Mondelez International (MDLZ) shares took a dip on Monday, following news of JAB Holding Company’s significant acquisition of JDE Peet’s, the global leader in pure-play coffee and tea. JAB acquired a substantial 86 million shares of JDE Peet’s, further increasing the free float of the company’s shares by distributing shares to its limited partners. This move marks the final distribution of JDE Peet’s shares to JAB Consumer Partners investors, leaving JAB with a controlling 68% stake in the company.
JAB, known for its investments in insurance and consumer-focused industries with long-term growth potential, has expressed strong confidence in JDE Peet’s future. Joachim Creus, JAB Managing Partner, Vice Chairman, and CEO, stated, “JAB has strong conviction in the resilience of the global coffee sector and the long-term value creation prospects of JDE Peet’s. We are fully committed to remaining an anchor shareholder of the world’s leading pure-play coffee and tea company.”
This strategic acquisition has resulted in a 32% free float of JDE Peet’s shares, with JAB distributing a total of 43 million shares, representing 9% of the company’s total issued and outstanding share capital.
While Mondelez is navigating the acquisition of its majority stake in JDE Peet’s, the company is also making strides in innovative technology. Last week, Mondelez, in partnership with SKUx, successfully implemented the first real-world public adoption of distributed ledger technology (DLT) for tracking the supply chain of consumer-packaged goods and facilitating digital payments.
Investors can gain exposure to Mondelez through various exchange-traded funds (ETFs), such as the iShares U.S. Consumer Staples ETF (IYK) and the First Trust Nasdaq Food & Beverage ETF (FTXG).
Mondelez is scheduled to report its third-quarter 2024 results on October 29, 2024, offering further insights into the company’s performance. With JAB’s significant investment and Mondelez’s commitment to technological advancements, it will be interesting to see how these developments impact the company’s future trajectory.