Coffee News Recap, 29 Aug: Keurig Dr Pepper seals $18bn deal for JDE Peet’s, Coca-Cola considers sale of Costa Coffee & other stories

Every Friday, Perfect Daily Grind rounds up the top coffee industry news from the week.

Editor’s note

Keurig Dr Pepper has agreed to an $18 billion merger with JDE Peet’s, creating a new powerhouse in the global coffee sector. The deal will result in the formation of Global Coffee Co., responsible for $16 billion in worldwide sales, alongside Beverage Co., which focuses on $11 billion in US operations. Together, they expect to unlock around $400 million in annual efficiencies, setting up the group as a direct challenger to Nestlé’s dominance in packaged coffee. The move underscores the accelerating race for scale, as major players seek to consolidate their portfolios and refine their distribution networks.

Meanwhile, Coca-Cola is weighing the future of Costa Coffee. The company has engaged Lazard to explore strategic options, with private equity firms already sounding out initial bids. The company expects to receive indicative offers in early autumn. Coca-Cola acquired Costa in 2018 for just over $5 billion, enhancing its presence in the coffee market across around 50 countries. Any sale would mark a significant shift in strategy, raising questions about Coca-Cola’s long-term ambitions in the hot beverages market.

Together, the two developments mark a pivotal moment for the branded coffee industry. While Keurig Dr Pepper and JDE Peet’s aim to build scale and challenge category leaders, Coca-Cola may be preparing to step back. The outcome of both stories will reshape competition at the top end of the global coffee business, with direct implications for supply chains, retail strategies, and consumer choice.

Industry news

Mon, 25 Aug – Breville bets on China’s coffee boom. The Australian company targets the Chinese market with expanded distribution, premium espresso machines, and marketing tie-ins to capture urban demand. At the same time, the strategy must navigate intense local competition, evolving consumer tastes, and the challenge of scaling premium appliances. (Sydney, Australia)

Tue, 26 Aug – Rising global demand strains Japan’s matcha supply. The Western-driven matcha craze is fueling shortages in Japan, as high demand for lower-grade powders pressures producers. It raises concerns among tea masters about a decline in quality and the loss of tradition. (Tokyo, Japan)

Tue, 26 Aug – Strauss Group posts strong Q2 and H1 2025 results. The group’s sales rose by approximately 11.5% year-over-year in Q2 to $925 million, with operating profit surging 60.8% to $73 million. Três Corações, a Strauss Brazilian Joint Venture, drove performance, more than doubling operating profit alongside a 32.7% increase in sales on a 50% share basis, cementing its role in lifting overall profitability. (Petah Tikva, Israel)

Tue, 26 Aug – Starbucks co-founder Gordon Bowker dies at 82. Gordon Bowker, who co-founded Starbucks in 1971 and later launched Redhook Brewery, has passed away at 82. He also co-owned Peet’s, helped launch Seattle Weekly, and created the iconic Rainier Beer ads, shaping Seattle’s coffee, beer, and media culture. (Seattle, Washington, US)

Wed, 27 Aug – Melitta Group announces retirement of long-standing communications head. After nearly 25 years, Martin Linnemann will retire in September. He will pass the roles of external and internal corporate communications to Jena Buschmann, who joined the group six years ago and has been part of Melitta Professional’s communications team since 2023. (Minden, Germany)

Wed, 27 Aug – Löfbergs appoints Kieran Youngman as chief commercial officer. Youngman joins in September to lead commercial growth across Business Area West, covering the UK and Denmark. He brings more than 20 years in FMCG with senior roles at Danone, Procter & Gamble, and The Livekindly Collective, supporting Löfbergs’ strategy for sustainable international expansion. (Karlstad, Sweden)

Wed, 27 Aug – J. M. Smucker flags tariff-driven cost pressures. J. M. Smucker’s CEO said tariffs on Brazilian green coffee have boosted input costs after a 50% levy. The company missed fiscal first-quarter profit forecasts as higher green-bean costs squeezed margins; the company signalled pricing actions in the coming months to offset elevated input costs. (Orrville, Ohio, US)

Thu, 28 Aug – Starbucks doubles down on coffeehouse strategy. New CEO Brian Niccol is reversing the mobile-first shift by ending pickup-only outlets, planning to close or convert about 90 locations by 2026. Stores will regain condiment bars, seating, and ceramic ware, while mobile ordering will continue to serve as a supporting channel. (Seattle, Washington, US)

Thu, 28 Aug – ICP annual report spotlights youth engagement. Higher 2024 coffee prices raised hopes, yet many smallholders faced low productivity, rising costs, climate risks, and youth migration. ICP reached 24,891 households in Brazil, Honduras, Indonesia, Tanzania, and Uganda with training, enterprise support, and climate-smart trials. (Hamburg, Germany)

A coffee professional cupping a range of coffees.

New launch

Mon, 25 Aug – Breville launches the Oracle espresso machine. The new flagship blends dual-boiler precision with automation and manual control through a 5.7-inch touchscreen. Key features include Auto Dial-In grind tuning, Auto MilQ microfoam settings, Wi-Fi connectivity, and triple-heating for simultaneous extraction and steaming. (Los Angeles, US)

Mon, 25 Aug – Chimera debuts as the first plastic-free water filter and coffee maker. Proper By Design has introduced Chimera, a combination of a reusable ceramic activated charcoal filter and a glass carafe, which purifies water and brews coffee while offering a zero-plastic-waste brewing experience. (London, UK)

Tue, 26 Aug – Nestlé kickstarts espresso concentrate production in Malaysia. The new line will produce Nescafé Espresso Concentrate for Asian markets and export it to Singapore, Oceania, and the MENA region, aiming to capture the rising demand for cold coffee and strengthen Malaysia as a halal manufacturing hub. (Shah Alam, Malaysia)

Tue, 26 Aug – China’s Lucky Cup opens its first overseas store in Malaysia. Opening day drew long queues and nearly 2,000 cups sold. The outlet offers a larger dine-in space and menu items blending Chinese classics and local drinks, with prices from MYR 1.5 to 8. Lucky Cup will add four franchise stores in Malaysia, supported by Mixue’s regional supply chain. (Puchong, Malaysia)

Wed, 27 Aug – Dalla Corte launches Steam Maestro automatic wand. Available on the ICON machine, the automated wand offers three presets for cappuccino, flat white, and hot milk, adjustable temperature and foam density, compatibility with plant-based milks, a guided end-of-service cleaning programme, and positioning for high-volume sites. (Geneva, Switzerland)

Thu, 28 Aug – Monin launches Pure no-added-sugar range. Four flavours (mint, red fruits, green apple, and peach apricot) arrive in 700ml bottles across India priced at INR 955. The product targets chefs, bartenders, and baristas and is backed by local R&D, studio programmes, and a Telangana factory opening planned for 2026. (Hyderabad, India)

Thu, 27 Aug – Nespresso & The Weeknd debut new Vertuo Pop+ machines. The collaboration with Samra Origins unveils two limited-edition Vertuo Pop+ machines: Yellow (available on Amazon from 6 September) and Green (from 23 September via Nespresso boutiques and nespresso.ca) alongside the Togetherness Blend, tumbler, and travel mug, all inspired by shared rituals and creative connections. (Montreal, Canada)

Research

Mon, 25 Aug – Caffeine linked to reduced antibiotic potency in lab study. A laboratory study found that caffeine can reduce antibiotic uptake in Escherichia coli by altering transport proteins, potentially lowering the drug’s potency. Researchers say the results are preliminary and do not prove that coffee affects antibiotic effectiveness. (Tübingen, Germany)

Wed, 27 Aug – Carbon credits in coffee farming misprice planting over protection. A global meta-analysis in Communications Earth & Environment finds carbon-credit systems award planted saplings while undervaluing protection of mature shade trees, which store far more carbon and support greater biodiversity; authors urge payments to favour conservation and diverse agroforestry. (Washington, District of Columbia, US)

Coffee crops alongside mature shade trees.

Events & competitions

Tue, 26 Aug – Expo Café Uruguay set for 6–7 September. The South American event’s fourth edition will be held at the LATU Events Centre in Montevideo, featuring an exhibition, workshops, tastings, lectures, competition, including national AeroPress and latte art championships, and industry networking for national and international professionals. (Montevideo, Uruguay)

Wed, 27 Aug – SCAJ 2025 conference set for 16–19 September at Tokyo Big Sight. The 20th edition will feature 650 booths and 450 companies, with an expected 75,000 visitors. The programme will include competitions, seminars, cuppings, and equipment showcases across four days. (Tokyo, Japan)

Thu, 28 Aug – Ljubljana Coffee Festival returns for its 2025 edition. The event features two days of tastings, competitions, and workshops at the City Museum of Ljubljana, including a Roasters Village, barista battles, a latte art throwdown, and a panel on specialty coffee and haute cuisine with Carolyne Lane, Liz Escobar, Patrik Rolf, and Morten Munchow. (Ljubljana, Slovenia)

Fri, 29 Aug – Porto Coffee Week 2025 programme announced. The fourth edition runs from 29 September to 5 October, featuring workshops, talks, championships, and a Coffee Market at Oporto Customs House. Organisers Tasteology have listed stages, cup tasters, latte art throwdowns, and a roster that includes João Toti, Emilee Bryant, and Rui Príncipe. (Porto, Portugal)

Here are a few coffee news stories from previous weeks that you might find interesting. Take a look:

Fri, 22 Aug – Lagardère launches So! Coffee at Madinah airport. A 320 sq ft outlet at Prince Mohammad bin Abdulaziz International Airport joins Lagardère’s concession, extending its travel retail network to 44 stores in Saudi Arabia after doubling units over the past year. (Madinah, Saudi Arabia)

Fri, 22 Aug – US tariffs blamed for spike in arabica prices. Brazil’s exporters’ group Cecafé said US tariffs and a smaller-than-expected crop pushed New York arabica futures up by over 30% in August, making shipments to the US unviable after a 50% tariff was imposed. As a result, buyers shifted to other origins, which lifted premiums and drove speculative activity. (Brasília, Brazil)