JDE Peet’s (XAMS:JDEP, Financial) (Netherlands) is the second-largest producer of coffee products globally. We believe that coffee is among the most attractive product categories within consumer packaged goods. It benefits from both volume growth and positive revenue mix as a result of premiumization. We purchased shares of JDE Peet’s at a discount to our estimate of intrinsic value when concerns about increased green coffee prices pushed down JDE’s share price. Although the company could experience some short-term margin pressure, we believe that over the long term it will successfully grow revenue and expand margins above expectations.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund third-quarter 2021 commentary.
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