JAB Holding Co. continues global expansion with Intelligentsia Coffee
Peet’s Coffee & Tea, owned by JAB Holding Co., continues to expand its reach in the speciality coffee sector after purchasing a majority stake in Intelligentsia Coffee, just one month after acquiring Stumptown Coffee.
Both Intelligentsia and Stumptown are pioneers of the third wave of coffee which Dave Burwick, President and CEO of Peet’s Coffee & Tea, feels is being driven by millennials.
He describes millennial consumers as: “18-34 year-olds who are more affluent, purchase premium brands from other categories like craft beer and pressed juice, and seek variety and new experiences.”
The fact that millennials continue to demand better quality artisan food and drink also means that they are prepared to pay more for high-quality handmade coffee, a fact that speciality coffee roasters Intelligentsia and Stumptown have been able to capitalise on.
Intelligentsia will continue to operate independently. Co-founders Doug Zell and Emily Mange, as well as co-owner Geoff Watts, will each retain a significant stake and role in the company.
“Intelligentsia is built on the vision of creating a remarkable coffee experience,” said Doug Zell. “Peet’s respects our vision and shares our same values. Emily and I both spent many years in the Bay Area and watched first-hand as Peet’s scaled their business while staying committed to their quality and craft.”
In the last year, JAB Holding Co., which also owns Caribou Coffee, has acquired several other speciality coffee businesses including Espresso House and Baresso Coffee.
The question is, where will they look next?