In August, it was announced that Keurig Dr. Pepper is in the process of purchasing JDE Peet’s for an astonishing $18 billion. The transaction is still pending and KDP recently made an offer for all of JDE Peeta’s common stock as part of the acquisition. Peet’s previously announced the sudden closure of multiple cafes in the San Francisco area.
As reported SF Gatethe Berkeley-based coffee shop and roastery is scheduled to close an unknown number of cafes across the Bay Area by the end of January. Some reports include the number of stores is two dozen one sec others say up to 30. No information was given as to which locations would be closed. According to Peet’s website, there are over 100 locations throughout the San Francisco area.
According to a brand spokesman, the closures “reflect broader efforts to align our business with long-term growth priorities and current market conditions.” This correlates with moves made by other corporate-owned entities in the coffee space, particularly the move away from bricks and mortar. In December, Nestle began considering selling Blue Bottle as a way to exit the retail business (Luckin Coffee, of all companies, has been linked to the purchase). Meanwhile, Coca-Cola tried unsuccessfully to sell Costa Coffee.
The question remains whether and/or how the job cuts will impact other specialty coffee institutions. JDE Peet’s owns Stumptown and Intelligentsia, although both brands operate independently and operate in the higher-end specialty coffee market. However, if KDP’s modern owners decide to move further away from retail, could it also come down to these two brands, particularly Stumptown, given their larger presence outside of brick-and-mortar coffee shops, including icy beer retail and wholesale.
