Will Starbucks buy Peet's? Let's talk about it in the OPEN THREAD

There's a lot of chatter about Starbucks possibly acquiring Peet's -- a rumor fueled by Howard Schultz's statement this week that SBUX is interested in “buying large and small companies” to grow its consumer products business. Discuss this or anything Starbucks-related in the OPEN THREAD.

Comments

[BaristaG]

It makes sense that Howard would purchase another company founded by the same people who sold him the Bux. I just hope that the company doesn't become too sprawling and unwieldly again. Then again, if it does, Howard can just lay-off several hundred people and award himself another bonus.

[winterene]

@#$%^&!!!

Starbucks needs to chill the @#$%^&! out!

They screwed up with overexpansion and had to go through the Great Starbucks Implosion of 2008/2009.

If they start buying up companies, I predict they are going to end up closing a lot of those in the future.

Last thing I need is a bunch of Peet's locations being converted to Starbucks and then closing a few months later before I have a chance to visit. Every time this happens (a store closing before I can visit), it's like a sharp spear stabbing me right in the heart.

JUST CHILL THE @#%%^&^ OUT WITH THE GROWTH STARBUCKS!!!

[BaristaG]

@Winter Winter

So, you realize that cocaine is not an normal coffee additive, right? Its only good business to expand and make more money. Its only good business to diversify. I don't think anyone is hoping to see the Bux tank in another major venture costing people's lively-hoods and such, but you can't blame them for trying to stay wealthy.

[winterene]

No, I can't blame them for making wise decisions about expansion. And I'm not saying that whatever they end up doing (these are just rumours) will be a bad decision.

I am saying that it's too soon, and that they ought to chill for a while longer before tackling expansion again.

But hey, that's just my opinion, in part motivated by my personal goals and fears of losing more stores. I'm certainly not an analyst.

[Barista Ben]

odds are they wouldnt change the peet's to sbux's. I think starbucks wants to branch out and become a megacorp that has 10 different companies, all competing with each other, all funneling the cash into one single place.

[blarg]

I quit sbux in 2009 because I was sick of being one of two people on the floor with a line out the door. I switched to Peet's. Peet's has its own problems and if sbux buys them out and holds them to 90% Eco-sure scores the whole company would be fired. lol

[Starbuckers Inc.]

Barista Ben, that's what Coffee Connection was originally told when they were bought out by Starbucks in 1994. Nothing much was going to change, they'd just become a division of Starbucks. (And we'll just take that Frappucino invention while we're at it, thanks.) And then slowly but surely, everything changed, to the point where Coffee Connection no longer existed within about 2 years or so (I'm fuzzy on the timeline, 15+ years later).

I think it would be a shame in terms of the diversity and friendly competition. But then, I know I'm a little naive in terms of business.

[Coffee Soldier]

@ Winter Winter...I've always wondered what do you do for a job that funds all your travel around to go to ech Starbucks? Are you sponsored or a writer or something that allows you to work on the road?

How is the 12 pack Via BOGO going for you all? I left at 4p and we were up to 64 packages. I wish they had put this one on a Saturday with more traffic coming through!

[winterene]

No, I just work computer programming contracts and save up my money for travel.

Anybody know how I can get my TypePad name to display as just "Winter" so people will stop referring to me as "Winter Winter".

[winterene]

I changed it in my profile--did it work?

[dan]

@ coffee soldier:

when I left at 4pm we were at 75 packages, or roughly $400. I talked to other stores in the area that were only at around $85 bucks! We had a great day. Lots of people stocking up.

Although I'm happy with that much in sales, I am not looking forward to the next couple of weeks when people have already bought it and I need more sales!

[Coffee Soldier]

@ no longer Winter Winter...yes you are winterene!

Good luck on your quest!

[Redacted]

I do not know where Starbucks would get the cash. The cost of getting out of their contract with Kraft will cost a minimum of $500 million with the analysts at the Wall Street Journal figuring that the cost may be more like $1.5 billion, yes that is billion with a "B".

[karldotcom]

Good grief. Starbucks buying Peet's...Starbucks buying Dean's Foods. Where will the rumors end? Maybe they will buy Kraft Foods too.

[PCT4Life]

Interesting rumor, and one i haven't heard yet... As a tenured Peet's employee, I find it hard to believe simply because Peet's prides itself on its culture and history. When we introduced flavored syrups to our beverage menus in the late nineties, there was a some serious uproar and much staff turnover in protest. I cant even begin to imagine what a turnover in ownership would do to our ranks.

Starbucks certainly has the $$$ to attempt if it wants to, but based on how hard Pat O'Dea fights to keep the brand unique, I dont see it happening. And it would have to clear the SEC as we are a publicly traded company.

One thing is for certain, the ghost of Mr. Peet is not amused.

[pfft]

I can't believe some of you are taking this seriously and flipping out. Someone needs to chill out all right. As if this is a new rumor!

[Coffee Drinker]

Oh for peet's sake...

[ASR]

FrappuFreddo, anyone?

[Noah]

Throw enough Benjamins on the table and Peets is Starbucks bitch regardless of how wonderful Peets ownership thinks of the Peets unique culture.

[Aaron]

Redacted, I don't know a lot about this sort of thing, but couldn't they buy Peets using stock instead of cash? They've been buying back a lot of stock, so maybe they have enough? Especially considering Peets is 1/20 the size of Starbucks.

Anyhow, I don't really see how buying Peets would add enough value to Starbucks to justify the purchase. Peet's customer base will be pretty pissed, and will shrink a lot. They'd get another roasting plant, but do they really need it?

[Redacted]

@Aaron -- in the world of Big Business almost anything is possible, but not necessarily wise.

If us "common folks" and "small business" want to buy something we have to have the real cash and/or real credit to do it.

Big Business can leverage, speculate, trade, and hedge to create "money". Eventually the piper has to be paid and the piper does not accept this "vapor-money".

Yes, Peet's is small but I do not see any indication that they are wanting to sell. And, I don't think Starbucks would try a "hostile" takeover.

This Starbucks buying Peet's looks to be an unsubstantiated rumor.

[CD]

If Starbucks is interested in Peets, it would probably be more for the Consumer Package Goods (CPG) potential in retail outlets than growth in storefronts.

A key yet untapped part of Howard's transformation was to move into other retail spaces for Starbucks, hence the new ice creams, fusions, VIA, etc. Interest in buying Green Mountain, Peets, etc. has more to do with shelf space in grocery stores than storefronts on main street.

[east coast mgr]

@coffee soldier,
for the day we had exactly 100 12-packs, people sure did stock up ... Xmas blend on Thursday went even better though

[Coffee Soldier]

Sounds like many stores did awesome with the Via and WB BOGOs...The giftpacks and tumblers not so much for my store!

I'm hoping for a stock split soon...looking back at the other 5 split history now seems like as good as ever to me!

[latteteadah]

Really enjoying the 12 Days offers, stocked up on Christmas Blend via on Day 2, but hoping there will be a Tea BOGO or a different kind of tumbler offer before all is done. Would love to stock up on one of the seasonal tumblers and some tea.

As for Peet's - I would tend to agree with Winterene - business-wise, it's too soon to be looking at it as an expansion prospect when they're still shaking off the closures of last year. And Peet's is regional still for many - not available in my corner of the midwest except online.

[sorrynotea]

No tea deals.

[SBsmooth]

If so it would be the 2nd time Starbucks owned Peet's. They were once one company. The original founders of Starbucks Zev Siegl, Jerry Baldwin and Gordon Bowker were all protoges of Alfred Peet. They junmped at the chance to acquire Peets in the early 80's when it came up for sale. They then sold the Starbucks brand to Howard. Jerry still sits on the board at Peets and i think Gordon does too. Those two intensely dislike Howard and have said so in public interviews. I for one can't see them selling their baby to Schultz.

[PDX Barista]

Anyone have any background on why Keri Buschenkin (Boston Area) left 'bucks after 15+ years? Very sad to hear.

[Hipsterdufus]

how did a little stone cause that much damage to your teeth?

unfortunately it was probably the bakeries fault. Starbucks cannot inspect ever single pastry it gets in every single day.

[ncsm]

I sincerely hope that Starbucks does NOT but Peets. Peets is a successful, medium sized company that has become successful by doing the kinds of things that Starbucks ONCE did--serving a GREAT product in a WELCOMING environment with CONSISTENTLY capable baristas. Starbucks is simply far too hit or miss these days to justify taking a chance with my hard earned dollars.

[Sad Barista]

What is the most effective way in dealing with a store manager who doesn't follow the rules and guidelines set by starbucks?

[spence]

Sad Barista. If you are the only one in your store that feels that way, it might be you that is the problem. If not, see if your fellow partners will participate in a "skip meeting." That is when the partners meet directly with the DM. In my store, there was a lot of grumbling about his having favorites or retribution. I was new at the time and didn't see any of it. At the meeting, no one could provide 1 example; only rumors. Keep notes and be organized.

[Sad Barista]

@spence.

Not only does my entire store have feelings on this, but customers go to other stores now because of him and we cant get shifts covered here because of him. We have began documenting things about a month ago and have also tried contacting our DM but he doesn't respond to any of our calls.

[wasatech]

@PDX Barista - I'm not sure, but I thought she (Keri) was laid off.

[spence]

Someone needs to help Sad Barista. I'm not at work but I know there is a number to call. Is it in the front of the Cash Management Log on the first page?

[baristamclane]

Sad Barista, contact your Partner Resources Rep, and Business Conduct. Good for you and your store for documenting those incidents. I've worked with a couple nightmare partners of varying positions, and unfortunately no actions could be taken because the store partners would not take the initiative (or five minutes) it took to fill out an incident report in order to build a case against them. I hope things look up for your store.

[adoubleshotofclarity]

To the Peet's rumor point, it's not about the storefronts. It's about their CPG capabilities, as CD pointed out above.

I don't see Peet's or Green Mountain being the right fit here... Much more likely to be smaller companies in the packaging and distribution world that most of us have never heard of. Have to make up for those services Kraft was providing from somewhere.

[Waltie]

"What is the most effective way in dealing with a store manager who doesn't follow the rules and guidelines set by starbucks?"

Which rules and regulations is the manager not following?

[Melody]

@SadBarista - Yes what's going on that your SM is not following? If you haven't gotten a response from your DM, have you tried talking to you RD?

[Sad Barista]

There have been two instances I have been the only one working with him and he has left the store for 2 plus hours leaving me alone. He started a new cash policy with the shifts in which no ones till is dropped until the end of the night and then they throw them all in one bag.

He is constantly cursing at other partners about their personal life and he doesn't support customers in their legitimate claims about his disrespect. I could continue but I'm on my phone right now.

[Waltie]

Wow. Those are already pretty terrible. Call the partner hotline and tell them about these things. It's confidential, despite what some people claim. It sounds like this manager is out of control.

[Hipsterdufus]

i agree with waltie. call business conduct. it is anonymous

sometimes even when it is kept anonymous the SM still knows who called, but only because the problem is related to only 1 person, but I think in this case they wouldn't be able to track it because it sounds like these are widely known about problems.

why a manager would institute a policy to not drop any tills till closing is BEYOND me. they're going to screw themselves over when money starts to go missing. No accountability.

[Air Jordan 2]

Exactly. I admire it whenever I look at it

[ExSbuxManager]

Actually, Pete of Pete's Coffee is who taught the original founders of Starbucks how to roast coffee. WIth them being at opposite ends of the West Coast Starbucks wasn't seen as a competitor.

While there are differences, the roasting method Starbucks started using in 1971 was actually Pete's. Pete's is kind of the Grandfather of Starbucks. Id really hate to see the bucks ruin the last remains of their history in a Deliverance incest purchase of the company. Pete's is still very true and HAS A SOUL

[trick]

If I may, Starbucks wants Peets distrabution Center tahst it nothing else