Peet's Coffee

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Peet's Coffee
Subsidiary
Industry Coffee
Founded 1966
Berkeley, California
Founder Alfred Peet (1920–2007)
Headquarters Emeryville, California
Key people

Dave Burwick, CEO
Doug Welsh, Roastmaster
Jim Reynolds, Roastmaster Emeritus

Jerry Baldwin, Board Member
Products Coffee beans, coffee beverages, teas, and food
Revenue $800M (FY 2016)
Number of employees
5,000
Parent JAB Holding Company
(2012–present)
Subsidiaries Stumptown Coffee Roasters
Intelligentsia Coffee & Tea
Mighty Leaf Tea
Website peets.com

Peet's Coffee is a San Francisco Bay Area based specialty coffee roaster and retailer. Founded in 1966 by Alfred Peet in Berkeley, California, Peet's introduced the U.S. to its darker roasted Arabica coffee in blends including French Roast and grades appropriate for espresso drinks.[1][2][3] Peet's offers freshly roasted beans, brewed coffee and espresso beverages, as well as bottled cold brew.[4] In 2007, Peet's opened the first LEED Gold Certified roastery in the United States.[5] Peet’s coffee is sold in over 14,000 grocery stores across the United States.[6]

History[edit]

Peet's original store in North Berkeley, California

Alfred Peet grew up in the Netherlands, where his father owned and operated a coffee wholesale and coffee bean grindery. Peet trained with his father to roast and grind coffee. In 1938, at the age of 18, he moved to London to work for a coffee and tea company. He also spent time in New Zealand and Indonesia before moving to San Francisco in 1955 where he worked for a coffee and tea importer.[7]

In 1966, Peet opened the first "Peet's Coffee, Tea & Spices" in Berkeley, California on Vine Street near the University of California, Berkeley campus. It originally sold coffee beans, not cups of coffee. His coffee beans were hand-roasted in small batches. The company grew to four locations and became known as "Peet's Coffee and Tea."[8] Peet wanted to bring better coffee to the American market and became known as "the godfather of gourmet coffee in the U.S."[9] The original location at Vine and Walnut remains open.[10]

Peet sold his business to Sal Bonavita in 1979, but remained working with the company as a coffee buyer and consultant until 1983.[11] In 1984, Jerry Baldwin, a Starbucks founder, bought Peet's four locations from Sal Bonavita. In 1987, Baldwin and his Starbucks co-investors sold Starbucks to focus on Peet's.[10] Howard Schultz, Starbucks' new owner, entered into a four-year non-compete agreement in the Bay Area.[citation needed]

In 2001, the company was incorporated as Peet's Coffee and Tea Company and had its initial public offering. The company was listed on the Nasdaq under the symbol PEET. 3.3 million shares were sold at $8 a share. Shares climbed to $9.38 and the company raised $26.4 million.[12][13]

Peet's opened a roasting plant in Alameda in 2007. This new location replaced the former operations in Emeryville, California, and is the nation's first LEED Gold Certified roastery.[5][14]

In 2012, Peet's was taken private when it was acquired by Joh. A Benckiser, a German investment group, for $977.6 million, or $73.50 per share. At that time, the acquisition was one of the largest prices paid for a Berkeley-founded company.[15] JAB Holding (Joh. A Benckiser) also owns minority stakes in the consumer products companies Reckitt Benckiser, Coty, Inc. and control of luxury brands Bally, Belstaff and Jimmy Choo.[16] JAB Holding later acquired Caribou Coffee.[17]

In August 2014, Peet's acquired Mighty Leaf Tea, a specialty tea brand based in the Bay Area, in partnership with Next World Group.[18] It was announced in October 2015 that Stumptown Coffee Roasters would become a wholly owned subsidiary of Peet's.[19] Later that same month, Peet's announced that it was acquiring a majority stake in Chicago-based Intelligentsia Coffee & Tea.[20][21][22]

In December 2016, Peet's announced that it was building a second roaster in Suffolk, Virginia. The new 175,000sqft facility will cost $58 million and was set to open in 2018.[23] At that time, the Alameda roaster was producing approximately 1 million pounds of coffee each week.[6]

Peet's opened a location in Shanghai, China, in October 2017.[24]

Locations[edit]

By 2010, Peet's operated 193 retail locations; most are in California, with further locations in Washington, Oregon, Colorado, Illinois and Massachusetts.[25]

Peet's opened its first coffeebar location in Chattanooga, Tennessee in December 2016. At that time, Peet's had coffeebars in Illinois, Massachusetts, Oregon and Virginia.[26]

By December 2016, Peet's coffee was sold in 14,000 grocery stores, universities, and wholesalers across the United States. They had over a dozen coffeebar locations in Chicago and Boston as well as 23 in the Washington D.C. area at that time.[27]

In January 2017, Peet's opened a coffeebar in Georgetown. It was the first location to feature a "slow bar".[28][29]

In October 2017, Peet's opened a roastery and cafe in Shanghai, China.[30]

Licensed partnerships[edit]

Peet's has outlets at many transit centers, including several airports such as William P. Hobby Airport, George Bush Intercontinental Airport, Reno-Tahoe International Airport, John F. Kennedy International Airport, Philadelphia International Airport, Sacramento International Airport, Phoenix Sky Harbor International Airport, and all three major airports in the San Francisco Bay Area.[31]

In 2003, the first full-service Peet's coffeebar on a university campus was opened within the Clark Center building at Stanford University.[32] Peet's coffee is also currently served at all Stanford Dining locations. In 2005, UC Berkeley opened its own Peet's franchise on campus in Dwinelle Hall and as a campus restaurant near its existing dining area. Similarly in 2009, coffeebars opened at the UW–Madison's Memorial Union, Villanova University, and at UC San Diego.[33]

Peet's donated $250,000 to the University of California, Davis to launch Coffee Center, a research hub dedicated to a multidisciplinary study of coffee, in September 2016. UC Davis is the first university in the world to dedicate a rigorous academic focus to post-harvest coffee. The program worked with the Specialty Coffee Association of America to get prospective graduates access to grants and fellowships.[34] In April 2017, Peet's signed an agreement with UC Berkeley's University Partnership Program to help fund student programs including student travel grants, scholarships and paid internship opportunities.[35][36]

Products[edit]

In September 2015, Peet's announced that it was adding all-day breakfast options to its menu. The change would be implemented in the Chicago market, and eventually, would be added at all locations.[37]

Peet's Coffee started formulating the blend in 2014 and first added it to its coffeebar menu in summer 2015. In July 2016, Peet's released a complimentary line of bottled cold brew coffee to 400 locations in the San Francisco area including Peet's coffeebars and grocery stores. Peet's coldbrew was initially offered in three flavors: Baridi Black, Coffee au Lait, and Dark Chocolate.[38] Almond Milk was added to the line of bottled cold brew in May 2017.[39]

In December 2016, Peet’s added a Slow Bar to its newest D.C. coffeebar, featuring French press, pour-over and siphon brewing methods.[40]

Sustainability[edit]

Peet's focuses on direct trade and personal relationships with the farmers that supply its coffee and uses coffee that is certified USDA Organic, Fair Trade and Rainforest Alliance where applicable. Peet's works to support the communities and natural environment around the farms and trains farmers in agronomy and business skills. In 2003, Peet's began working with Las Hermanas, a group of 200 women farmers in Nicaragua.[9]

Peet's developed a People & Planet line of coffee that highlights a heritage of working collaboratively with farming communities. The line includes nine coffees such as Guatemala San Sebastian which is sourced from Fallas farm in Antigua Valley. Peet's works with international nonprofit TechnoServe. Through that partnership, Peet's produces its Uzuri African Blend for the People and Planet line.[9]

Influence[edit]

When the three founders of Starbucks were looking to start their company, they contacted Peet, who "became like a father mentor" to them. He allowed the three young men to copy the layout of his store and shared his suppliers.[41][42][43]

Peet's has a devoted following, sometimes known as "Peetniks", a portmanteau of Peets and beatniks.[44]

Peet's was one of the first coffee bean and brewed coffee retailers to offer specialty grade coffee, and to roast the beans longer, producing a liquor that is darker, more bitter, with less of the sour taste of the coffees offered in the US at the time. They are viewed as one of the founding businesses in the gourmet coffee trade.[citation needed]

Two British men who worked at Peet's in the early 1990s later established Union Coffee Roasters in the UK.[45]

See also[edit]

References[edit]

  1. ^ William M. Pride; Robert J. Hughes. Foundations of Business. 
  2. ^ Tina Gant (March 2009). International Directory of Company Histories, Volume 100. pp. 333–334. ISBN 9781558626348. 
  3. ^ Ian Newton. The Coffee Culture. 
  4. ^ McLellan, Michael. "Peet's Coffee & Tea. LLC". Hoovers. Retrieved March 6, 2017. 
  5. ^ a b Jones, Carolyn (May 29, 2007). "Peet's moves roasting plant to double output of coffee" San Francisco Chronicle, p. B-2.
  6. ^ a b John Kell (December 9, 2016). "Why Peet's Coffee Is Spending $58 Million on Fresher Coffee for the East Coast". Fortune. Retrieved September 3, 2017. 
  7. ^ "Alfred H. Peet [1920-2007]". New Netherland Institute. 
  8. ^ "5 Business Lessons From the 50-Year-Old Company That Made Coffee Cool". Fortune. 
  9. ^ a b c "Peets's Wants Customers to Know That Coffee Can Change Lives". TriplePudit. 
  10. ^ a b Knobel, Lance (July 23, 2012). "Peet's: Founded in Berkeley, acquired in Germany". Berkeleyside. 
  11. ^ Maxwell, Jill Hecht. "Alfred Peet: My Biggest Mistake". Inc. 
  12. ^ Vrana, Debora (January 25, 2001). "Peet's Coffee, First IPO of Year, Is Priced at $8, Low End of Range". Los Angeles Times. 
  13. ^ "Peet's Coffee IPO slowly percolates". San Francisco Business Times. January 25, 2001. 
  14. ^ "Campus, Peet's 10-year-partnership will boost student initiatives" (PDF). Berkeley University of California. April 11, 2017. 
  15. ^ Hsu, Tiffany (July 23, 2012). "Peet's Coffee & Tea sold for nearly $1 billion, but not to Starbucks". Los Angeles Times. 
  16. ^ Joh. A. Benckiser to Buy Peet’s Coffee & Tea for $974 Million
  17. ^ "Caribou Coffee closing Ohio stores?". Retrieved 7 April 2013. 
  18. ^ "Peet's Acquires Mighty Leaf Tea, Opens and Closes Midwest Stores". Daily Coffee News. 
  19. ^ "Peet's Coffee Is Buying Stumptown Coffee Roasters". Willamette Week. 
  20. ^ Galarza, Daniela (October 30, 2015). "Peet's Coffee & Tea Buys Intelligentsia Coffee". Eater. Retrieved August 24, 2016. 
  21. ^ "Peet's Coffee Is Buying Intelligentsia. Here's Why Coffee Lovers Shouldn't Freak Out". Slate. 
  22. ^ "Peet's Coffee & Tea buys majority stake in Intelligentsia Coffee". Fortune. 
  23. ^ "Bay Area's Peet's Coffee heads east for expansion". East Bay Times. 
  24. ^ "Peet's Opens Flagship Roastery Cafe in Shanghai, China". Daily Coffee News by Roast Magazine. 2017-11-14. Retrieved 2017-11-16. 
  25. ^ "Peet's Coupon". Eat Drink Deals. October 1, 2014. 
  26. ^ Chevalier, Gabrielle (December 21, 2016). "First Peet's Coffee in the South comes to downtown Chattanooga". Times Free Press. 
  27. ^ Duggan, Tara (December 9, 2016). "Peet's Coffee to expand with huge Virginia roaster". SF Gate. 
  28. ^ Hong, Payla (January 19, 2017). "Peet's Coffee Opens First Shop in Georgetown". The Hoya. 
  29. ^ Hatic, Dana (December 21, 2016). "Peet's Coffee Introduces 'Slow Bar' at New D.C. Store". Eater. 
  30. ^ "Peet's Opens Flagship Roastery Cafe in Shanghai, China". Daily Coffee News by Roast Magazine. 2017-11-14. Retrieved 2017-11-17. 
  31. ^ Francisco, San (March 31, 2008). "Peet's names BART stations getting coffee shops". 
  32. ^ "Peet's Coffee & Tea, Inc. Announces New Licensing and Supply Agreement with Stanford University's Residential & Dining Enterprises"., Business Wire, September 22, 2003
  33. ^ "Peet's Coffee". The Bay Area Press. Retrieved December 21, 2014. [dead link]
  34. ^ Pereira, Alyssa. "With grant from Peet's, UC Davis will launch research center for coffee". SF Gate. 
  35. ^ "Campus signs $8 million contract with Peet's Coffee & Tea". The Daily Californian. April 12, 2017. 
  36. ^ Sciacca, Annie (April 12, 2017). "UC Berkeley, Peet's Coffee team up to boost student programs". The Mercury News. 
  37. ^ "Peet's Coffee enters all-day breakfast competition". Chicago Tribune. 
  38. ^ "Now, Peet's Coffee is Jumping on the Cold Brew Craze". Fortune. 
  39. ^ "Peet's Launches Bottled Almond Milk Cold Brew". VegNews. 
  40. ^ "Peet's Coffee Introduces 'Slow Bar' at New D.C. Store". Eater. 
  41. ^ Jessica Wohl (September 2, 2014). "Peet's Coffee taking on Starbucks in Chicago push". Chicago Tribune. 
  42. ^ http://www.slate.com/articles/business/when_big_businesses_were_small/2013/10/starbucks_business_strategy_how_ceo_howard_schultz_conquered_the_world.html
  43. ^ "The First Starbucks, Witness - BBC World Service". BBC. Retrieved 2017-09-03. 
  44. ^ Eric A. Taub (June 4, 2005). "Rival Moving Beyond Roots Entwined With Starbucks". New York Times. Retrieved 2011-03-18. 
  45. ^ Sheryl Garratt (8 September 2002). "Wake up and smell the money. Cappuccino, frappucino, skinny latte, .." The Observer. 

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