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The surprising amount of money Peet’s Coffee was sold for
Peet’s Coffee and Tea, a popular coffee chain founded by Alfred Peet in Berkeley, California in 1966, has a rich history and reputation for creating the perfect cup of coffee. Over the years, the company has expanded its presence and gained popularity among coffee enthusiasts. However, in a surprising turn of events, Peet’s Coffee and Tea was sold for a staggering amount of money that took many by surprise.
The Journey of Peet’s Coffee and Tea
Alfred Peet, a Dutch immigrant and coffee enthusiast, founded Peet’s Coffee and Tea with a passion for serving the highest quality coffee. Throughout the 1970s, Peet worked closely with young roasters, sharing his knowledge and expertise to help them perfect the craft of creating exceptional coffee. The company flourished and was incorporated as Peet’s Coffee and Tea Company in 2001. It even went public on the Nasdaq until it was finally taken private in 2012 (via the Los Angeles Times).
A billion-dollar acquisition
In the summer of an eventful year, Germany’s Joh. A. Benckiser made headlines when it acquired Peet’s Coffee and Tea for an astonishing sum. Joh. A. Benckiser paid nearly $1 billion, or $977.6 million, to acquire the coffee chain. This significant transaction involved buying out the company at $73.50 per share (via the Los Angeles Times).
Despite the acquisition, Peet’s original management team and employees were allowed to remain in their positions to ensure a smooth transition. Bart Becht, Chairman of Joh. A. Benckiser, expressed his commitment to preserving Peet’s culture, core values and vision for future growth. He said, “At JAB, we are committed to owning and investing in companies with strong, high-quality brands and great people whose values we share. Peet’s is such a company, and we look forward to supporting management’s vision for future growth” (via Patch).
A surprising decision
The sale of Peet’s Coffee and Tea to Joh. A. Benckiser caught many by surprise, as the German company was best known for its ownership of lifestyle and beauty brands, including Labelux and Coty Inc. Some industry insiders had expected Peet’s Coffee to be acquired by its chief rival, Starbucks. Speculation was fueled by talk of both companies’ plans to expand their presence in grocery stores.
However, Peet’s Coffee’s board of directors unanimously approved Joh. A. Benckiser’s takeover bid. Jean-Michel Valette, chairman of Peet’s, expressed his excitement about the deal, highlighting the company’s unique qualities and the significant value it would bring to existing Peet’s shareholders (via Patch).
Expansion and Diversification
The acquisition of Peet’s Coffee and Tea marked a turning point for Joh. A. Benckiser as it expanded its portfolio of food brands. Following the acquisition of Peet’s, Joh. A. Benckiser continued its growth trajectory by acquiring Caribou Coffee in late 2012 (via USA Today). This strategic move allowed the company to further strengthen its foothold in the coffee industry.
Joh. A. Benckiser’s appetite for food brands didn’t stop there. Through its subsidiary, JAB Holding Company, the company acquired other popular food brands, including Krispy Kreme, Espresso House, Pret, and Panera Bread. These acquisitions solidified Joh. A. Benckiser’s presence and influence in the food and beverage industry.
The Legacy of Peet’s Coffee and Tea
Despite the change in ownership, Peet’s Coffee and Tea continues to thrive, maintaining its commitment to delivering exceptional coffee experiences to its loyal customers. The company’s dedication to quality and its rich heritage remain at the core of its operations.
The surprising amount for which Peet’s Coffee and Tea was sold underscores the value and potential of exceptional coffee brands. This acquisition not only secured a substantial financial reward for Peet’s shareholders, but also allowed the company to become part of a larger portfolio of renowned food brands under the Joh. A. Benckiser.
As Peet’s Coffee and Tea continues its journey under new ownership, coffee lovers can look forward to the same commitment to quality and passion for the perfect cup of coffee that has made Peet’s a beloved brand for decades.
Bottom line
The sale of Peet’s Coffee and Tea to Joh. A. Benckiser for a staggering amount of money sent shockwaves through the coffee industry. This unexpected acquisition marked a significant milestone in the history of Peet’s, a company that has become synonymous with exceptional coffee experiences.
Joh. A. Benckiser’s investment in Peet’s Coffee and Tea reflects its recognition of Peet’s as a strong, high-quality brand with a dedicated team and loyal customer base. With this acquisition, Joh. A. Benckiser expanded its portfolio of food brands and further strengthened its presence in the coffee industry.
Despite the change in ownership, Peet’s Coffee and Tea remains committed to its core values and to providing the highest quality coffee to its customers. The legacy of Alfred Peet’s passion for coffee lives on, ensuring that Peet’s will continue to be a beloved brand for coffee lovers.
The surprising amount for which Peet’s Coffee and Tea was sold is a testament to the value and potential of exceptional coffee brands. It demonstrates the importance of investing in companies with strong brands and a commitment to quality.
As Peet’s Coffee and Tea enters a new chapter under Joh. A. Benckiser’s ownership, coffee lovers can look forward to a continuation of the brand’s rich heritage and pursuit of the perfect cup of coffee. The acquisition opens up opportunities for further growth and expansion while preserving the company’s culture and values.
Finally, the sale of Peet’s Coffee and Tea for a significant amount of money demonstrates the enduring appeal and value of a brand that has consistently delivered excellence in the world of coffee. With the support and vision of Joh. A. Benckiser, Peet’s is poised for continued success and innovation in the coffee industry, while remaining true to its roots and the legacy of Alfred Peet.
FAQS
The German company Joh. A. Benckiser has acquired Peet’s Coffee for approximately $977.6 million.
When did Peet’s Coffee & Tea go private?
Peet’s Coffee and Tea went private in 2012.
Who founded Peet’s Coffee and Tea?
Peet’s Coffee and Tea was founded in 1966 by Alfred Peet, a Dutch immigrant and coffee enthusiast.
Did Peet’s Coffee and Tea retain its original management team after the acquisition?
Yes, Peet’s original management team and employees were retained after the acquisition by Joh. A. Benckiser.
What other food brands are owned by Joh. A. Benckiser own?
Joh. A. Benckiser has expanded its ownership of food brands by acquiring companies such as Caribou Coffee, Krispy Kreme, Espresso House, Pret and Panera Bread through its subsidiary JAB Holding Company.