JDE Peet's will add to its large market share in Brazil with the acquisition of the coffee and tea business of Maratá, which has a strong position in the country's northern region.
Maratá is known for its Café Maratá roast and ground, capsule, instant, and RTD coffee products as well as its Chá Maratá tea products. Maratá ranks among the top five coffee brands in Brazil, which is the world's second largest consumer of coffee after the United States.
In a press release, the Dutch multinational said that the acquisition will increase its "scale and national coverage in Brazil, a market which offers compelling prospects for both volume and value growth. As a result, the acquisition offers long-term value creation potential through attractive revenue and cost synergies."
JDE Peet's already has the second-largest share of Brazil's growing coffee market, where its distribution is focused in the nation's south. The company's brands there include Cafe Pilao, Cafe do Ponto and L'OR.
"Over the last three years, we have been focused on transforming JDE Peet’s into a faster growing, correctly invested, and more sustainable company," said Fabien Simon, CEO. "We are now ready to take the next step and continue our disciplined path of geographical expansion and diversification."
Maratá, founded 50 years ago, is owned by Brazil's JAV Group. The coffee and tea business has some 1,200 employees and operates two manufacturing plants. Terms of the all-cash deal, which will close in 2024, were not disclosed.