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Peet's Buying Stumptown

12341234
Cool.

Now you'll be able to get Stumptown wherever there is a Peet's?!

http://www.eater.com/2015/10/6/9466285/peets-coffee-tea-buying-stumptown-coffee-roasters

Comments

  • swamp_knobbler_mahanswamp_knobbler_mahan
    I wonder if the quality will suffer? Peet's Coffee is horrible.
  • swamp_knobbler_mahanswamp_knobbler_mahan
    Anybody want to venture a guess at the purchase price?

    I literally have no clue but going to say ~$80 million.
  • UncleBoatShoes2011UncleBoatShoes2011
    LETS BET ON STUMPTOWN PRICE!

    I'm guessing way lower. Little Big Burger went for like $5 mill?
    The big value of Stump is in the brand and in the cold brew business.

    I'm guessing $18-$20 mill

    My guesses: you won't be able to get Stumptown where there is Peets, and I don't think Stumptown quality will suffer (at least for like 3 years)
  • swamp_knobbler_mahanswamp_knobbler_mahan
    If Blue Bottle has received at least $45 million in VC, where would that put Stumptown's valuation, though?

    "In 2012, a group of investors including Google Ventures and Evan Williams, the co-founder of Twitter Inc., bought a $20 million controlling stake in Oakland, Calif.-based Blue Bottle. The company last year raised another $25.75 million from new and existing investors." - http://www.wsj.com/articles/tsg-explores-sale-of-stake-in-stumptown-coffee-1431117434

    Arguably Stumptown's more well-known and their cold brew business is just exploding. Dunno though, Bay Area famously overvalues stuff.
  • UncleBoatShoes2011UncleBoatShoes2011
    Good info!

    Stumptown is trending nationwide on Twitter right now.
  • swamp_knobbler_mahanswamp_knobbler_mahan
    Do you think it's telling that Blue Bottle was so open about its capital infusions and amounts while Stumptown has kept it under wraps? Like, SF celebrates wealth and capitalism while old school Portlanders tend to shun it, or at least keep it a secret?

    When that private equity group essentially bought Stumptown, Duane was like "eh it was just a buddy of mine giving us some money to do some stuff". It was actually a much bigger deal than that. But the figures are nowhere to be found because all the companies involved are private and don't have to disclose numbers.
  • MirandaJulyMirandaJuly
    I feel bad for the real hardcore Stumptown "family" of longtime workers who drank the Kool Aid and now work for Peet's.
  • 12341234
    edited October 2015
    They still work for Peet's. I mean, no one at Peet's think they work for JAB, right?
  • SchlabeSchlabe
    edited October 2015
    Stumptown was bought in 2011 by TSG Consumer Partners, and nothing changed. I'm guessing some things might change at Peet's though.
  • marijkemarijke
    Jos A Bank owns Peet's?!
  • Dr_William_HaywardDr_William_Hayward
    Stumptown revenue is ~50. I haven't tracked food & bev buyouts, but I am sure they are valued at >1x revenues. If there is a lot of debt, the valuation would be less that. Presumably JAB is buy and hold for cash flow.
  • MirandaJulyMirandaJuly
    I wonder if any workers got equity.
  • Dr_William_HaywardDr_William_Hayward
    edited October 2015
    http://blog.euromonitor.com/2015/10/new-era-dawns-for-global-coffee-as-peets-and-stumptown-combine.html is how Stumptown is thinking. The Stumptown way barista training is a thing, and they have a great microsource supply chain.
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