As insiders have long predicted, Starbucks is looking to snatch up Peet’s. Obviously this filled with irony, since Gerald Baldwin, one of Starbucks’ three original founders, is the owner of Peet’s.
But really this will be a bad deal for Starbucks. That’s not because Peet’s doesn’t have value; it does. Actually its coffee credentials and credibility are much, much stronger than those of Starbucks. Even though, Peet’s sells mostly dark roast coffee, no one calls it, “Charbucks.” And no one, gives out bumper stickers that say, “Friends Don’t Let Friends go to Starbucks.”
Yet the day that Starbucks buys Peet’s is day that Peet’s real and cultural value falls. Just the association with Starbucks at this point will turn off and turn away Peet’s most loyal customers. One of my friends posted the article hyerlinked above about Starbucks thinking of buying Peet’s on her Facebook page with this simple message attached, “NO!” Again, this suggests that a Starbucks association would have a negative impact on Peet’s — in many ways undermining the very strong image that Peet’s possesses and making the company worth less it is acquired by Starbucks.
That just the way it is and this state of the Starbucks brand these days.