JDE Peet’s injects €110 million at French facility to increase aluminium coffee capsules production

In a briskly booming market, the world's largest pure-play coffee and Tea Company by revenue, JDE Peet’s is injecting €110 million at its French production site, in Andrézieux Bouthéon, in order to raise 60% of aluminium coffee capsules production. The company while keeping its dynamic activity the same and in order to meet new consumer expectations, its L'Or brand is launching a range of organic aluminium coffee capsules and a series of ephemeral creations, made from rare arabica.

In 2020, the consumption of hot drinks in France has grown at a considerable rate. Coffee, which is still the second most-consumed drink in the nation after water, saw its market jump by 7%, driven by the Single Serve 2 category (capsules and pods) which experienced a value increase of 11.2%. At the heart of this category, capsules compatible with Nespresso3 coffee machines saw an increase in turnover of 22.9% and are the main contributors to total coffee growth. The JDE group is growing faster than the market and is increasing its value sales by 25% in 2020. In 2021, JDE France continues to consolidate its leadership position, gaining 3.3 points in market value share.

Marc Dujardin, Marketing Director JDE, spotlighted: “In 2016, we announced our ambition to triple the market for compatible capsules in supermarkets and medium-sized stores to reach 600 million euros in 2022, against 200 million at the time. This objective will be reached in 2021, thanks to our dynamic of innovation and our strike force in stores, but also our industrial capacity to follow the growing evolution of French consumer demand.”

In order to support the evolution of the demand for capsules, the JDE Peet's group announces that its strategic investment of €110 million will be entirely allocated to its French facility in Andrézieux-Bouthéon, in the Loire. This will entitle the group's production capacity for aluminium coffee capsules to be increased by 60%.

Chrystel Stouvenel, Director of the JDE Andrézieux plant, said: “It is a real recognition of the excellence of our French industrial expertise and of our ability to rapidly deploy new production lines. It is also a strong commitment of the JDE Peet's group for the local employment pool since we are going to increase our workforce by 25% to support this major investment.”

The year 2020 also saw the confirmation of important trends on the part of consumers, with an ever-increasing interest in organic, fair trade or certified products on the coffee market. Organic compatible capsules have grown by 39% in 2020 and have made it possible to recruit 200,000 households. To meet these new expectations, the L'OR brand, leader in compatible capsules in supermarkets and medium-sized stores, is launching two premium innovations of aluminium capsules, verified by Rainforest Alliance. Its first range of organic coffee capsules and a series of creations ephemeral, made from rare arabicas.