(Reuters) -Coffee and tea company JDE Peet's unveiled a new strategy on Tuesday that aims to simplify its portfolio and organizational model under its new CEO.

The group, which sells coffee, tea and hot chocolate under more than 50 brands globally, targets 500 million euros ($589 million) of net productivity savings, with more than a half of them to be achieved by end of 2027.

"Our 'Reignite the Amazing' strategy is brand-led and is centred around three Big Bets: Peet's, L'OR and a strategically selected set of ten iconic brands, led by Jacobs," CEO Rafael Oliveira, who took the role in late 2024, said in a statement ahead of the company's investor day.

JDE Peet's said the "big bets" were selected because of their ability to meet both current and emerging consumer needs, driving long-term growth and market relevance.

Jefferies analysts wrote ahead of the strategy announcement that the company under its former management team between 2022 and 2024 had made costly strategic decisions, exposing it to poor capital discipline, most notably on U.S. machine expansion which lacked scale and strategic fit.

The group has also been affected by a rise in coffee bean prices that has bit into its margins. It said in February it was not expecting the green coffee prices to come down in the near future.

It set financial targets for 2030-2032 and beyond, expecting its gross profit to grow between 4% and 7% and adjusted operating profit to rise by 5% to 8%, with a cumulative free cash flow of at least 3.5 billion euros during the period.

($1 = 0.8490 euros)