Peet’s Coffee on Thursday said that it bought a majority stake in kombucha maker Revive Kombucha, with promises to bring the company’s drinks to more grocers and its own coffee shops.
Terms of the deal were not disclosed.
Revive offers bottled and on-tap kombucha and has more than doubled in size over the past year. Peet’s said that its financing will enable the brand to grow its operations and increase its distribution through the coffee company’s network.
The Emeryville, Calif.-based Peet’s operates well over 200 coffee shops, mostly out West, and has a considerable retail business inside grocers and its e-commerce platform. The company said that it expects to expand Revive’s market into those channels.
“Kombucha is a natural adjacency to ready-to-drink coffee and our consumers tend to love both,” Eric Lauterbach, president of Peet’s consumer division, said in a statement. “Adapting our growth strategy to extend access and trial of superior beverage choices across channels in new and convenient locations is key.”
The deal continues a trend in which coffee chains are looking to expand into tea and other beverage products. Starbucks, for instance, closed its Teavana shops to focus instead on expanding that brand at grocers and other retail locations as well as its own coffee shops.