Pret A Manger’s owner is branching out from sandwiches and into the insurance industry.
JAB Holdings, the conglomerate that also owns Krispy Kreme and fashion group Coty, revealed it is planning to push into the insurance industry by building a global platform.
It also hopes to develop an asset management business.
Anant Bhalla, the veteran insurance boss, has been hired as a chief investment officer and senior executive to help with the new venture.
JAB’s shift comes as it struggles with its investments in consumer brands, with many of its businesses tussling with higher costs and subdued sales.
Pret for example, saw its debt soar to £744 million in 2022 before higher interest rates and consumer pushback from changes to its subscription service amplified its issues.
A month ago, the coffee chain brought back its founder to help clear up the current furore.
Sinclair Beecham, who founded the business in 1986, said his return was to “reaffirm Pret’s mission” after a rising tide of comments that the coffee and sandwich chain is a rip-off.
However, the future of Pret A Manager as a JAB company remains uncertain.
Last November, the German private equity firm replaced its long-standing boss Olivier Goudet with Joachim Creus.
Goudet had been instrumental in its dive into customer-facing businesses, having overseen the investment of £40 billion into such consumer brands.
Now, some believe the overhaul will result in the sale of some of its well-known brands.