JDE Peet’s unveils brand-led strategy to accelerate profitable growth and unlock value

Core Insights - JDE Peet's has introduced its 'Reignite the Amazing' strategy aimed at sustainable value creation, focusing on brand-led initiatives and a clear roadmap for long-term performance [2][3][4] Strategic Framework - The strategy is centered around three Big Bets: Peet's, L'OR, and ten local iconic brands led by Jacobs, chosen for their potential to meet consumer needs and drive growth [3][4] - The company aims to simplify its portfolio and organizational model to boost operational efficiency and productivity [6][7] Financial Targets - JDE Peet's has set ambitious medium-term financial targets, including: - 2026-2027: Gross Profit growth of 1-3%, Adjusted EBIT growth of 3-4%, and Free Cash Flow of approximately EUR 2 billion - 2028-2029: Gross Profit growth of 3-4%, Adjusted EBIT growth of 4-5%, and at least EUR 2 billion in Free Cash Flow - 2030-2032+: Gross Profit growth of 4-7%, Adjusted EBIT growth of 5-8%, and at least EUR 3.5 billion in Free Cash Flow [5] Cost Savings and Reinvestment - The company targets EUR 500 million in net productivity savings, with over 50% expected to be achieved by the end of 2027, and plans to reinvest half of these savings into high-potential growth initiatives [6][7] Capital Allocation Strategy - JDE Peet's capital allocation framework includes four priorities aimed at driving sustainable value creation, focusing on organic growth, strengthening the balance sheet, enhancing shareholder returns, and refocusing M&A activities [8][11]