|Mighty Leaf Tea makes artisanal teas and creative blends in a compostable mesh pouch.|
EMERYVILLE, CALIF. — Peet’s Coffee & Tea, Inc. has acquired Mighty Leaf Tea, a San Rafael, Calif.-based producer of specialty teas for food service, in a partnership with private investment firm Next World Group. Financial terms were not disclosed.
Founded in 1996, Mighty Leaf Tea makes artisanal teas and creative blends in a compostable mesh pouch. The brand will continue to operate independently with full access to Peet’s resources, capabilities and scale. Peet’s will continue to make and market its own signature tea brand for food service and retail channels.
San Francisco-based Next World Group, which has a portfolio of mid-size consumer specialty food and beverage companies, will hold a minority stake in the partnership.
Peet’s is in the midst of its biggest U.S. retail coffee shop expansion, with nearly 60 new stores set to open by the end of this year. A recently launched contemporary store design and an expanded presence in the single-serve category with Peet’s K-Cup packs have further positioned the company for growth. The acquisition of Mighty Leaf Tea extends Peet’s presence in the growing premium tea market.
“We’re excited to add Mighty Leaf Tea to the Peet’s family as we’re both Bay Area companies with core values built on the highest standards of quality and deep commitment to craft; it’s a natural, complementary fit,” said Dave Burwick, president and chief executive officer of Peet’s Coffee & Tea. “Mighty Leaf is a fantastic premium brand, known for its artisan teas and signature hand-designed mesh tea pouch; their addition to our existing tea business enables us to further strengthen and accelerate our growth in this market.”
With a proprietary handcrafted manufacturing process and distinctive packaging, Mighty Leaf Tea offers among a range of blends several organic varieties, including spring jasmine, African nectar and detox infusion.“This is an important step in Mighty Leaf Tea’s journey, and we’re excited to take our brand to the next level with Peet’s Coffee & Tea,” said Gary Shinner, co-founder of Mighty Leaf Tea. “This is a win for both Mighty Leaf and Peet’s as we both share a dedication to premium quality and craft mastery that will become even stronger together.”