BROOKLYN CENTER, Minn. — Editor's note: The video above first aired on KARE 11 in November 2023.
The caffeine-lover's Midwestern cult-favorite Caribou Coffee announced a deal to license its brand to beverage company JDE Peet's Friday, essentially handing over its roasting, marketing and distributing operations.
A statement from the coffeehouse said the agreement was valued at $260 million, and includes the transfer of Caribou's roasting operations in Minnesota, as well as its office coffee and foodservice contracts. Caribou said the deal is "mutually beneficial," allowing it to focus on "its core popular retail coffeehouse business," while JDE Peet's will help expand its efforts outside its coffeehouses and across North America.
The deal is expected to close, subject to typical closing conditions, in the first quarter of this year.
“This transaction validates the success of multiple business platforms our team has built over the last several years, and JDE Peet’s has the right resources, expertise and team to continue its growth trajectory,” said John Butcher, president and CEO of Caribou Coffee, in a statement. “At the same time, the transaction will leave Caribou Coffee in a stronger position to do what we do best: providing guests with delicious products served alongside an award-winning customer experience."
JDE Peet's also released a statement, saying the company is "delighted" to enter into the partnership.
"Caribou is an iconic brand with outstanding facilities and we will complement its strong brand equity with JDE Peet’s’ distribution and innovation capabilities to strengthen our presence and serve more coffee lovers in the largest coffee market in the world,” said Fabien Simon, CEO of JDE Peet’s, in a statement.
Minnesota-based Caribou Coffee currently has more than 800 locations in 11 countries, a significant growth since the opening of its first location in Edina in 1992.
With its new partnership, Caribou said it does not expect the need for store closures or staff layoffs.
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