JDE PEET’s Outlines Its Economic Presence in the Country with its Socio-Economic Impact Report

With the report Socio-Economic Impact of JDE’s Activity in Bulgaria, prepared in September 2020 by the Institute of Market Economics, JDE PEET’s outlines its economic presence in the country.

JDE PEET’s in Bulgaria plays a pivotal role in the country’s economy, particularly in coffee manufacturing and trade. Since acquiring its facility in Kostinbrod in 2015, JDE has maintained stable production levels, processing approximately 17,000 tonnes of coffee annually between 2016 and 2019. Despite 2020’s challenges, JDE PEET’s production volume remained resilient, reflecting strategic operational management.

With investments of BGN 5.1 million since 2016, focusing on modernization initiatives, productivity increased by 13% from 2017-2019. The company’s emphasis on technology and streamlined processes boosted international competitiveness, with exports rising from 74% in 2015 to 81% in 2019.

JDE PEET’s directly created 140 jobs in 2018 and sustained 135 in 2019. The company’s competitive wages, offering machine operators 75% above industry averages and specialists 30% higher, further reflect its role as a high-wage employer within the sector.

Financially, the company contributes significantly to the Bulgarian economy through taxes, paying around BGN 2.2 million annually to the central budget in both 2018 and 2019. While these figures may seem modest in the context of the national budget, they underscore JDE PEET’s economic significance and role in sustaining public finances. In Kostinbrod, JDE PEET’s accounts for over 1% of total employment, with wages exceeding municipal averages by over 50%. The company’s procurement activities have secondary impacts on domestic demand and employment, generating BGN 9.8 million in secondary demand between 2015 and 2020. Similarly, expenditures on external services and materials exceeded BGN 3 million and BGN 1.6 million respectively.

Overall, JDE PEET’s exemplifies sustainable economic development in Bulgaria, driving growth through investments, exports, employment, and domestic demand stimulation.