Yahoo Finance Pret owner plots major push outside coffee and sandwich sector
The owner of Pret A Manger is planning a greater push into insurance after a challenging period for its food and drink division.
JAB Holding, which also owns Krispy Kreme doughnuts and beauty group Coty, has outlined plans to build a global insurance platform and establish an asset management business.
It has hired Anant Bhalla, a veteran US insurance executive, as senior partner and chief investment officer to oversee the move.
The decision marks a significant shift in strategy for the German private equity group, which has seen its bets on consumer brands falter since the pandemic.
Pret, which saw its debts jump to £744m in 2022, is grappling with higher interest rates and is facing a backlash from customers over changes to its subscription coffee offer.
Konrad Meyer last month took over as the coffee chain’s new chairman with a goal to cut debt.
Sinclair Beecham, the businessman who co-founded Pret with Julian Metcalfe in 1986, has returned as an adviser, while former chairman Larry Billett has also returned as a non-executive director.
In November, JAB unexpectedly replaced its long-serving chief executive Olivier Goudet, who oversaw the group’s $50bn (£40bn) move into consumer brands. Mr Goudet, a former finance chief at Mars, was replaced by Joachim Creus.
The overhaul will spark speculation that JAB, which manages the wealth of Germany’s billionaire Reimann family, could look to sell off some of its well-known consumer businesses.
It has already completed stock market listings for some of its brands, including coffee group JDE Peet and Krispy Kreme.
JAB has also already ventured into insurance, owning 20 pet insurance brands that are expected to generate more than $3bn of revenues this year. Bosses said there was a huge opportunity for growth in the market thanks to the “humanisation” of pets.
Mr Bhalla will be tasked with overseeing the wider development of JAB’s global insurance business, as well as an asset management arm aimed at investing in sectors beyond consumer goods and services.
Peter Harf, founder and chairman of JAB, said: “This is the next phase of JAB’s evolution into a more diversified investment firm.
“With this milestone, we are ideally positioned to deliver sustainable, long-term shareholder value for generations to come.”
Mr Bhalla served as president and chief executive of American Equity Investment Life Holding Company, overseeing its $4.3bn sale to Brookfield Reinsurance.
Prior to this, he held senior roles at companies including Brighthouse Financial and MetLife.
