Earlier this month Peet’s Coffee & Tea announced that it would acquire Stumptown Coffee Roasters in a deal that, while keeping the two companies operating as separate entities, is expected to offer synergistic opportunities for each brand and allow that new property to become a power player in the cold brew business.
At the time of the deal, Stumptown president Joth Ricci said that the brand will benefit from Peet’s sales and distribution network to expand the availability of Stumptown products, which include several packaged cold brew coffee products. At the same time, Peet’s will gain access to Stumptown’s expertise in commercial production of cold brew coffee as it looks to create its own ready-to-drink line of products, according to president and CEO Dave Burwick.
While consumer reaction to the deal varied (some fretted about the possibility of decline in quality of Stumptown coffee), industry executives and analysts largely praised it as one that will build upon growing awareness and demand for packaged cold brew products:
High Brew Coffee
It’s starting to become pretty clear that the cold brewed space is more of a trend than a fad, not just because of this deal, but just all of the entrants. We’ve got quite a bit of activity, and I think one of the big validators for us last year was Starbucks launching cold brewed coffee in 3,000 of their stores on the East Coast.
Everybody’s really starting to see the benefits of it. But at the same time, [a report from] Mintel showed the awareness around total U.S. on cold brewed coffee was a little less than half a percentage point, so a lot of education and awareness still needs to be done.