Coffee giant JDE Peet’s has entered into a long-term global licensing agreement to manufacture, market and sell Caribou consumer and foodservice coffee products.
The deal, expected to close in the first quarter of 2024, will provide JDE Peet’s a platform to expand its premium coffee portfolio in North America, the company noted.
It will also enable Caribou Coffee to focus on its core retail coffeehouse business.
The transaction, excluding Caribou coffeehouses, will see JDE Peet’s acquire Caribou’s roasting operations in Minneapolis, Minnesota.
The two companies have also reached a long-term strategic arrangement under which JDE Peet’s will supply coffee products for sale in Caribou’s coffeehouses.
“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,” said Fabien Simon, CEO of JDE Peet’s.
Caribou Coffee
Caribou operates more than 800 coffeehouses in 11 countries and has expanded its retail business through company-owned development, as well as its previously announced franchise programme aimed at doubling its coffeehouses in the US in the coming years.
Over the coming months, JDE Peet's and Caribou Coffee will work together to ensure a smooth transition of the latter's commercial coffee business and roastery assets.
This transaction is not expected to lead to any material coffeehouse closures or position eliminations, Caribou noted.
"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.
"JDE Peet's shares our commitment to responsible sourcing and high-quality standards, and we are excited to work with them to expand the reach of our storied brand as we maintain our legacy of consistency and quality," Butcher added.
