Blog

Steven Donaldson
Principal

Peets brand sells to a German conglomerate— is that all bad?

Peet’s Coffee and Tea just announced they are going private with a sale to German conglomerate Benckiser . But is this all bad? Is it a local company being swallowed up by a giant again? Not really—it’s an opportunity for stable growth and staying true to their values — what? How can that be?

peets

Extending and expanding value

When a fairly small company like Peet’s is attempting to grow the challenge is how to fund growth. The potential of the brand is really in its unique high quality products and the culture and commitment of the company which is obsessed with quality. How do you keep true to this as you grow? You get an investment parter where there’s synergy and mutual value.

Distribution and marketing

With Benckiser as the main owner of Peet’s the company is now part of food company that has distribution and other brands and stores that Peet’s products can extend into. And with capital flowing in, and the same management in place Peet’s can continue their growth across the U.S. with more stores and more product on retail shelves.

Retaining brand culture – it’s essential

The essential part of this expansion is retaining the value of the brand and Peet’s culture—that’s why I was glad to see the entire management team is staying in place.

So as Peet’s expands into new markets and even new countries, the real challenge is to ensure the future of the product brand is as unique and valued as it is now.

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