Caribou Coffee, a company that operates 800 coffeehouses worldwide, has secured an agreement to license its brand in the consumer packaged goods and foodservice channels to JDE Peet’s in a transaction valued at $260m.
The deal also includes the transfer of Caribou Coffee’s roasting operations in Minnesota and its office coffee and foodservice contracts. The two companies stated that the transaction wiuld enable Caribou Coffee to focus on its core retail coffeehouse business while providing JDE Peet’s a platform to expand its premium coffee portfolio in North America. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions.
Under the licensing agreement, JDE Peet’s will manufacture, market and sell Caribou Coffee’s consumer packaged goods and foodservice coffee products. The owner of brands such as Douwe Egberts, Kenco and L’OR will assume responsibility for supplying Caribou Coffee’s specialty-grade coffee sold in its retail locations, and the two companies will jointly collaborate to ensure that Caribou Coffee’s branded coffee products reach new consumers across channels.
“This transaction validates the success of multiple business platforms our team has built over the last several years, and JDE Peet’s has the right resources, expertise and team to continue its growth trajectory,” said John Butcher, president and CEO of Caribou Coffee.
With coffeehouses in 11 countries, Caribou Coffee has made progress in its retail expansion plan through company-owned development as well as its previously announced franchise program that should double domestic coffeehouses in the coming years. Through an expanded development agreement with current franchisees, Caribou Coffee also expects similar development internationally.
Fabien Simon, CEO of JDE Peet’s, commented: “We are delighted with this partnership, which adds Caribou to our existing portfolio of premium brands which we distribute, including Peet’s, Stumptown, Intelligentsia and L’OR, to serve more coffee lovers in North America. Caribou is an iconic brand with outstanding facilities, and we will complement its strong brand equity with JDE Peet’s’ distribution and innovation capabilities to strengthen our presence and serve more coffee lovers in the largest coffee market in the world.”
“We wholeheartedly welcome a new team of talented employees to the JDE Peet’s family and look forward to integrating their expertise and insights into our operations. We will work closely with the Caribou team on the ongoing development of Caribou-branded products, as Caribou continues to expand its operations in the United States and abroad.”
