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JAB Holding Company

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JAB Holding Company S.à r.l.
Company typePrivate (S.à r.l.)
IndustryConglomerate
Founded1828; 196 years ago (1828)
FoundersLudwig Reimann
Johann Benckiser
Headquarters
Luxembourg
,
Luxembourg[1][2]
Key people
Peter Harf
(Chairman)
Olivier Goudet
(CEO)
OwnersReimann family
Number of employees
7 (2016)[2]
ParentAgnaten SE[2]
SubsidiariesBally
Coty
Peet's Coffee
Caribou Coffee
Jacobs Douwe Egberts
Einstein Bros. Bagels
Espresso House
Keurig Dr Pepper (67%)
Krispy Kreme
Panera Bread
Bruegger's
Pret A Manger
Compassion-First Pet Hospitals
National Veterinary Associates
Websitejabholco.com

JAB Holding Company[3] ("JAB" or Joh. A. Benckiser) is a German conglomerate, headquartered in Luxembourg, that includes investments in companies operating in the areas of consumer goods, forestry, coffee, luxury fashion, animal health, and fast food, among others.[2][4][5]

Overview

As of 2015, JAB’s portfolio included a minority stake in the consumer products company Reckitt Benckiser,[6] and majority stakes in Coty, Peet’s Coffee & Tea, Caribou Coffee Company, Jacobs Douwe Egberts (JDE), Einstein Noah Restaurant Group, and Jimmy Choo.[7][8][9][10][11] As of that date, JAB also owned Bally, Belstaff, Zagliani, Espresso House, and Baresso Coffee.[12][13][14]

In May 2014, D.E Master Blenders 1753 announced to acquire a majority stake in Mondelez's coffee business (outside of France) to form Jacobs Douwe Egberts, it would combine brands Jacobs, Carte Noire, Gevalia, Kenco, Tassimo and Millicano from Mondelez International and Douwe Egberts, L’OR, Pilao and Senseo from D.E Master Blenders.[15]

In August 2014, under the Peet's Coffee & Tea brand, JAB acquired Mighty Leaf Tea, a specialty tea retailer based in the San Francisco Bay Area.[16] In October 2015, Peet's Coffee & Tea acquired Portland, Oregon's Stumptown Coffee in a deal whose terms were not disclosed,[17] and in the same month acquired a majority stake in Chicago-based Intelligentsia Coffee & Tea.[18]

In March 2016, JAB and other investors acquired Keurig Green Mountain for $13.9 billion.[19][20] In May 2016, JAB-controlled JAB Beech reached an agreement to acquire US doughnut shop operator Krispy Kreme for $1.35 billion.[21] In April 2017, JAB reached an agreement to buy U.S.-based Panera Bread, a fast casual bakery-café chain, for $7.5 billion.[22] Also in April, JAB was reported to be stepping back from investment in luxury goods, with reported plans to sell its stakes in the designer shoe and clothing brands Jimmy Choo, Bally, and Belstaff.[11] In August 2017, JAB announced the acquisition of Bruegger's Bagels.[23]

On 29 January 2018, Keurig Green Mountain announced it was acquiring Dr Pepper Snapple Group, with JAB owning 87% of the combined companies.[24] As of February 2018, JAB retained ownership of a minority stake in Bally after sale of its majority stake to the Chinese conglomerate Shandong Ruyi.[25] JAB's beverage empire was described in 2018 as having been built on "buy now, pay later" (extended terms of trade) principles; some coffee roasters owned by JAB are reported to require up to 300 days of financing from their suppliers.[26]

In February 2019 the company spent $1.2 billion to acquire Compassion-First Pet Hospitals then purchased National Veterinary Associates four months later. The combined revenue of Compassion-First and National Veterinary Associates is expected to be $3 billion in 2020, placing it among the three largest players in the industry barely 12 months after the firm’s first takeover. [27]

Ownership

Owned by Germany’s Reimann family,[28] 90% of JAB belongs to four of the nine adopted children of the late Albert Reimann Jr. (1898–1984).[29] They trace their wealth to chemist Ludwig Reimann, who, in 1828, joined with Johann Adam Benckiser (founder of the namesake chemical company). Reimann married one of Benckiser's daughters and ended up owning the business. Great-grandson Albert Reimann Jr. took over after his father died in 1952 and added consumer goods.[30]

Initially, each of the nine children had inherited 11.1% ownership in JAB upon Albert's death in 1984. In the following years, five of the heirs sold their stakes to the other four: Matthias Reimann-Andersen, Renate Reimann-Haas, Stefan Reimann-Andersen and Wolfgang Reimann. As of January 2015, each of the four owns about $3.8 billion in JAB shares.[31]

The primary shareholder of JAB, as listed in its 2016 Consolidated Financial Statements, is Austrian-domiciled company Agnaten SE.[2] Agnaten is listed, by PrivCo, as a subsidiary of Joh. A. Benckiser GmbH,[32] the investment vehicle of the Reimann family.[33]

Founder's support of Hitler and Nazism

In March 2019, a German newspaper revealed that Albert Reimann Sr., and his son Albert Reimann Jr., were enthusiastic supporters of Adolf Hitler and the Nazi party well before they took power, and profited from forced labor, both in their industrial chemicals company in southern Germany and in their own home.[34][35][36] The revelations sparked ethical questions about consumer support for companies that owe their success in part to the historical use of forced labor.[37][38]

Two months later, several of the Reimanns revealed to The New York Times that their mother, Emilie Landecker, Albert Jr.'s mistress, baptized as a Catholic like her mother, was the daughter of Alfred Landecker, a Jewish man deported to the Izbica Ghetto in 1942. His ultimate fate is unknown although many Jews sent to Izbica were held there pending transport to the Belzec and Sobibor extermination camps. They have renamed the family foundation after him and doubled its budget to €25 million (US$28.2 million), to fund projects that honour the victims of the Holocaust and Nazism.[39]

References

  1. ^ Arash Massoudi (September 11, 2012). "Coty postpones $700m IPO amid slowdown". Financial Times.
  2. ^ a b c d e "Consolidated Financial Statements for the financial year ended 31 December 2016" (PDF). 31 December 2016: 1–58. Retrieved 21 December 2017. {{cite journal}}: Cite journal requires |journal= (help)
  3. ^ William Alden (September 29, 2014). "Bagel Maker Einstein Noah Sold to German Firm for $374 Million". The New York Times.
  4. ^ Chelsey Dulaney (September 29, 2014). "Einstein Noah Agrees to $374 Million Buyout". The Wall Street Journal.
  5. ^ Jonathan Braude (October 17, 2014). "Jimmy Choo bravely steps onto London market after IPO". The Deal. Archived from the original on December 19, 2014. Retrieved December 19, 2014.
  6. ^ Joan E. Solsman (July 23, 2012). "Peet's Coffee to Be Taken Private for $1 Billion". The Wall Street Journal.
  7. ^ Macdonald, Alastair; Geller, Martinne; Landini, Francesca (5 May 2015). "Mondelez, D.E Master Blenders coffee venture gets EU nod". Reuters.
  8. ^ Mary Ellen Podmolik (September 29, 2014). "JAB Holdings to buy bagel seller Einstein Bros.' parent for $374 million". Los Angeles Times.
  9. ^ Mary Ellen Podmolik (September 29, 2014). "Einstein bagels parent to be acquired by majority owner of Peet's, Caribou Coffee". Chicago Tribune.
  10. ^ Julia Kollewe and Jill Treanor (October 17, 2014). "Jimmy Choo shares edge higher on stock market debut". The Guardian.
  11. ^ a b Chaudhuri, Saabira (24 April 2017). "Jimmy Choo Up for Sale as JAB Holding Steps Back From Luxury". Wall Street Journal. Retrieved 16 June 2019. Jimmy Choo floated its shares in London in October 2014 in an initial public offering that represented a partial divestment by JAB, which bought the brand in 2011. JAB is still the controlling shareholder in Jimmy Choo, with a roughly 68% stake.
  12. ^ Jana Simmons (October 17, 2014). "Jimmy Choo Lists in London, With Shares at Bottom of Range". The Wall Street Journal.
  13. ^ "JAB Furthers Coffee-Shop Expansion With Deal for Nordic Leader". Bloomberg Business. 2 June 2015.
  14. ^ Kongskov, Jesper; Friis, Lasse (22 June 2015). "Baresso sold to German coffee family". Berlingske Business.
  15. ^ "GLOBAL NEWS – Mondelez International & D.E Master Blenders 1753 to form world's leading pure-play coffee company". Comunicaffe International. 8 May 2014. Retrieved 29 May 2020.
  16. ^ "Peet's Coffee & Tea Acquires Mighty Leaf Tea to Accelerate Its Growth in the Premium Tea Category". Business Wire. Peet's. August 1, 2014. Archived from the original on 7 October 2014. Retrieved 23 September 2014.
  17. ^ Strom, Stephanie (6 October 2015). "Peet's Buys Stumptown Coffee Roasters". The New York Times. Retrieved 16 June 2019.
  18. ^ "Peet's Coffee & Tea Buys Intelligentsia Coffee".
  19. ^ "JAB completes acquisition of Keurig Green Mountain". Vermont Business Magazine. March 3, 2016.
  20. ^ "JAB Holding Company-Led Investor Group Completes Acquisition of Keurig Green Mountain, Inc.". Business Wire. March 3, 2016.
  21. ^ "Krispy Kreme to be Acquired by JAB Beech for $21 Per Share in Cash". Business Wire. Krispy Kreme. May 9, 2016. Retrieved 9 May 2016.
  22. ^ "Krispy Kreme owner pays $7.5bn for Panera Bread chain". BBC News. 5 April 2017. Retrieved 5 April 2017.
  23. ^ Dan DeBaun, "Caribou Coffee buys Bruegger's Bagels", 'Minneapolis / St. Paul Business Journal', August 24, 2017
  24. ^ "K-Cup maker Keurig bets big on beverages, buying Dr Pepper Snapple". CNBC. 29 January 2018. Retrieved 17 March 2018.
  25. ^ "UPDATE 1-China's Ruyi yet to secure Bally deal financing as coronavirus weighs - sources".
  26. ^ Buy Now, Pay Later Helps JAB Billionaires Build Beverage Empire, Bloomberg Businessweek, 30 January 2018
  27. ^ Builders of a $20 Billion Coffee Empire Have Their Eyes on Pets, Bloomberg Quint, 04 June 2020
  28. ^ Fontanella-Khan, James; Whipp, Lindsay; Massoudi, Arash (5 April 2017). "Reimann family's JAB agrees Panera Bread takeover". Financial Times. Retrieved 2017-04-05.
  29. ^ "Reimann-Holding-Chairman Bart Becht: "Kaffee bietet eine einmalige Chance"" (in German). Retrieved 2018-03-13.
  30. ^ "Germany's intensely private and immensely wealthy Reimann family". FT. 11 March 2016. Retrieved 17 March 2018.
  31. ^ "Matthias Reimann-Andersen". Forbes. Retrieved 30 January 2015.
  32. ^ "Agnaten Holding SE". privco.com. PrivCo. Retrieved 21 December 2017.[permanent dead link‍]
  33. ^ "Joh. A. Benckiser GmbH". privco.com. PrivCo. Retrieved 21 December 2017.[permanent dead link‍]
  34. ^ Bennhold, Katrin (2019-03-25). "Germany's Second-Richest Family Discovers a Dark Nazi Past". The New York Times. ISSN 0362-4331. Retrieved 2021-06-26.
  35. ^ "33 Milliarden Euro reich: Die Nazi-Vergangenheit der Calgon-Familie". bild.de (in German). 2019-03-26. Retrieved 2021-06-26.
  36. ^ "Family Who Owns Krispy Kreme, Panera, Peet's Coffee Acknowledges Nazi Past". NBC Bay Area. Retrieved 2021-06-26.
  37. ^ First, Devra (June 14, 2019). "I found out Nazi money is behind my favorite coffee. Should I keep drinking it? - The Boston Globe". BostonGlobe.com. Retrieved 2021-06-26.
  38. ^ Appelbaum, Binyamin (2019-03-28). "Opinion | Bagels and War Crimes". The New York Times. ISSN 0362-4331. Retrieved 2021-06-26.
  39. ^ Bennhold, Katrinn (June 14, 2019). "Nazis Killed Her Father. Then She Fell in Love With One". The New York Times. Retrieved June 16, 2019.
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