Peet's Coffee & Tea
Encyclopedia
Peet's Coffee & Tea is a specialty coffee
roaster
and retailer. Founded in 1966 by Alfred Peet
(1920–2007) in Berkeley, California
as "Peet's Coffee, Tea & Spices", Peet's is especially known for its strong, dark roasted coffee, including its Major Dickason blend.
started Peet's Coffee & Tea as a single store in 1966 in Berkeley, California
. Peet's original outlet is still located on the corner of Walnut and Vine (2124 Vine Street) in Berkeley, close to the University of California, Berkeley
(although it has been renovated to match the look of the newer Peet's outlets elsewhere). Peet grew up in the coffee business while living in the Netherlands as a child. Moving to San Francisco, California
, when he was 35, he began roasting coffee as he knew it. Peet's now roasts at a plant in nearby Alameda
. Alfred Peet died of cancer on August 29, 2007, at the age of 87 in his home in Ashland, Oregon.
The three founders of Starbucks, who knew Alfred Peet personally, founded Starbucks
in Seattle, Washington
and bought the coffee beans for Starbucks directly from Peet's during their first year of business in 1971. Peet sold his business in 1979 but stayed on as a coffee buyer until 1983. In 1984 Jerry Baldwin
, one of the original founders of Starbucks and Alfred Peet's former partner, and co-owner Jim Reynolds, the roastmaster, with a group of investors bought Peet's' four Bay Area locations. In 1987, Baldwin and Peet's owners sold the Starbucks chain to focus on Peet's, and Baldwin and Howard Schultz, Starbucks' new owner, entered into a no-compete agreement in the Bay Area.
s) due to their strong customer loyalty.
Peet's operates 193 retail locations within the US as of the first quarter of 2010. Most locations are in California
, though there are also Peet's locations in Washington, Oregon
, Colorado
, Illinois
, and Massachusetts
.
Peet's is located at various transit centers, including several airport locations, such as both major Houston airports (HOU
and IAH
), Reno/Tahoe (RNO) in Reno, Nevada
, Kennedy Airport (JFK
) in New York City, and all three major airports in the San Francisco Bay Area
(SFO, OAK, & SJC). A number of franchised Peet's kiosks opened in BART stations around the Bay Area in early 2008.
In 2003, the first full-service Peet's store on a university campus was opened within the Clark Center building at Stanford University
. Peet's coffee is also currently served at all Stanford Dining locations. In 2005, UC Berkeley
opened its own Peet's franchise on campus in Dwinelle Hall and as a campus restaurant near its existing dining area. Similarly in 2009, locations opened at the UW–Madison
, Villanova University
, Memorial Union
and at UC San Diego
.
Peet's coffee is also sold at many grocery store
s in the United States.
Peet's has been much slower to expand than Starbucks, focusing more on coffee and tea retailing, rather than a coffee bar. Peet's is still primarily a California
operation, with a few stores in other metropolitan areas (see below) and a short-lived four-store partnership in Tokyo. Peet's also operated a store in Austin, Texas from 2001 to 2005.
The company went public in January 2001 (symbol PEET). After a very successful IPO
, shares struggled through the first year but have posted solid gains ever since. As of May 2011, Peet's has a market cap
of roughly $636 million, about 2.3% of Starbucks's roughly $27.2 billion.
In 2007 Peet's opened its new and completely green roasting plant in Alameda, California
. This new plant replaced the former operations in Emeryville, California
.
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
roaster
Coffee roasting
Roasting coffee transforms the chemical and physical properties of green coffee beans into roasted coffee products. The roasting process is what produces the characteristic flavor of coffee by causing the green coffee beans to expand and to change in color, taste, smell, and density...
and retailer. Founded in 1966 by Alfred Peet
Alfred Peet
Alfred H. Peet was a Dutch-American entrepreneur and the founder of Peet's Coffee & Tea in Berkeley, California, in 1966. He is most famous for introducing custom coffee roasting to the United States....
(1920–2007) in Berkeley, California
Berkeley, California
Berkeley is a city on the east shore of the San Francisco Bay in Northern California, United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington...
as "Peet's Coffee, Tea & Spices", Peet's is especially known for its strong, dark roasted coffee, including its Major Dickason blend.
Company history
Alfred PeetAlfred Peet
Alfred H. Peet was a Dutch-American entrepreneur and the founder of Peet's Coffee & Tea in Berkeley, California, in 1966. He is most famous for introducing custom coffee roasting to the United States....
started Peet's Coffee & Tea as a single store in 1966 in Berkeley, California
Berkeley, California
Berkeley is a city on the east shore of the San Francisco Bay in Northern California, United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington...
. Peet's original outlet is still located on the corner of Walnut and Vine (2124 Vine Street) in Berkeley, close to the University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
(although it has been renovated to match the look of the newer Peet's outlets elsewhere). Peet grew up in the coffee business while living in the Netherlands as a child. Moving to San Francisco, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, when he was 35, he began roasting coffee as he knew it. Peet's now roasts at a plant in nearby Alameda
Alameda, California
Alameda is a city in Alameda County, California, United States. It is located on Alameda Island and Bay Farm Island, and is adjacent to Oakland in the San Francisco Bay. The Bay Farm Island portion of the city is adjacent to the Oakland International Airport. At the 2010 census, the city had a...
. Alfred Peet died of cancer on August 29, 2007, at the age of 87 in his home in Ashland, Oregon.
The three founders of Starbucks, who knew Alfred Peet personally, founded Starbucks
Starbucks
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and...
in Seattle, Washington
Seattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...
and bought the coffee beans for Starbucks directly from Peet's during their first year of business in 1971. Peet sold his business in 1979 but stayed on as a coffee buyer until 1983. In 1984 Jerry Baldwin
Jerry Baldwin
Jerry Baldwin, along with Gordon Bowker and Zev Siegl, founded Starbucks in Seattle in 1971.Baldwin learned the coffee trade from Alfred Peet, whose store Peet's Coffee & Tea was the inspiration for Starbucks. Starbucks purchased roasted coffee beans from Peet's during its first year of operation...
, one of the original founders of Starbucks and Alfred Peet's former partner, and co-owner Jim Reynolds, the roastmaster, with a group of investors bought Peet's' four Bay Area locations. In 1987, Baldwin and Peet's owners sold the Starbucks chain to focus on Peet's, and Baldwin and Howard Schultz, Starbucks' new owner, entered into a no-compete agreement in the Bay Area.
Operation
Peet's has a devoted following, sometimes known as Peetniks (a play on BeatnikBeatnik
Beatnik was a media stereotype of the 1950s and early 1960s that displayed the more superficial aspects of the Beat Generation literary movement of the 1950s and violent film images, along with a cartoonish depiction of the real-life people and the spiritual quest in Jack Kerouac's autobiographical...
s) due to their strong customer loyalty.
Peet's operates 193 retail locations within the US as of the first quarter of 2010. Most locations are in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, though there are also Peet's locations in Washington, Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, and Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
.
Peet's is located at various transit centers, including several airport locations, such as both major Houston airports (HOU
William P. Hobby Airport
William P. Hobby Airport is a public airport in Houston, Texas, located from Downtown Houston. The airport covers and has four runways. Hobby Airport is Houston's oldest commercial airport and was the city's primary air terminal until the opening of Houston Intercontinental Airport in 1969...
and IAH
George Bush Intercontinental Airport
George Bush Intercontinental Airport, is a Class B international airport in Houston, Texas, serving the Houston–Sugar Land–Baytown metropolitan area, the sixth-largest metropolitan area in the United States. Located north of Downtown Houston between Interstate 45 and U.S. Highway 59...
), Reno/Tahoe (RNO) in Reno, Nevada
Reno, Nevada
Reno is the county seat of Washoe County, Nevada, United States. The city has a population of about 220,500 and is the most populous Nevada city outside of the Las Vegas metropolitan area...
, Kennedy Airport (JFK
John F. Kennedy International Airport
John F. Kennedy International Airport is an international airport located in the borough of Queens in New York City, about southeast of Lower Manhattan. It is the busiest international air passenger gateway to the United States, handling more international traffic than any other airport in North...
) in New York City, and all three major airports in the San Francisco Bay Area
San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas...
(SFO, OAK, & SJC). A number of franchised Peet's kiosks opened in BART stations around the Bay Area in early 2008.
In 2003, the first full-service Peet's store on a university campus was opened within the Clark Center building at Stanford University
Stanford University
The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...
. Peet's coffee is also currently served at all Stanford Dining locations. In 2005, UC Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
opened its own Peet's franchise on campus in Dwinelle Hall and as a campus restaurant near its existing dining area. Similarly in 2009, locations opened at the UW–Madison
University of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
, Villanova University
Villanova University
Villanova University is a private university located in Radnor Township, a suburb northwest of Philadelphia, Pennsylvania, in the United States...
, Memorial Union
Memorial Union (Wisconsin)
The Memorial Union, known locally as simply "the Union", is located on the shore of Lake Mendota on the campus of the University of Wisconsin–Madison in Madison, Wisconsin. Between the building and the lake is the Terrace, a highly-popular outdoor space....
and at UC San Diego
University of California, San Diego
The University of California, San Diego, commonly known as UCSD or UC San Diego, is a public research university located in the La Jolla neighborhood of San Diego, California, United States...
.
Peet's coffee is also sold at many grocery store
Grocery store
A grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
s in the United States.
Peet's has been much slower to expand than Starbucks, focusing more on coffee and tea retailing, rather than a coffee bar. Peet's is still primarily a California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
operation, with a few stores in other metropolitan areas (see below) and a short-lived four-store partnership in Tokyo. Peet's also operated a store in Austin, Texas from 2001 to 2005.
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, shares struggled through the first year but have posted solid gains ever since. As of May 2011, Peet's has a market cap
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of roughly $636 million, about 2.3% of Starbucks's roughly $27.2 billion.
In 2007 Peet's opened its new and completely green roasting plant in Alameda, California
Alameda, California
Alameda is a city in Alameda County, California, United States. It is located on Alameda Island and Bay Farm Island, and is adjacent to Oakland in the San Francisco Bay. The Bay Farm Island portion of the city is adjacent to the Oakland International Airport. At the 2010 census, the city had a...
. This new plant replaced the former operations in Emeryville, California
Emeryville, California
Emeryville is a small city located in Alameda County, California, in the United States. It is located in a corridor between the cities of Berkeley and Oakland, extending to the shore of San Francisco Bay. Its proximity to San Francisco, the Bay Bridge, the University of California, Berkeley, and...
.
External links
- Peet's Company Information including Annual Report