Holding Company JAB Is Betting On A Caffeine-Based Corporate Strategy

Interviews with executives of JAB, a privately-held German holding company that owns a variety of seemingly unrelated companies, including recently purchased Dr Pepper Snapple Group, reveal that the company intends to build a “caffeine-fueled global powerhouse.” JAB began decades ago selling pool chemicals, but is now acquiring companies – i.e., Peet’s, Panera Bread, Krispy Kreme, Dr Pepper and Stumptown – because it believes America’s beverage industry is about to undergo a huge reorganization. Hot drinks will no longer just compete with hot drinks; cold drinks will no longer just compete with cold drinks.  As Starbucks Chairman Howard Schultz put it: “JAB wants to become the largest coffee company in the world.” Its likely next target? Industry leader Nestlé SA.