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San Francisco-based Peet’s Coffee & Tea purchased Stumptown Coffee Roasters as it wants to bring its high-end beverage business to a whole new level. Stumptown is one such business with an extremely dedicated loyal fan base. The company made the announcement on Tuesday.
We don’t know yet whether Stumptown products would be sold in Peet’s locations or the other way around, or whether customers would notice any change after the merger. Stumptown’s head Joth Ricci said that the two companies share common values although they were run as separate businesses.
The companies didn’t provide any details on their agreement.
High-end coffee business has an ever increasing market especially in North America. And the market is growing fast. Starbucks Reserve, which provides its selected clientele with exotic beverages, made a debut last year in Seattle. Also, Chobani yogurt’s maker heavily invested into La Colombe Coffee Roasters recently.
Peet’s parent company is a group head-quartered in Luxemburg with high stakes in coffee businesses including Caribou Coffee Company and Jacobs Douwe Egberts.
Stumptown, however, had ties with Peet’s long before the company was even born. For instance, Stumptown’s founder Duane Sorenson was a Peet’s employee at a Portland location. There, he met Peet’s roast master, with whom he remained friends.
Stumptown, also drew inspiration from Peet’s line of cold-brewed coffee. This type of coffee requires coffee grounds to soak in water overnight and be filtered the next day to decrease acidity level.
Stumptown improved the process and injected nitrogen bubbles into the coffee, or sold it canned or in stubby retro bottles. In 2011, Stumptown launched the first line of cold-brewed ready-to-drink coffee.
So, Peet’s announced that its former rival’s innovations would be beneficial to its business, while Stumptown said that it would also benefit from its now-owner’s logistics and other amenities.
Matt Lounsbury, Stumptown’s VP for retail department, believes that the recent announcement that Peet’s Coffee & Tea purchased Stumptown Coffee Roasters is a refreshing news.
He believes that the merger may help the company further grow. The company was already in expansion in the last four years. It managed to implement a ‘hub and spoke’ strategy and gained support from an investment group called TSG Consumer Partners. With help from this group it opened stores near its roasting facilities.
Lounsbury explained that the growth was challenging and required new strategies that sometimes were beyond the company’s capacities.
“Peet’s will give us more ability to resolve those issues,”
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