Heineken and Coca-Cola Navigate Leadership Changes in Coffee Sector
Heineken has made a significant move by appointing Rafael Oliveira as its new CEO, scheduled to take over on October 1, 2026. This marks a departure from the company's tradition of internal promotions, as Oliveira comes from outside the organization, currently serving as the CEO of JDE Peet’s, owned by Keurig Dr Pepper (KDP). His appointment is seen in the context of addressing declining demand in the beer sector. KDP has recently launched its Global Coffee Co., which is expected to manage $16 billion in global sales.
Meanwhile, Coca-Cola is facing challenges with its Costa Coffee brand. The company has engaged restructuring advisors, AlixPartners and Alvarez & Marsal, following a failed attempt to sell the chain. The sale collapsed in January when bids did not meet Costa’s £2 billion asking price, which is significantly less than the £3.9 billion Coca-Cola paid in 2018. This restructuring move highlights the ongoing efforts of Coca-Cola to streamline its operations and possibly reposition Costa Coffee in the market.
In addition to these corporate shifts, the UK government has announced plans to implement its own deforestation regulation, mirroring the EU's legislation that was enacted in 2023. This regulation has already caused notable disruptions in the coffee industry, and the UK’s version is expected to have similar impacts, particularly affecting supply chains.
Brazilian coffee producers are also making headlines by holding back a record coffee crop, which is affecting global supplies. So far, only 20% of arabica and 14% of robusta beans have been sold for the 2026/27 season, compared to historical averages. This reluctance to sell is partly due to a 40% drop in prices since the record highs of 2025, offering little incentive for farmers to sell their produce quickly.
These developments reflect a period of significant change and adaptation for major coffee companies and producers, as they navigate through challenges related to leadership, market positioning, and regulatory changes.
