JDE Peets to produce Costa Coffee-branded aluminium capsules in UK 

UK – JDE Peet’s, backed by JAB Holding, has entered into an agreement to manufacture, distribute, and sell Costa Coffee-branded aluminium capsules in the UK starting September 2024.  

This collaboration expands JDE Peet’s existing partnership, which has been manufacturing Costa Coffee-branded single-serve coffee pods for its Tassimo coffee pod machine since 2012. 

The new agreement focuses on enhancing the product range for JDE Peet’s Nespresso-compatible L’OR Barista coffee machine, launched in the UK in September 2022.  

Notably, the manufacture, distribution, and sale of other Costa Coffee products, including instant coffee, whole beans, and roast and ground coffee, will remain under Costa Coffee’s purview and are not covered by the extended partnership. 

Fabien Simon, CEO of JDE Peet’s, expressed excitement about the expanded collaboration with Costa Coffee, stating, “By extending the range of products offered under the L’OR Barista aluminium capsule system, we can offer coffee enthusiasts in Great Britain a wider selection of high-quality, single-serve choices at home.” 

Philippe Schaillee, CEO of Costa Coffee, emphasized their ambition to lead the coffee sector by innovating and creating new consumer experiences.  

He said, “Whether that’s in a Costa Coffee store, away-from-home through our Costa Express and Proud to Serve coffee solutions, or at-home through our fantastic range of capsules, instant coffee, whole beans, and roast and ground.” 

The partnership aligns with JDE Peet’s strategy to provide consumers with a diverse portfolio of choices and drive category value. The collaboration aims to cater to coffee enthusiasts by offering an extended brand portfolio through the L’OR Barista aluminium capsule system. 

JDE Peet’s, formed in 2019 through the merger of Jacobs Douwe Egberts (JDE) and Peet’s Coffee businesses, manages a portfolio of over 50 coffee and tea brands.  

In October 2020, the group invested US$130 million to increase its aluminium coffee capsule production by 60%.  

Additionally, in partnership with UK coffee and food-to-go chain Pret A Manger, JDE Peet’s launched a range of coffee pods in Tesco supermarkets and via online retailer Ocado. 

This collaboration with Costa Coffee comes after the resolution of a trademark lawsuit between Swiss coffee pod giant Nespresso and Peet’s Coffee.  

The lawsuit, filed in March 2022, alleged false association and confusion among consumers due to the design of Peet’s Coffee pods replicating Nespresso’s capsule design. Six months ago, Nespresso agreed to end the lawsuit. 

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE