JDE Peet’s to significantly expand its aluminium coffee capsule production capacity

The world’s largest pure-play coffee and tea group by revenue, JDE Peet’s, has announced plans to invest €110 million (about US$130 million) in its global supply network through the installation of new high-speed aluminium coffee capsule production lines.

These additional lines will be installed in stages over the coming 18 months beginning with new lines in Andrézieux, France that will become operational in the course of H1 2021.

These investments are the latest in a series of manufacturing capacity expansions designed to meet the increased consumer demand for single serve products. The investment will increase JDE Peet’s capsule production capacity by more than 60 per cent to meet the rapidly expanding consumer demand for premium single serve coffee experiences.

“The total single serve coffee category has seen tremendous growth, a trend that is expected to continue, with aluminium coffee capsules serving as a strong driver,” says Fabien Simon, CEO of JDE Peet’s.

“We were the first to bring aluminium coffee capsules into grocery stores back in 2016, driving general category growth, increasing consumer choice and creating value for our customers. This new strategic investment ensures that JDE Peet’s is well positioned within the market as this category continues to expand.”

Since 2016, JDE Peet’s has quickly gained significant market share in one of the fastest growing premium coffee segments and has successfully applied this technology throughout its brand portfolio in 47 markets. According to Euromonitor, JDE Peet’s represents about 13 per cent of the total single serve coffee category, which is currently valued at €17 billion (about US$20 billion) and is expected to grow at an annual rate of 7.8 per cent to €23 billion (about US$27 billion) by 2024, fuelled by consumers’ increasing preference for premium single serve coffee products.

Since the introduction of aluminium coffee capsules in 2016, the Andrézieux factory has become a major employer in the Auvergne-Rhône-Alpes region, growing its workforce by more than 60 per cent, or 150 jobs. The factory produces more than 400 different types of coffee and recently celebrated the production of its 10 billionth aluminium coffee capsule.

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