(Reuters) -Coffee and tea company JDE Peet's on Wednesday lifted its annual forecast after posting higher-than-expected operating profit for the first half of 2025, supported by strong revenue growth,
JDE Peet's Anticipates Minimal Impact from Brazilian Coffee Tariffs
Impact of Tariffs on JDE Peet's
By Mateusz Rabiega
CEO's Insights on Coffee Supply
(Reuters) -The CEO of JDE Peet's said on Wednesday that U.S. coffee prices would have to go up if President Donald Trump's threatened tariffs on Brazil included coffee from the world's top exporter.dependent
Financial Performance and Forecast
However, the direct impact from U.S. tariffs on the Jacobs coffee maker would be small, CEO Rafael Oliveira told analysts in a post-earnings call.
Market Reactions and Price Volatility
Trump said earlier this month that he would raise duties on Brazilian imports to 50%, effective August 1, prompting Brazil's government to plead with the U.S. administration to exclude food products.
U.S. Commerce Secretary Howard Lutnick said on Tuesday that natural resources that are not grown in the United States, including coffee and cocoa, could be exempt from the tariffs.
JDE Peet's, also known for its L'Or, Tassimo and Douwe Egberts brands, is less exposed to these risks than many of its rivals, as its supplies are less dependent on Brazil, and it has no plans to change suppliers.
"The proportion that we use of Brazilian coffee is significantly smaller than most other coffee players ... less than 30% of what we consume," added Oliveira, who became the CEO of the Dutch coffee and tea company last October.
JDE Peet's lifted its annual forecasts on Wednesday after reporting consensus-beating half-year adjusted operating earnings of 709 million euros ($813.33 million), thanks to sales growth that defied already high coffee prices.
It expects 2025 organic sales to grow in a high-teens percentage, compared with a previous forecast for high single-digit growth. It also forecast stable adjusted operating profit for the year.
Soaring coffee prices are a thorn in the side of both suppliers and retailers, with JDE Peet's flagging an average yearly rise of 60% in green coffee prices in the first half of 2025.
"Price volatility (is) expected to remain high, due to supply concerns ... and speculative activity," JDE Peet's said in its half-year presentation.
Its shares rose more than 11% by early afternoon in Amsterdam, leading gains on Europe's benchmark STOXX 600 index.
($1 = 0.8656 euros)
(Reporting by Mateusz Rabiega in Gdansk; Editing by Sonia Cheema and Muralikumar Anantharaman)
