At an investor conference today in Amsterdam, executives from the multinational coffee conglomerate JDE Peet’s outlined a new vision for California-based Peet’s Coffee, focusing on omni-channel growth above concepts such as local heritage or premiumization.
Part of what the company called its “Reignite the Amazing” campaign, the vision for Peet’s primarily focuses on franchising, broader retail distribution of the brand’s most popular products and convenience-oriented products such as ready-to-drink, according to presentation documents shared by JDE Peet’s.
The group said it is laying the groundwork to transform Peet’s Coffee into a $2.5 billion brand in the U.S., with a focus on expanding beyond the legacy-driven stronghold of California, where Peet’s was founded in the Bay Area by Alfred Peet in 1966. Peet’s is currently the second largest brand in the JDE Peet’s portfolio in terms of sales, drawing in approximately $900 million last year.
The new direction comes under the watch of JDE Peet’s CEO Rafa Oliveira, who assumed the position last November.
Not mentioned in the documents were Peet’s subsidiaries, including previously acquired brands Intelligentsia Coffee and Stumptown Coffee Roasters. While JDE Peet’s owns more than 60 coffee brands globally, the investor presentation today outlined a refocusing on three “best bets,” including L’OR as a global “megabrand,” Peet’s as the U.S. leader and 10 other “heritage brands” under the Jacobs umbrella in different global markets.
For Peet’s, the Dutch conglomerate said it plans to make several key shifts, including:
- Store growth through franchising. Peet’s intends to expand its retail footprint nationally, expanding more beyond California through franchising.
- Broader retail distribution through partnerships. The company outlined a plan to move away from its Direct Store Delivery (DSD) system in favor of direct shipments through consumer packaged goods (CPG) partners.
- Increased marketing investments. The company hinted that it would move away from local affiliations — such as with the Golden State Warriors of the NBA — in favor of broader national campaigns.
- Product innovation. Without going into great detail, the company said it planned to move Peet’s away from its characteristic dark roasts into more medium roasts, while also investing in “everything cold,” and products prioritizing user convenience such as instant, ready-to-drink (RTD) and concentrates.
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