Peet's Coffee part of $7.5M investment in Revive Kombucha
- Peet’s Coffee was part of a $7.5 million Series B round of funding for Revive Kombucha, according to a company press release.
- The new funding will allow the kombucha company to grow its brewery operations, scale its team and expand its national distribution. Through the partnership, Revive kombucha will be delivered in California through Coldcraft, Peet’s Coffee’s chilled direct-store-delivery network.
- “We are delighted to partner with Revive Kombucha, a company that shares a similar handcrafted approach to Peet’s Coffee,” said Eric Lauterbach, chairman of Coldcraft and president of consumer at Peet’s Coffee. “Our investment reflects our belief in the strength and promise of the Revive brand and our own mission to build an outstanding portfolio with multi-channel reach. In so doing, we will enable Revive to better engage with its customers and accelerate its business.”
Kombucha, a fermented tea drink, has had a meteoric rise to popularity in recent years. No longer just a drink for a niche consumer, the kombucha market increased nearly 41% to $534 million wholesale last year. It’s also predicted that revenue will jump to $1.8 billion by 2020, making this more than a passing trend. A growing number of beverage giants are taking notice and investing in this popular drink.
Peet’s Coffee, whose owner JAB Holding controls Keurig, Panera Bread, Krispy Kreme and Caribou Coffee, among others, is not the first beverage behemoth to sink capital in kombucha. PepsiCo recently announced it was acquiring KeVita, a producer of fermented probiotic and kombucha beverages.
CAVU Venture Partners, which invests in better-for-you food and beverage companies, completed a $7 million Series B investment in kombucha maker Health-Ade in March 2016. As these investments show, the fermented drink is a category where beverage companies and investors want to be.
Kombucha is steadily gaining popularity among consumers, especially those who perceive the drink to have health benefits.
Peet’s Coffee, which already has a number of beverage companies under its umbrella, gets certain perks by investing in Revive. It keeps Peet’s relevant to health-focused consumers who are looking for alternatives to soda and plain water. It also expands Revive Kombucha's delivery reach in California, in particular. By using Peet's chilled distribution network, the company will deliver Revive Kombucha to more than 1,600 food service, grocery and Peet’s coffeebar locations.
This investment by Peet’s Coffee appears to be mutually beneficial for both companies. Revive will be able to expand their brewing operations and national distribution, which may give them an early edge as kombucha sales continue to heat up. Peet’s Coffee also now has a vested interest in a powerful developing beverage market. Expect to see more kombucha start-ups entering this increasingly competitive field as the drink's popularity doesn’t appear to be waning anytime soon.