- JDE Peet’s has signed a licensing deal to manufacture, market and sell Caribou consumer and foodservice coffee products, the companies said in a statement. The $260 million transaction, which excludes Caribou coffeehouses, is expected to close in the first quarter of this year.
- As part of the transaction, JDE Peet’s will acquire Caribou’s roasting operations in Minneapolis, Minnesota, and its office coffee and foodservice contracts. Caribou is part of Panera Brands, which also owns Einstein Bros Bagels and Panera Bread.
- The deal provides JDE Peet’s with a platform to expand its premium coffee portfolio in North America, while Caribou can focus attention on its retail coffeehouse business with 800 locations across 11 countries. Caribou’s coffee is sold at Walmart, Target and Kroger, among other retailers.
As consumers gravitate to premium coffee, this transaction provides JDE Peet’s with another well-known brand to add to its portfolio. The deal allows each company to focus on what they do best, while simultaneously providing a platform to bring Caribou’s branded coffee products to new consumers. In addition to its namesake brew, JDE Peet’s distributes other brands such as Stumptown and Intelligentsia.
“Caribou is an iconic brand with outstanding facilities and we will complement its strong brand equity with JDE Peet’s’ distribution and innovation capabilities to strengthen our presence and serve more coffee lovers in the largest coffee market in the world,” Fabien Simon, CEO of JDE Peet’s, said in a statement.
The deal will allow Caribou to focus on its aggressive growth plans in the U.S. In 2021, it opened franchising in the U.S. Last year, it signed deals with franchisees for 300 units. The chain has a goal of doubling its American footprint by 2030 and to become the third-largest coffee chain the country.
Coffee consumption is at a two-decade high, according to data released in 2022 by the National Coffee Association. Americans consume nearly half a billion cups of the beverage each day, making it the most popular drink ahead of water, tea and juice. It’s also getting more popular with younger adults. NCA reported that 51% of young adults between 18 and 24 drink coffee, representing an increase of 11% since July 2021.