains stable

JDE Peet’s saw its turnover rise nearly 16 % in the first half of the year, to 3.9 billion euros. The growth was entirely due to price increases, as the volume decreased slightly (- 0.2 %). The fact that prices rose by an average of 16 % could not scare away consumers. The group owning Douwe Egberts and others emphasised that the prices have been increased in an “affordable way”, saying it only pushed through “price increases of less than 1 euro-cent per cup, on average”.

Growth was particularly strong outside the European home market, in the regions of Latin America, Russia, the Middle East and Africa. The prices there rose by 44 %, which resulted in 45.2 % more turnover. JDE Peet’s explains that in these countries, the multinational has started to focus on more expensive brands, such as L’Or coffee capsules.

Prices continue to rise

“Confronted with an exceptional level of cost inflation, we stepped-up efficiencies“, the company states in a press release. This is also reflected in the profit figures: net profit rose by 17.3 % to 523 million euros, exceeding analysts’ expectations.

JDE Peet’s expects double-digit revenue growth for the rest of the year, despite expecting “the business environment to remain volatile for the remainder of 2022”. The coffee roaster promises to continue increasing prices in line with inflation and is counting on stable gross profits compared to last year.