Peet's Coffee & Tea Posts Big Sales Jump
The West Coast coffeehouse niche marketer is focused on expanding its brand recognition through grocery store distribution first.
Peet's Coffee & Tea Inc. reported a 17 percent increase in first-quarter revenue as the Emeryville, Calif.-based coffeehouse and roaster made headway on its expansion into East Coast grocery stores.
The company reported first-quarter net income of $2.1 million on sales of $67.1 million compared with net income of $1.4 million on sales of $57.5 million for the same period a year ago.
Peet's retail revenue increased 14 percent to $44.6 million during the quarter, up from $39 million a year ago. The company opened nine retail stores during the quarter.
Peet's specialty revenue was up 22 percent to $22.5 million, compared with $18.5 million a year earlier. The company added 1,100 new grocery accounts, making its coffee line now vailable in 6,900 stores, up about 2,400 from a year ago. Peet's has a target of entering 8,000 grocery stores by year-end.
Peet's Coffee & Tea was founded in 1966 in Berkeley by Alfred Peet. His style of coffee was a radical departure from what was then available then, emphasizing smaller batches, freshness, superior quality beans, and a darker roasting style that produced coffee with richness and complexity. Peet's avid customer base are affectionately referred to ont eh web site as "Peetniks."
According to the web site, "Alfred Peet further catalyzed the specialty coffee movement when he mentored and inspired a generation of coffee entrepreneurs, including the founders of Starbucks, whom he supplied with Peet's roasted beans during their first years of operation."