Caribou Coffee announced this week a $260 million change to its business model, though it's not one the average latte-sipper will notice.
The long-term licensing deal with Amsterdam-based JDE Peet's essentially takes on Caribou's roasting operations, freeing up the Minnesota-founded chain to focus on its coffeehouses.
"Caribou Coffee will continue to be based in and operate from Minnesota. ... Our specialty coffee will continue to be roasted at the same roastery in Brooklyn Center," the company said in a statement.
JDE Peet's, which has approximately 20,000 employees and distributes a portfolio of more than 50 coffee brands, will expand marketing and sales of Caribou's consumer packaged goods and foodservice coffee products. Other popular coffee lines — including Peet's, Stumptown, Intelligentsia and L'OR — have also chosen to work with JDE Peet's.
The arrangement, which should close in the first quarter of this year, "is not expected" to lead to any coffeehouse closures or job losses, per a news release.
Caribou has struck deals with domestic franchisees to open more than 300 locations nationwide, and in total, it has more than 800 coffeehouses in 11 countries. Early last year, though, Caribou shuttered eight locations in downtown Minneapolis. Its first location in Edina, which launched the business in 1992, closed last month.
Both Caribou and JDE Peet's are part of German-based JAB Holdings, with Caribou under its Panera Brands umbrella.
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