JAB Unlocks $12.5 Billion to Pivot Away From Its Big Coffee Bet

For years, JAB Holding Co. has been orchestrating some of the biggest consumer deals by consolidating well-known brands and taking on industry leaders.

It’s what makes the announcement this week that Keurig Dr Pepper Inc. will acquire JDE Peet’s NV — two companies that JAB has been closely involved in building — such a big moment for the Luxembourg-based holding company that manages funds for the billionaire Reimann family.

The goal of the €15.7 billion ($18.4 billion) deal is still to create a rival to global coffee leader Nestle SA. It’s just that JAB will be less ...