JAV Group has a strong presence in the Northern part of Brazil through its Maratá brands. The company has been consistently among the five largest in coffee sales volumes according to a annual ranking by ABIC, the Brazilian coffee industry association.
JDE Peet's is the second largest coffee company in Brazil, holding popular brands such as Cafe Pilao, Cafe do Ponto and L'OR, only behind the 3 Corações group, a joint venture between Israel's Strauss and local conglomerate Sao Miguel.
JDE Peet's said the deal was an all-cash one, but it did not disclose the amount to be paid. It said the acquisition is subject to regulatory approvals and should be closed in 2024.
Fabien Simon, CEO of JDE Peet's, said in a statement that the deal is complementary to the company's presence in Brazil, which has been stronger in the Southern part of the country.
Brazil is the world's largest producer of coffee and the second largest consumer, behind the United States.
There has been stronger growth in the premium segment of the coffee industry in Brazil in recent years, as coffee drinkers move to single-serve products and seek higher-quality coffee offerings.
(Reporting by Marcelo Teixeira in New York; editing by Jonathan Oatis)
