JDE Peet’s expands regional presence in Brazil with acquisition of JAV Group
BRAZIL – JDE Peet’s, the world’s leading pure-play coffee and tea company by revenue, has agreed to acquire the Brazilian coffee & tea business from JAV Group for an undisclosed sum.
Upon completion of the transaction, which is expected to close in 2024, the acquisition will complement JDE Peet’s’ existing portfolio of brands predominantly sold in the southern regions of Brazil.
It will also increase JDE Peet’s’ scale and national coverage in Brazil, a market that offers compelling prospects for both volume and value growth.
As a result, the acquisition offers long-term value creation potential through attractive revenue and cost synergies.
JAV Group’s Maratá brands, including Café Maratá and Chá Maratá, are mainly present in the northern region of Brazil. The business employs around 1,200 employees and operates two manufacturing plants.
“Over the last three years, we have been focused on transforming JDE Peet’s into a faster growing, correctly invested, and more sustainable company. We are now ready to take the next step and continue our disciplined path of geographical expansion and diversification,” says JDE Peet’s CEO Fabien Simon.
“Following completion, this acquisition will represent a highly complementary proposition to our existing business in Brazil, which has been building strong momentum in recent years, allowing us to serve more cups across a full range of price points and product offerings while expanding our regional presence in Brazil.”
JAV Group, conducted by the Vieira Family and with more than 50 years of existence in the Brazilian market, comprises a conglomerate of companies operating in the most varied market segments, such as food, agribusiness, packaging, and exports.
José Augusto Vieira, founder of JAV Group, commented: “Since Maratá was founded over 50 years ago, we have stayed true to our mission of providing innovative, socially responsible, and high-quality products to consumers across Brazil. “
“I am very proud of the strong and successful coffee & tea platform we have built, and I am very pleased that by handing over our coffee & tea business to JDE Peet’s, the world’s leading pure-play coffee & tea company, we are securing the long-term development and success of this great business.
Brazil produces about a third of the world’s coffee, making the country by far the world’s largest producer.
According to Valor International quoting Abic, the trade group that represents roasters, Brazil’s coffee consumption fell by 1.01% in 2022, to 21.3 million bags, after an average adjustment of prices at points of sale of 35.4%.
The per capita consumption of raw coffee among Brazilians was almost 6 kilos per year and 4.77 kilos of roasted coffee – in this case, a decrease of 1.61% compared to 2021 in both cases.
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