Peet’s is getting hitched

Peet’s Coffee is merging with European coffee company Jacobs Douwe Egberts. It’s a combination of siblings, as both companies are owned by German holding company JAB, whose other investments include pieces of Krispy Kreme, Pret A Manger, and Keurig Dr. Pepper. JDE’s portfolio of brands are found mainly in Europe with some outlets in Asia, aimed toward mass-market rather than highest quality, so it’s a good marriage in that sense. The move prepares the combined unit for a potential IPO, possibly next year.

I wouldn’t expect to see operational changes in individual Peet’s outlets, but the combination and the potential IPO could give them a war chest for expansion with an eye toward eating into Starbucks’ dominant market share. Both also slug it out on grocery shelves for bags of beans, and this may mean we see more Peet’s branded pre-made drinks in retail coolers.

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