After the closure of Maxwell coffee’s Guangzhou factory a few years ago, the latest news of “change” came from Jacobs Douwe egberts (hereinafter referred to as JDE), who is in charge of the brand’s business in China. Xiaoshidai learned exclusively that JDE Changzhou factory was shut down a few days ago. In this regard, Frank Wang, general manager of Greater China of JDE, confirmed the above information in reply to the inquiry of snack agent, but also revealed the latest important production capacity arrangement in China – the establishment of a Chinese manufacturing center.
Almost at the same time, Peet’s coffee, a coffee chain that belongs to JDE Peet’s, is expanding in China. Previously, “expand China’s retail coffee shop business” was the company’s global growth strategy. JDE Peet’s is “the world’s largest pure coffee company”, and its two major shareholders are jab holding group and Yizi international. These changes may partly indicate that more new ideas are emerging from the company, which is “chasing Nestle hard” in the global coffee market, but “low-key and mysterious” in China. Now, let’s take a look at its latest plan.
Let’s take a look at the plant adjustments related to Maxwell. According to a JDE China notification obtained by the company, the company announced to local employees on September 24 that it plans to close Changzhou plant early next year. “It was a difficult decision, but I firmly believe it is an important step on our long-term growth path in Asia.” In the briefing, Lara brans, President of JDE Asia Pacific, said: “I would like to personally thank the Changzhou team for serving regional customers and consumers over the past 20 years. Our current priority is to support all employees affected by the closure and maintain the continuity of our business during this transitional period. “
It is worth noting that this factory is responsible for the production of products, including the well-known coffee brand “Maxwell” in the Chinese market. According to a Maxwell instant package produced in March this year, its client is Zhenyin Trading (Shanghai) Co., Ltd. (Note: JDE’s operating entity in China), while the consignor is Changzhou Super Food Co., Ltd. Industrial and commercial data show that the latter shareholders are two JDE companies.
The snack agent browsed the flagship store of Maxwell tmall and noticed that at present, Maxwell’s products are still sold normally, and the basic series are basically from this Changzhou factory, including original instant, milk flavor instant, etc. The other series in the store are mostly imported products.
In the early years, when Maxwell’s Guangzhou plant was closed, JDE once said that the supply of Maxwell coffee in the Greater China market was transferred to the factory in Bangkok, Thailand. The same is true for this one. According to the JDE China Circular, most of the production at the Changzhou plant will be transferred to the Wuxi plant, and some will be transferred to other factories in Asia.
“In order to enhance the scale and focus of JDE’s regional production and supply chain network, the company carried out a detailed evaluation and decided to use Wuxi factory as the manufacturing center.” It said it would “focus on Wuxi to establish a Chinese manufacturing center” and pointed out that the change will further improve the capacity utilization of Wuxi factory, one of JDE’s largest factories, and become a platform to meet the growing coffee demand in China and the Asia Pacific region. On China’s market strategy, the company said: “JDE China is an important part of JDE’s regional growth goals, and will continue to be so in the future. Building a world-class regional supply network is an important step in maximizing growth opportunities in one of the fastest growing coffee markets in the world. “
Although the production capacity layout has been adjusted again after several years, the gap between China’s packaged coffee business and Nestle’s is still huge, but the European coffee giant still seems to be committed to China’s coffee market.
In this year’s semi annual report, the Chinese market for home packaged coffee products achieved strong growth during the epidemic period. In addition, as introduced by the snack agent, JDE Peet’s opened an overseas flagship store in tmall last year to “expand ammunition” in China by introducing several brands and categories.
At that time, executives of the company pointed out that consumers could purchase JDE’s global products through “their favorite shopping platform”, whether it was freeze-dried coffee, fresh coffee beans, traditional roasted coffee and ground coffee, or new convenient coffee capsules.
At present, JDE Peet’s has a relatively complete coffee business in China, with a layout in FMCG and catering business. However, on both sides, JDE Peet’s can not avoid the “double whammy” of old brands and emerging brands. For example, in the FMCG market, Nestle has expanded fiercely after forming a team with Starbucks. After the introduction of the “Starbucks home coffee” co operated by both sides last year to the mainland of China, the series launched its first instant coffee this year. In addition, Nestle coffee FMCG business also has two other “veteran”: Nescafe and Nespresso. In addition, there are, of course, a growing number of “new players.”. For example, it is also the main instant three and a half meals, and even “Coca Cola + Costa”. Today, the snack agent noticed that Coca Cola tmall flagship store has launched new Costa instant coffee products with different flavors recently.
In fact, JDE Peet’s, with a revenue of nearly 7 billion euro last year, is definitely a “heavyweight” player in the world, and has established a coffee empire with nearly 70 brands through a large-scale “buy buy buy”. But most of them are regional brands. In the Chinese market, the famous JDE Peet’s are old street market and Maxwell.
一方面，JDE Peet’s目前在中国销售的咖啡品牌并不算多，这意味着资源相当充足的它还能借助很多新品牌开拓市场。但另一方面，如果继续引进新品牌，如何实现差异化，避免自家品牌竞食是JDE Peet’s需要思考的重要命题。
而在中国市场，JDE Peet’s的皮爷咖啡更为人熟知的一面应该还是被称为“星巴克祖师爷”的名号，因为传闻星巴克三位创始人都是皮爷咖啡创始人Alfred Peet的徒弟。
Will JDE Peet’s new move in China achieve its goal? Snacks generation will continue to pay attention.
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