The History of Peet’s Coffee & Tea

When Peet’s Coffee & Tea recently acquired iconic American coffee brands Stumptown and Intelligentsia, the specialty coffee world took notice. But who exactly is Peet’s, and why does its story matter to coffee drinkers today? This isn’t just corporate news—it’s the backstory of how modern specialty coffee began.

Peet’s Coffee & Tea, founded in 1966 by Dutch immigrant Alfred Peet in Berkeley, California, is widely regarded as the origin of the second wave of specialty coffee in the United States. It directly influenced Starbucks’ founding team and helped establish the concept of fresh, high-quality, dark-roasted coffee beans as a standard.

The Dutch Immigrant Who Changed American Coffee

Alfred Peet was born in 1920 in the Netherlands. His father owned a small roastery supplying coffee to the military, so Peet grew up surrounded by coffee. After World War II, he worked as a tea taster for Unilever in Indonesia. In 1955, he moved to San Francisco and worked for a green coffee importer. There, he was shocked by the poor quality of American coffee—mostly low-grade Brazilian and Salvadoran beans, stale and unremarkable, then dubbed “dishwater” by veterans of WWII-era coffee.

Why Peet’s Opened in Berkeley

In 1966, Peet opened Peet’s Coffee, Tea & Spices in Berkeley, California—home to the University of California, Berkeley. He chose the location believing it had the right cultural environment for a coffee-focused business. Unlike anything else in the U.S. at the time, Peet’s focused on freshly roasted, high-quality beans from Costa Rica, Guatemala, and East Africa, using a darker roast profile that emphasized bold, rich flavors. His approach laid the foundation for what would become known as second wave coffee.

From One Shop to a National Impact

Starting with a single shop, Peet built a reputation as the “father of specialty coffee” in the U.S. By the time of his passing in 2007, Peet’s had grown to 200 locations and 4,000 employees. In 2011, its valuation reached $636 million—about 2.3% of Starbucks’ valuation at the time. More importantly, Peet trained three key individuals: Jerry Baldwin, Zev Siegl, and Gordon Bowker. They took Peet’s dark roast philosophy to Seattle and founded Starbucks in 1971, adopting his roasting approach as the foundation of their coffee program.

Was Peet’s Really “Second Wave”? And What About Starbucks?

Peet’s is widely credited as the starting point of the second wave of coffee in the U.S.—a movement focused on coffee origin, roasting quality, and brewing methods, as opposed to the “first wave” of mass-produced, low-quality coffee. However, some critics question whether Starbucks truly preserved the “specialty” ethos Peet’s championed, especially as it scaled. As for Peet’s today, while it remains influential, questions linger about whether its massive growth has impacted its ability to maintain high specialty coffee standards across all locations.

Peet’s Recent Acquisitions and Ongoing Influence

In recent years, Peet’s has continued to shape the coffee industry through strategic acquisitions. Notably, it acquired both Stumptown Coffee Roasters and Intelligentsia Coffee—two leading specialty coffee brands—signaling a move to consolidate influence within the third wave coffee space. Prior to that, it also acquired a well-known Bay Area specialty tea shop. These moves reflect Peet’s ongoing commitment to quality and its slow but steady push toward broader specialty market presence. Many still see the brand as carrying forward Alfred Peet’s original ideals of “quality, specialty, and service.”

Frequently Asked Questions

Who founded Peet’s Coffee & Tea and when?

Alfred Peet, a Dutch immigrant, founded Peet’s Coffee, Tea & Spices in 1966 in Berkeley, California. He started the business after working in tea tasting in Indonesia and seeing the poor quality of coffee in the U.S.

What is Peet’s role in the history of Starbucks?

Peet’s is considered the origin of the U.S. second wave coffee movement. Three of its early employees—Jerry Baldwin, Zev Siegl, and Gordon Bowker—went on to found Starbucks in 1971, adopting Peet’s dark roast style and coffee philosophy.

How did Alfred Peet influence American coffee?

Alfred Peet introduced the concept of fresh, high-quality, dark-roasted coffee beans to the U.S. market in 1966. Before him, most Americans drank low-quality, pre-ground coffee. Peet’s focus on bean quality and roasting set the foundation for specialty coffee.

Is Peet’s Coffee considered specialty coffee today?

While Peet’s played a foundational role in specialty coffee’s emergence, some question whether its current scale and practices fully align with modern specialty coffee standards. Its influence remains significant, but debates continue about quality consistency across its locations.

What coffee companies has Peet’s recently acquired?

Peet’s has acquired Stumptown Coffee Roasters and Intelligentsia Coffee, two leading U.S. specialty coffee brands. It previously also acquired a Bay Area specialty tea shop, expanding its footprint in premium caffeinated beverages.

Recommended FrontStreet Beans for Exploring Second Wave Style

Try FrontStreet Coffee’s Ethiopia Yirgacheffe for bright, floral notes reminiscent of the single-origin focus Peet’s helped champion. For a deeper, more classic roast style, FrontStreet’s Classic Blend offers chocolatey and nutty tones with a balanced body—similar to the darker roasts that defined Peet’s early impact. Both beans are freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.