JDE Peet’s is brewing an impressive IPO

by | May 19, 2020

JAB Holding, the investment firm behind Peet’s Coffee, is moving forward with an initial public offering (IPO) of its coffee business, JDE Peet’s, aiming to raise up to $2.2 billion. If that sounds like a lot of money…that’s because it is.

  • It would be one of the biggest IPOs this year so far.

An IPO (Initial Public Offering) refers to the process by which a private company can go public by selling its stocks to the general public. An IPO allows a company to raise capital (money) from public investors.

JDE Peet’s owns brands selling coffee through both cafes and grocery stores, including Peet’s Coffee, Jacobs Coffee, Douwe Egberts, Senseo, and Tassimo.

  • About 80% of JDE Peet’s coffee is sold for at-home consumption

The IPO comes at a rough time for consumer-goods companies, as shoppers cut back on spending. However, analysts say coffee is relatively resilient.

“Coffee demand is notoriously inelastic. People tend to keep drinking coffee through thick or thin,” said Steve Pollard, a coffee market analyst at brokerage Marex Spectron. “At times of economic recession, people tend not to drink less coffee, but instead drink lower-quality coffee.”

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