A new competitor in the coffee-and-bagel sphere is called, fittingly, ‘Coffee & Bagels.’ The ‘funky neighborhood’ coffee shops are poised to open on a corner near you, from coast to coast. The shops are the brainchild of JAB Holding Co., a European investment firm that has quietly acquired many of the best-known U.S. coffee and food brands in its bid to build its own caffeine empire.
JAB is backed by the Reimann family of Austria. They have put together co-branded restaurants to highlight the brands they own. Coffee & Bagels sells Caribou coffee and bagels from Einstein Bros. JAB has put together quite a profile of brands in a relatively short period of time. In addition to Einstein and Caribou, the company owns Krispy Kreme, Stumptown Coffee Roasters, Peet’s Coffee & Tea, Noah’s Bagels, and Keurig, among others.
In 2013, JAB acquired Minnesota-based Caribou coffee for $340 million. Right after, JAB closed 80 Caribou locations and rebranded another 88 as Peet’s. Caribou has 273 stores, mostly in Minnesota. Last year, JAB spent $13.9 billion to purchase home-brewing coffee company Keurig Green Mountain. Earlier this year, JAB Purchased Krispy Kreme in a transaction worth $1.35 billion. JAB has spent more than $27 billion in acquisitions since 2011.
The Coffee & Bagels chain is a test to see whether JAB can challenge Starbucks. The concept pairs fresh baked goods with a friendly, coffee shop atmosphere. They are intended as community gathering places…
