Caribou Coffee Enters Long-Term Strategic CPG License Agreement with JDE Peet’s
Caribou Coffee, a global premium coffeehouse, has announced an agreement to license its brand in the consumer packaged goods and foodservice channels to JDE Peet’s for $260M. The transaction includes the transfer of Caribou Coffee’s roasting operations in Minnesota and its office coffee and foodservice contracts. This mutually beneficial transaction allows Caribou Coffee to focus on its core retail coffeehouse business while providing JDE Peet’s a strong 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 outside of its coffeehouses. JDE Peet’s will assume responsibility for supplying Caribou Coffee’s specialty grade coffee sold in its retail locations, made to its exacting standards. The two companies will jointly collaborate to ensure that Caribou Coffee’s branded coffee products reach new consumers across channels.
Caribou Coffee has made significant progress in its retail expansion plan through company-owned development and its franchise program, which should double domestic coffeehouses in the coming years. Through an expanded development agreement with current franchisees, Caribou Coffee also expects similar development internationally. These agreements reflect the growing demand for Caribou Coffee’s signature coffeeshop experience, and Caribou Coffee intends to continue working with its experienced franchise operators and welcome new franchisee groups in expanded development areas to reach new guests around the globe.
Fabien Simon, CEO of JDE Peet’s, is delighted with this partnership, adding Caribou to its existing portfolio of premium brands, including Peet’s, Stumptown, Intelligentsia, and L’OR, to serve more coffee lovers in North America. Caribou Coffee is part of Panera Brands, a portfolio of complementary brands bound by common values, comprising Panera Bread®, Caribou Coffee®, and Einstein Bros.® Bagels.
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Source: Coffee Talk