JDE Peet’s Raises Coffee Prices by 64% Despite Global Bean Price Decline
JDE Peet’s, the parent company of Douwe Egberts, has announced a new coffee price increase ranging from 10% to 25%, triggering sharp criticism from retailers and specialty coffee brands. According to De Telegraaf, the updated pricing sets the cost of a kilogram of coffee beans at €21.55, bringing the half-kilo price to €10.69.
This marks the third price hike since January 2024, resulting in a cumulative increase of 64% over the past 18 months. In response, major retailers including Jumbo’s procurement organization Everest, online supermarket Picnic, and Jumbo’s French and German partners have reportedly suspended orders from JDE Peet’s.
The decision comes at a time when global coffee bean prices are actually falling. Commodity analysts point to favorable conditions in Brazil, where fears of frost damage during the winter did not materialize. “We are heading for a record harvest this year,” said Alexander Sterk, CEO of commodity intelligence firm Vesper. “There is more reason to expect a price decline than an increase.” Analysts noted that global market prices have dropped over 20% since January.
Gianluigi Ferrari, CEO of Everest, criticized the move, accusing JDE Peet’s of prioritizing shareholder profits over market fairness. “They talk about ‘price discipline,’ but it’s clear they just want to increase their profits,” he told De Telegraaf.
Earlier this year, JDE Peet’s reported a 13.4% rise in profits for 2024, announced a $250 million share buyback program, and raised its dividend payout. The company stated that customers have shown “little price sensitivity” and claimed it has “successfully managed” the impact of rising prices. A spokesperson emphasized JDE Peet’s long-term pricing strategy: “Thanks to our sourcing approach, we can offer more stable prices over time.”
However, smaller coffee brands are voicing concerns over the opaque nature of coffee pricing. Ferry Poppegaai, founder of Wonderbeans and a former JDE Peet’s employee, said the current system is disconnected from the realities of production. “Most transactions are between intermediaries who don’t touch the beans — it’s completely non-transparent,” he said. Poppegaai added that millions of coffee farmers live in poverty. “Many don’t even own boots to walk through their farms. Their children miss school because they’re helping the family secure food.”
Bart Dingjan, founder of De Koffiejongens, echoed those concerns and questioned JDE Peet’s rationale. His company secures long-term contracts directly with farmers to ensure price stability. “I don’t understand why JDE Peet’s is raising prices,” he said. When asked about the company’s claims of supporting fair pay and sustainability, Dingjan replied: “It feels like greenwashing. They showcase one good project to create the illusion that everything is ethical.”
He also pointed out that specialty coffee prices are now only slightly higher than JDE Peet’s retail prices, but with significantly more revenue going back to the farmers. “We don’t have George Clooney in our ads, and I don’t get a €60 million bonus,” he added.
