JDE Peet’s and Caribou Coffee announced today that they have signed a long-term global license agreement for JDE Peet’s to license the Caribou brand in its consumer packaged goods (CPG) and foodservice channels. The transaction, valued at $260 million and expected to close this quarter, also transfers Caribou Coffee’s roasting operations in Minneapolis to JDE Peet’s and its office coffee and foodservice contracts.
JDE Peet’s was formed in 2015 when Jacobs Douwe Egberts, part of Mondelēz International’s coffee division, merged with Peet’s Coffee. Caribou Coffee, based in Brooklyn Center, Minn., was founded in 1992 and now has more than 800 coffeehouses in 11 countries. Both companies are owned by JAB Holding.
The two companies have also reached a long-term strategic arrangement under which JDE Peet’s will supply coffee products for sale in Caribou’s coffeehouses. Caribou has expanded its retail outlets through company-owned development as well as a franchise program that should double domestic coffeehouses in the coming years. Through an expanded development agreement with current franchisees, Caribou also expects a similar development internationally.
Caribou will be added to JDE Peet’s existing distribution portfolio, which includes Peet’s, Stumptown, Intelligentsia, and L’Or. “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,” said Fabien Simon, CEO of JDE Peet’s, in a statement. “We wholeheartedly welcome a new team of talented employees to the JDE Peet’s family and look forward to integrating their expertise and insights into our operations.”
The transaction puts Caribou in a better position to focus on its core strength of high-quality products combined with an award-winning customer experience, said John Butcher, president and CEO of Caribou Coffee. “JDE Peet’s has the right resources, expertise, and team to continue [our] growth trajectory,” he said in a statement. “JDE Peet’s shares our commitment to responsible sourcing and high-quality standards, and we are excited to work with them to expand the reach of our storied brand as we maintain our legacy of consistency and quality.”
Over the coming months, senior leaders from JDE Peet’s and Caribou Coffee will work together to ensure a smooth transition of Caribou Coffee’s commercial coffee business and roastery assets. This transaction is not expected to lead to any material coffeehouse closures or position eliminations.
