On Tuesday Peet’s Coffee & Tea said it came to an agreement to buy its kind of Stumptown Coffee Roasters with a deal that could give Peet’s a greater foot shaped impression in the premium coffee market.
Stumptown’s majority proprietor, private-equity firm TSG Consumer Partners LLC, had been working on a potential offer of the Portland, Ore.- based roaster and retailer.
Duane Sorenson, Stumptown’s author, said he has sold his stake in the company.
“I sold every one of my shares” to Peet’s, he said in an email.
Peet’s is controlled by JAB Holding Co., which has forcefully pursued other coffee companies. Poke drove a group that acquired D.E. Expert Blenders NV in 2013 for EUR7.5 billion.
“So as to win, you need to have the capacity to win with more than one brand,” Mr. Burwick said.
Peet’s, which was established in 1966, diminutive people Stumptown with its 236 retail stores, alongside a bundled coffee business, mastery Mr. Burwick says it will use to assist Stumptown with developing its deals in markets and different outlets.
Mr. Burwick and Joth Ricci, who will keep focused Stumptown’s president, said Stumptown’s name and branding would stay under its new ownership. Mr. Burwick called it: “scaling with diminutiveness.”
As far as concerns him, Mr. Ricci said bundled coffee has been among Stumptown’s quickest developing sections.
Stumptown was established in 1999 with a solitary area in Portland and it has extended to near twelve coffee shops under TSG. The roaster opened new areas, including new coffee shops and another simmering plant in Los Angeles.
The roaster and coffee shop administrator has likewise extended its wholesale coffee business and recently propelled a chilly mix coffee in a can, called as Nitro Cold Brew.
Stumptown and associates, for example, Intelligentsia Coffee, Blue Bottle Coffee Co., La Colombe Torrefaction and Toby’s Estate Coffee have all developed quickly because of solid interest for gourmet blends.
From 2000 to 2015, day by day utilization of gourmet coffee expanded around triple to around 33% of U.S. coffee consumers, said Joe DeRupo, a representative for the National Coffee Association USA, a trade group.
TSG purchased its stake in Stumptown in 2011 after interests in beverage companies, for example, Vitaminwater.
The Stumptown deal may mean more deals in transit for other little, gourmet roasters as bigger companies look to acquire market share from consumers excited to shell out additional for a premium blend, analysts said.
“We can expect further union among top-level art roasters,” said Ross Colbert, a beverage strategist at Rabobank International. “Enormous Coffee sees further upside in littler, territorial roasters. In coffee, (similar to lager) little is delightful.”