Core Viewpoint - Keurig Dr Pepper (KDP) announced the acquisition of JDE Peet's, the parent company of Peet's Coffee, for €15.7 billion (approximately ¥130.3 billion), indicating a significant consolidation in the coffee industry as competitors face restructuring and sales [1][3]. Group 1: Acquisition Details - KDP will acquire 100% of JDE Peet's shares at a price of €31.85 per share, with existing shareholders also receiving a dividend of €0.36 per share [3]. - Following the announcement, JDE Peet's stock surged, while KDP's stock fell from $35 to around $29 [3]. - KDP aims to enhance its coffee positioning and plans to split its beverage and coffee businesses into two independent publicly traded companies in the U.S. after the acquisition [6]. Group 2: Market Context - The coffee sector is experiencing significant changes, with Coca-Cola reportedly evaluating the sale of Costa Coffee and Starbucks China also attracting interest from major investors [3]. - JDE Peet's, known for its 50+ brands, has seen its stock price decline from a peak of €40 to €16, a drop of 60% since 2021 [7]. - The acquisition news led to a rebound in JDE Peet's market value, nearly returning to its initial public offering level [8]. Group 3: Industry Trends - Peet's Coffee, often referred to as the "godfather of Starbucks," has been facing challenges in the competitive coffee market, with closures of several key stores in China due to poor profitability [12][13]. - The premium coffee segment is struggling, with over 32,000 coffee shops expected to close nationwide by mid-2025, averaging 170 closures per day [13]. - In contrast, budget coffee brands like Luckin Coffee are rapidly expanding, leveraging aggressive pricing strategies to capture market share [14][15].
“星巴克的祖师爷”被卖了！