News

Peet's Coffee & Tea acquires Mighty Leaf Tea

August 4, 2014

Peet's Coffee & Tea Inc. announced today that it has acquired Mighty Leaf Tea in partnership with Next World Group, a private investment firm.

Mighty Leaf Tea will continue to operate independently and will have full access to Peet's resources, capabilities and scale. In addition, Peet's will continue to produce and market its own signature tea brand across its foodservice and retail channels. Next World Group will hold a minority stake in the partnership.

"We're excited to add Mighty Leaf Tea to the Peet's family as we're both Bay Area companies with core values built on the highest standards of quality and deep commitment to craft -- it's a natural, complementary fit," said Dave Burwick, president and CEO of Peet's Coffee & Tea, in a company press release. "Mighty Leaf is a fantastic premium brand, known for its artisan teas and signature hand-designed mesh tea pouch; their addition to our existing tea business enables us to further strengthen and accelerate our growth in this market."

Peet's is on track to add nearly 60 stores by the end of 2014, including 20 stores in Washington, D.C., and 20 more in Chicago and southeast Wisconsin.

Also, Peet's recently launched a new, contemporary store design in many of its new and existing U.S. stores, and has expanded its presence in the single-serve category with Peet's K-Cup packs.

The aquision follows the lead of coffee giant Starbucks, which acquired Teavana in 2012. Starbucks is now reaping the benefits of that acquision, posting strong results in Q3 2014, boosted in part by the the introduction of new beverages that lift sales across dayparts.