Peet's Buys Diedrich - Finally Gets Into the K-Cup Business
CNN Money and others are reporting that Peet's had indeed offered to buy Diedrich Coffee. Last Monday Peet's announced its offer to buy Diedrich for about $213 million in cash and stock, and plans to use its established grocery distribution system for selling its own bagged coffee, and to use that same channel to push more Diedrich K-Cups and eventually perhaps even Peet's K-Cups.
Peet's also plans to eventually sell its namesake coffee in K-Cup forms, joining the fast-growing segment. Shipments of K-Cups are up 60% through its first three-quarters to $1.18 billion units, according to Green Mountain Coffee, while shipments of the machines needed to brew the cups are up 144% during that time.
By acquiring Diedrich, Peet's will also get the infrastructure needed to get set up those capabilities.
Very exciting news indeed, but let's hope they keep the Diedrich coffees and brand around. We love a the variety of K-Cups available, and hope they expand and enhance the K-Cup world of single cup coffee not just replace Peet's coffees for Diedrich coffees.
At Peet's Deal For Diedrich Could Froth 'K-Cup' Business
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Posted by Jay Brewer at November 9, 2009 7:32 AM