U.S. coffee giant Peet's Coffee announced the acquisition of Mighty Leaf Tea, a renowned American specialty tea brand, in a deal worth 85 million US dollars.
The acquisition focuses on expanding Peet's Coffee's premium tea portfolio, with a particular emphasis on Mighty Leaf's organic green tea, cold brew green tea, and flavored green tea products.
Mighty Leaf Tea has long been recognized for its high-quality loose-leaf green tea and innovative flavor combinations, such as jasmine green tea and matcha latte mixes, which are popular among American middle and high-end consumers.
Peet's Coffee plans to integrate Mighty Leaf's green tea products into its 2,000+ offline stores and online sales channels, aiming to capture a larger share of the U.S. premium green tea market, which is growing at a CAGR of 9.2%.
This move reflects the increasing integration of coffee and tea markets and the rising demand for premium green tea in the U.S.
