Feb 24 (Reuters) - Coffee and tea group JDE Peet's said on Tuesday price hikes for green coffee and other items resulted in total cost inflation of 1.6 billion euros ($1.9 billion) last year. The
JDE Peet's Faces $1.9 Billion Cost Surge Due to Coffee Prices
Feb 24 (Reuters) - Coffee and tea firm JDE Peet's, soon to be acquired by Keurig Dr Pepper, said on Tuesday that an "unprecedented" rise in prices of green coffee beans and other items led to a 1.6 billion euro ($1.9 billion) jump in 2025 costs.
As global coffee prices hit record highs last year amid trade tensions and extreme weather, the Netherlands-based company said it spent almost 27% more to buy coffee beans, tea leaves and other materials than a year earlier.
Impact of Rising Coffee Prices on JDE Peet's
It reported 15.3% organic sales growth to 9.92 billion euros for the year, driven by higher prices despite a 4.3% volume drop. Full-year adjusted core earnings were roughly in line with the 2024 number at 1.59 billion euros.
JDE Peet's said productivity measures and divestitures, which include plant closures and the discontinuation of some non-core businesses, would continue this year, as it aims to achieve 50% of its 500-million-euro cost-cutting programme by 2027.
The company added that the roughly $18 billion acquisition by Keurig Dr Pepper should close early in the second quarter, in line with expectations communicated by the U.S. drinks giant.
Keurig Dr Pepper Acquisition Details
Shares of JDE Peet's were largely unaffected at market open.
($1 = 0.8489 euros)
(Reporting by Alessandro Parodi, editing by Milla Nissi-Prussak)
