European tea and coffee giant JDE Peet's announced on Monday that its interim chief executive officer and chairman, Luc Vandevelde, has stepped down after less than five months in the role.

The company, which owns popular brands such as L'Or, Kenco, and Douwe Egberts, cited "unforeseen matters" requiring Vandevelde's immediate attention as the reason for his abrupt departure.

Peter Harf, managing partner and chair of controlling shareholder JAB Holdings, will assume the role of chairman, while chief financial officer Scott Gray will serve as interim chief executive officer until a permanent replacement is found. The company stated that the search for a permanent chief executive, which began in April, is "nearing completion".

The sudden leadership change comes at a crucial time for JDE Peet's, which has been grappling with inflation and rising input costs. The Dutch-listed company, valued at €10.1 billion, has struggled to maintain profitability despite increasing consumer prices. However, recent results suggest an improvement in the company's fortunes, with shares surging earlier this month after raised guidance for the year ahead.

Despite the unexpected departure, JDE Peet's management said that it remains "fully committed" to the improved outlook, citing "robust, broad-based performance across top-line, profitability and cash flow" in a challenging environment.

Market reaction to the news was muted, with shares dipping 1.5 per cent in morning trading on Monday. Analysts at ING noted that the reasons behind Vandevelde's resignation appeared "somewhat inconsistent" with his new role as a senior adviser at JAB Holdings, focusing on packaged consumer goods.

The coffee industry has faced significant challenges recently, with London robusta futures, the global benchmark for coffee, surging above $4,500 per tonne on Monday, nearly doubling over the past 12 months.

As JDE Peet's navigates this period of transition, the company remains optimistic about its long-term prospects. "JAB has a strong conviction in the long-term growth prospects of JDE Peet's, and we are fully committed to our investment in the world's leading pure-play coffee and tea company," said Harf.

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