JDE Peet’s, the parent company of coffee brands such as Douwe Egberts and Jacobs, benefits from the strong price increases for coffee: despite pricing conflicts with supermarket chains, both revenue and profit are on the rise.
Significant price increases
The revenue increase of 22.5% to 5.05 billion euros that JDE Peet’s achieved in the first half of this year is almost entirely attributable to price increases of 21.5%. Profit (EBIT) also rose by 2%. The company expects a revenue increase of between 15% and 20% for the full year and stable profits.
According to the company, coffee prices rose by as much as 60% in the past six months, and the producer is passing those price increases on to customers. Nevertheless, the company also sold slightly more coffee in volume: supermarkets purchased more than usual in anticipation of further price increases.
Regarding those price increases, JDE Peet’s is currently still in disagreement with the European purchasing organization Everest, which includes Jumbo, Picnic, Edeka, and Intermarché among others. So far, this conflict has not led to empty shelves in stores.
