Starbucks To Buy Peet's Coffee?

The original Peet’s Coffee in Berkeley is said to have been the inspiration for the founders of coffee colossus Starbucks. Now the ‘Bucks may be looking to return the favor by acquiring the smaller chain.

According to reports, the two companies have had discussions about the deal. Analysts predict that Starbucks could quickly double or triple the value of Peet’s, which currently has almost 200 retail outlets in addition to its brands of packaged coffees it sells through Safeway and Kroger.

An acquisition by Starbucks would also help Peet’s get into the single-cup coffee market, especially after the recently announced deal between Starbucks and Green Mountain in which Starbucks will make single-cup coffee offering’s for Green Mountain’s Keurig machines. Those machines will now also be sold by Starbucks.

But while all this talk of expanding Peet’s brand is good for shareholders, is there the risk of watering down the brand itself? If there are any Peetniks out there, let us know your feelings below.

Starbucks and Peet’s in recent deal talks: report [Reuters]