Simplified— Peet’s Coffee: the forgotten pioneer of American coffee

Peet's original store in Berkeley, California, USA

In 1966, Alfred Peet, a Dutch immigrant with a vision, opened a small store in Berkeley, California, that sparked a shift in American coffee culture. Peet's Coffee introduced consumers to dark-roasted, high-quality Arabica coffee, a challenge to the common preference for weak and uninspiring brews. From the Great Depression through the 1960s, high-quality coffee from Latin America was hard to find due to import restrictions and the effects of World War II. This led to the rise of instant coffee brands like Nescafé, making coffee a cheaply produced, mass-market product. By the 1960s, most Americans were drinking coffee made from freeze-dried beans in cans, with little focus on flavor or quality.

Alfred Peet's career began in the Netherlands, where he apprenticed under his father in the family's coffee business. His quest for mastery led him to London with Twining’s and later to modern day Indonesia (then under Dutch colonial rule) and New Zealand. Peet settled in California in 1955, quickly becoming disappointed with America’s subpar coffee culture. This dissatisfaction culminated in the opening of "Peet's Coffee, Tea & Spices" on April 1, 1966, in Berkeley, where he meticulously roasted beans in small batches, setting a new standard for American coffee aficionados (Peet's Coffee, n.d.).

Milestones in Peet's Corporate Evolution

1971: The expansion to a second store in Menlo Park marked Peet's initial growth beyond its original location, signaling a burgeoning appreciation for specialty coffee in the region.

1979: Peet sold his enterprise to Sal Bonavita but remained integral as a coffee buyer and consultant until 1983, ensuring the preservation of his exacting standards during the transition.

1984: Jerry Baldwin, co-founder of Starbucks, acquired Peet's Coffee & Tea, intertwining the destinies of two influential coffee purveyors and underscoring Peet's foundational role in the specialty coffee sector.

1994: The opening of a 60,000-square-foot roasting facility in Emeryville enhanced Peet's production capabilities, enabling the company to meet increasing demand while maintaining quality.

1995: Peet's ventured beyond the California’s Bay Area, opening its first store outside the region and commencing supply to Au Bon Pain bakery cafés, thereby broadening its footprint and influence.

2001: The company's initial public offering on the Nasdaq under the symbol PEET raised $26.4 million, reflecting investor confidence in the brand's growth trajectory.

2007: The opening of a LEED Gold certified roasting plant in Alameda, Calif. demonstrated Peet's commitment to sustainability and innovation, replacing the Emeryville operations with a state-of-the-art facility.

2012: JAB Holding, a German investment group, acquired Peet's Coffee & Tea for $974 million, transitioning the company back to private ownership and providing resources for further expansion.

2014-2015: Strategic acquisitions of Mighty Leaf Tea, Stumptown Coffee Roasters, and a majority stake in Intelligentsia Coffee & Tea diversified Peet's portfolio, solidifying its position in the specialty beverage market.

2020: Peet's raised $2.5 billion in an initial public offering on Euronext Amsterdam, marking one of Europe's largest IPOs that year and underscoring the brand's global aspirations (JDE Peet's, n.d.).

Legacy

Alfred Peet's unwavering dedication to quality and artisanal roasting techniques has left an indelible mark on the coffee industry. His mentorship influenced notable figures like Jerry Baldwin, one of Starbucks’ original founders, highlighting Peet's pivotal role in shaping specialty coffee culture in the United States. Today, Peet's Coffee is recognized for its commitment to high-quality beans and innovative roasting methods, maintaining a significant presence in the global coffee market.

References:

Company-Histories.com. (n.d.). Peet's Coffee & Tea, Inc. https://www.company-histories.com/Peets-Coffee-Tea-Inc-Company-History.html

JDE Peet's. (n.d.). Our story. https://www.jdepeets.com/about-us/our-story/

Peet's Coffee. (2020). Meet Alfred Peet. YouTube. https://www.youtube.com/watch?v=BdWN1b6OPg

Saito-Chung, D. (2016). Alfred Peet brewed a better coffee in America. Investor's Business Daily. https://www.investors.com/news/management/leaders-and-success/alfred-peet-was-a-pioneer-in-the-coffee-industry/

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