Pret owner plans major expansion outside of coffee and sandwich sectors

After a difficult period for the food and beverage division, Pret A Manger’s owner plans to increase its push into insurance .

JAB Holding has announced plans to create a global platform for insurance and establish a business in asset management. The company also owns Krispy Kreme donuts and the beauty group Coty.

Anant Bhalla is a senior partner and chief investments officer who has been in the US insurance industry for many years.

The decision represents a major shift in strategy for German private equity, which has been unable to make money on consumer brands since the pandemic.

Pret is struggling with rising interest rates, and customers are reacting to changes made to their subscription coffee service.

Konrad Meyer, the new chairman of the coffee chain, took office last month with a mission to reduce debt.

Sinclair Beecham is the businessman that co-founded Pret in 1986 with Julian Metcalfe. Larry Billett, who was previously chairman, has also returned to Pret as a non executive director.

JAB replaced Olivier Goudet in November. He had been the chief executive of JAB for many years and was responsible for overseeing its $50bn (£40bn), move into consumer brand. Joachim Creus replaced Mr Goudet who was a former finance director at Mars.

JAB, the company that manages Germany’s Reimann billionaire family’s wealth, may sell some of its consumer brands as part of this overhaul.

The company has completed the stock market listing of some of its brands including JDE Peet, Krispy Kreme and coffee group JDE Peet.

JAB is also involved in insurance. It owns 20 pet insurance brands, which are expected to generate revenues of more than $3bn this year. The “humanisation” and the growth of the pet market has been a major opportunity, according to bosses.

Mr Bhalla’s responsibilities will include overseeing JAB’s global business in insurance, and an asset management division that invests in other sectors than consumer goods and services.

Peter Harf said, “This is the second phase of JAB’s evolution to a more diverse investment firm.”

With this milestone, we’re ideally placed to deliver sustainable and long-term shareholder values for generations to follow.”

Mr Bhalla was the president and CEO of American Equity Investment Life Holding Company. He oversaw its $4.3bn purchase by Brookfield Reinsurance.

Before this, he had held senior positions at companies such as Brighthouse Financial and MetLife.

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