Peet’s Coffee and Tea is going to acquire the Portland-based Stumptown Coffee Roasters, the coffee chains announced today.
While the official terms of the business agreement have not been released to the public, Stumptown will reportedly continue to operate independently, with the only difference being its access to Peet’s resources and scale. Peet’s, meanwhile, will also continue to operate “as is” and keep its growth strategy separate. Peet’s will have 100 percent ownership of Stumptown.
Stumptown’s founder Duane Sorenson released an official statement commenting on the transaction: “Stumptown’s journey has been about creating a coffee experience that surpasses all expectations,” he said. “I’m excited and confident that Peet’s will continue to support our journey in a way that uniquely reflects who we are.”
Stumptown was founded in Portland in 1999 and has since expanded to 10 locations across Portland, Seattle, New York and Los Angeles. Peet’s, meanwhile, has been around since 1966 and currently has 236 retail locations. It was founded in Oakland, but has since expanded all around the country—most recently it has focused on expansion in Chicago and Washington, D.C.
Joth Ricci, who will stay on as Stumptown’s president, told the Wall Street Journal that the acquisition will help Stumptown grow its sales in grocery stores. Packaged coffee, he said, has been among the fastest growing segments for Stumptown—and he wasn’t just talking about its recent batch created in honor of Late Night host Steven Colbert, endearingly labeled "Col’ Brew."
Stumptown opened its first Los Angeles location in the Arts District back in 2013.