It must be a low point in the life of anyone involved in the coffee trade to be shunned by Starbucks!
But that is just what happened to Peets Coffee & Tea who are being purchased by Germany’s Benckiser for $1b
Peets has form!
They were founded in 1966
They trained the Starbucks founders in 1971
They were their first supplier
And they were owned by Starbucks briefly – purchased in 1984
Peet himself left in 1983 …
And subsequent to all these ‘comings and goings’ post 1987 Peets found life in the gourmet sector a tad challenging!
Hence, why there was little real surprise, that Starbucks did not make a counter bid, when the German luxury conglomerate who owns Jimmy Choo decided to make the purchase…
Peets has a lesser brand equity that Starbucks…
Has 200 sites which Starbucks may not choose having just rationalised real estate portfolios…
And Peets is not complementary like the recent Tazo Tea and La Boulange Bakery acquisitions
The real question is what child will result from this unusual marriage… what aspirations do the German’s have for brand and the business…?
With experience in clothing and fragrances Peets is an unusual bed fellow…..perhaps a quick ‘bang for the buck’ or something of a longer term repositioning exercise – who knows?
Guru thinks a little more research is required on this one…..so hold tight dear readers and enjoy the suspense as we dig a little further … but rest easy Peets isn’t coming anytime soon to a street corner near you…no more Stateside invasions please! Just perfetto espresso the traditional way PLEASE!
Guru ( Andy Grelak) writes for Aromo Coffee – They are coffee experts focussed on providing convenient and tasty ways for the caffeine addict to take their medicine. Aromo supplies excellent ESE Coffee pods and superlative Senseo pods, both of which offer the espresso and filter connoisseur a no mess, no fuss, super fresh and environmentally conscious method to make stunning coffee… the guys at Aromo also have a range of Dualit branded capsules which make a brilliant and economic alternative to nespresso capsules