How Peet’s Coffee Bought Two Third Wave Brands

When Peet’s Coffee & Tea announced it had bought Chicago-based Intelligentsia Coffee for $100 million in late October 2015, just three weeks after acquiring Portland’s Stumptown Coffee Roasters, industry watchers sat up. This wasn’t just another chain adding locations—it was the biggest U.S. second-wave coffee company making a bold move into the third-wave space. But why would Peet’s, known more for dark roasts and diner-style coffee, spend big on two boutique brands with loyal followings?

In short: Peet’s paid around $100 million total to acquire both Intelligentsia and Stumptown, aiming to bring high-end, craft-focused coffee to a broader audience while keeping the acquired brands independent. Peet’s also stated it has no plans for further specialty café acquisitions.

Who Are Intelligentsia and Stumptown?

Intelligentsia, founded in 1995 by Doug Zell and Emily Mange in Chicago, now runs 10 cafés and two roasteries across Chicago, Los Angeles, and New York. It’s best known for its Black Cat espresso blend, and has trained four U.S. Barista Championship winners since 2003—earning a reputation as the “Harvard of coffee.”

Stumptown, launched in the 1990s and opening its first New York City shop in 2009, is famed for its Hair Bender blend, a light-to-medium roast designed for filter brewing. Unlike traditional espresso-heavy cafés, Stumptown emphasized pour-over methods using tools like the Chemex, AeroPress, and French press.

The Third Wave Coffee Movement

Both Intelligentsia and Stumptown are considered pillars of the “third wave coffee” movement—a term coined in 2002 by roaster Trish Rothgeb. This movement treats coffee with the same precision as craft brewing, focusing on origin, processing, roast profiles, and barista technique rather than mass production.

While Starbucks and Peet’s are labeled “second wave”—emphasizing better-quality coffee than instant but still positioned as a retail beverage—third wave players prioritize traceability, sustainability, and the craft of brewing. Other notable third-wave brands include Counter Culture and Blue Bottle, the latter often dubbed the “Apple of coffee.”

Who Is Peet’s, Really?

Founded in 1966 by Dutch immigrant Alfred Peet in Berkeley, California, Peet’s was the first major U.S. retailer to introduce dark-roasted arabica coffee on the West Coast. Its model of selling both brewed coffee and beans helped define the modern specialty coffee shop and inspired early Starbucks founders, who bought Peet’s beans in their first year.

But while Starbucks exploded globally—with over 10,000 stores by 2010—Peet’s lagged behind, operating just 193 U.S. locations that same year and generating $636 million in revenue, just 2.3% of Starbucks’ size. Competitors like Caribou Coffee (273 U.S. stores, 203 abroad) also outpaced Peet’s in scale.

Why Did Peet’s Make These Moves?

Peet’s has struggled to differentiate in a market dominated by Starbucks and challenged by newer, quality-focused brands. By acquiring Intelligentsia and Stumptown, Peet’s gains established, respected craft coffee brands with strong reputations for quality and training.

“Peet’s wants more consumers to enjoy high-quality coffee,” said Peet’s marketing chief Hayden Perry. The plan is to let both brands operate independently while expanding their reach under Peet’s ownership. However, Peet’s also made clear: “We have no intention of acquiring any more specialty cafés.”

Reactions from the Coffee Community

Not everyone is convinced the acquisitions will preserve the brands’ identities. Former Intelligentsia partner Kyle Glanville tweeted, “Intelligentsia is Peet’s now. I don’t recognize the world anymore.” Others, like Twitter user @Tim Schraeder, urged: “Dear @Intelligentsia, please don’t lose your soul.”

Critics worry that corporate ownership could dilute the independent ethos that made these cafés leaders in the third wave. Yet Peet’s argues it’s a way to get better coffee into more hands without compromising quality.

Frequently Asked Questions

What is third wave coffee?

Third wave coffee refers to a movement that treats coffee with artisanal, craft-like precision, emphasizing origin, processing methods, roast quality, and brewing techniques. It emerged in the early 2000s as a response to mass-market coffee, focusing on quality over quantity and often highlighting single-origin beans and direct trade practices.

Which brands are considered third wave coffee pioneers?

Intelligentsia, Stumptown, and Counter Culture are regarded as three of the most influential third wave coffee brands. Blue Bottle is also frequently cited, often referred to as the “Apple of coffee” for its premium positioning and design-focused approach.

What is Peet’s Coffee known for?

Peet’s Coffee, founded in 1966, is known for introducing dark-roasted arabica coffee to the U.S. West Coast and for its role as an early influence on Starbucks. It is generally categorized as a second-wave coffee company, focusing on better-quality brewed coffee as a retail product.

How much did Peet’s pay for Intelligentsia and Stumptown?

Peet’s paid approximately $100 million in total to acquire Intelligentsia Coffee for $100 million in late October 2015 and Stumptown Coffee Roasters three weeks prior. Peet’s has not disclosed the exact figure for Stumptown but confirmed both deals were part of the same strategic move.

Will Intelligentsia and Stumptown remain independent?

Yes, according to Peet’s, both Intelligentsia and Stumptown will continue to operate independently after their acquisition. Peet’s has also stated it has no plans to acquire additional specialty coffee cafés in the future.

Recommended FrontStreet Beans for Filter Brewing

For fans of Stumptown’s filter-focused approach, try FrontStreet’s BrazilBourbon for its balanced, nutty profile with a soft acidity; the ColombiaSidra offers tropical fruit complexity thanks to its double anaerobic fermentation; and the EthiopiaGedeb presents bright citrus and floral notes ideal for pour-over. All are excellent single-origin choices for manual brewing. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.