Is Starbucks interested in buying Peet's Coffee?
EMERYVILLE, Calif. (KGO) -- Emeryville-based Peet's Coffee and Tea already has a $1 billion offer to sell itself to a German company, but other buyers may be ready to bid and one in particular may be ready to stir things up. To some loyal Peet's customers, the news couldn't be worse.
The hot rumor is that Starbucks is interested in Buying Peet's. Stock for Peet's was up last week after Joh. A. Benckiser offered to buy the company. This ultimately brought analysts to speculate that Starbucks may be ready to offer $80 a share for Peet's, $7 more than the offer currently on the table. Analysts say buying Peet's would make sense for Starbucks because it would give the company entry into the gourmet coffee market.
For a 12 oz. bag of coffee, Peet's sells for $1 more than Starbucks does. Peet's also has 190 cafes in the U.S. and is selling in stores like Whole Foods and Walmart. Still, there are many who don't like the sound of the deal. "No, I think they'd probably discontinue and not even have the same flavor as Peet's. I think they're just looking to make their franchise bigger, not really keep Peet's coffee," said customer Kelly Scott of Vallejo.
As of now, the deal is just speculation. Executives from Peet's and Starbucks did not have any comments. Executives from Starbucks said they would not comment on rumors, ultimately sustaining the rumor even more. All the same, some Wall Street analysts say the deal makes sense, asking who could be jacking up the stock price other than an attractive buyer with cash and motivation, like Starbucks.
food, emeryville, starbucks, business, terry mcsweeney
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