Starbucks' smaller competitor is buying up some of the biggest names in coffee
On Friday, Pete's announced it will acquire a majority stake in Chicago-based roaster, Intelligentsia Coffee, according to Eater.
This is the second time in one month that Peet's bought a stake in a small coffee chain. It also acquired a stake in Portland-based Stumptown Coffee in early October.
Headquartered in Berkeley, California, Peet's has been expanding rapidly over the past few years.
After opening its first locations on the West Coast - like the other coffee giant, Starbucks - Peet's now has coffee shops in California, Colorado, Illinois, Maryland, Massachusetts, Oregon, Virginia, Washington, and Washington, DC.
Peet's says it will let Intelligentsia and Peet's continue to operate independently.
Stumptown is most commonly known for its ready-to-drink cold brew. Peet's will keep Stumptown as a separate brand and will retail the brand's name across its cafes, wholesale, and grocery channels.
As for Intelligentsia, the coffee shop has a total of 10 locations in Chicago, Los Angeles, and New York. It boasts its acute observance of the farming, roasting and cooling process of its coffee - offering a detailed description on its website.
Peet's Coffee & Tea CEO Dave Burwick, made this strategic move in order to continue to evolve to cater to millennials, according to the press release on the acquisition:
"We're excited to welcome Intelligentsia to the Peet's family as the growth of the super-premium coffee market continues to explode in the U.S. It's driven by 18-34 year-olds who are more affluent, purchase premium brands from other categories like craft beer and pressed juice, and seek variety and new experiences."
While Peet's may be driven by an 18-34 year old customer base, so is Starbucks, which has 21,366 locations world-wide.
With over 200 locations nationwide, Peet's has a way to go before being a major competitor of Starbucks.