HomeRoast Digest


Topic: Peets and Starbucks (3 msgs / 70 lines)
1) From: Mark Neuhausen
My understanding is that Starbucks did buy Peets.  The two founders of
Starbucks bought out Peets and made their owner one of three Starbucks
co-owners.  Peets used to sell primarily beans and some beverages, and the
original Starbucks was almost entirely bean sales (yes, those overroasted
charred things).  The three owners disagreed on how much expansion and the
original owner of Peets wanted both rapid and expansion of stores and a push
into beverage sales.  He won, and bought out the original owners of
Starbucks and gave them the Peets name.  Over time, Peets is getting more
into beverages and is now a small competitor to Starbucks.  Starbucks,
meanwhile, has a strategy of opening as many stores as possible to inundate
people with the thought of coffee.  That explains why you can see two
Starbucks from another Starbucks store and they consider location including
the side of the street to pick up morning commuter traffic.
-Mark
P.S. This is my recollection of a Washington Post article on Starbucks about
a month ago.  If you go to the Washington Post website, you can probably
search on Peets and Starbucks and find the article.  It was definitely
either past mid-November or December.
-Mark
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2) From: Dan Bollinger
<Snip>
LOL!   In the movie "I am Sam," Michelle Pfeiffer's character goes to see
Sam, played brilliantly by Sean Penn, at work at Starbucks. She goes to the
right intersection, only to see four Starbucks, one on each corner!  Dan
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3) From: dewardh
Mark:
<Snip>
There were three "founders of Starbucks" . . . Zev Siegl, Gerald Baldwin, and 
Gordon Bowker.  Fairly early on, as my wife recalls it, they hired someone name 
"Jim" to do roasting for them (this may be the Jim Reynolds now at Peet's).
<Snip>
push
into beverage sales.
The "original owner" of Peet's (Alfred Peet) never had any part of Starbucks . 
.. . and during the time he owned the business (Peet's) resisted expansion . . . 
he *may* have been up to the third store (in the immediate Berkeley area) 
before he sold, but I'm not sure even that . . . there was an "intermediate" 
owner of Peet's between Alfred Peet and Baldwin et.al. and he may have been 
responsible for *all* the expansion beyond the original store (at Walnut and 
Vine).
While I don't know about the later developments (or anything about Howard 
Schultz) the beginning section (Company Background) of the following report 
best corresponds to my wife's recollections (about Starbucks early days . . . 
she worked with Zev in the store) . . . and is reasonably close to mine (about 
Peet's), although the "couldn't get a good cuppa in San Francisco before 
Peet's" is, in my opinion, nonsense.http://www.mhhe.com/business/management/thompson/11e/case/starbucks.htmlDeward
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