Food and beverage manufacturer J.M. Smucker Co. has forged a new partnership with coffee and tea firm JDE Peet’s to advance its Smucker Away From Home liquid coffee business.
“We are excited by the promise this partnership hold for our Away From Home liquid coffee business,” John Brase, the chief operating officer of J.M. Smucker, said in a recent company release. “The agreement will allow us to more aggressively pursue liquid coffee innovation opportunities that will enhance current customer solutions and drive category growth.”
JDE Peet’s will assist J.M. Smucker with product development, production, and fostering innovations in food service equipment.
“We are excited to partner with J.M. Smucker Co. to offer liquid coffee products to their North American customers. Our proprietary liquid coffee system efficiently delivers large quantities of premium coffee in a hygienic manner, making it the perfect solution for hospitals, universities, hotels, conference centers, and many other out-of-home coffee customers,” said Sataya Menard, global president, Out-of-Home, for JDE Peet’, in a statement.
Terms of the partnership were not revealed. J.M. Smucker said its work with JDE Peet’s will not impact its activities in retail coffee.
In tandem with the formation of the partnership, the company also intends to shutter and sell its production plant in Suffolk, VA next spring.
A recent forecast by ResearchandMarkets posits that the global out of home coffee market will grow at a CAGR of 4.95% between 2020 and 2024, reaching a value of $29.55 billion by the end of the period. This February, food ingredients and agriculture firm Olam International announced Friday that it plans to list its ingredients business in 2022, which includes coffee.