What does it take to transition a small but growing publically-traded business into a rapidly growing privately-held business?
That’s a good question, and one that the folks at Peet’s Coffee & Tea is more than capable and willing to discuss. Peet’s went through this process, and came out a winner. Founded in 1966, Peet’s went through an IPO in 2002. The business continued to grow, though not as fast as possible, until 2012, when it was taken off the public market and bought by private investment firm JAB Holding Company for just shy of $1 billion.
Peet’s Coffee has four different business units, which they refer to as ‘channels’ of business. These include their retail stores, CPG (or consumer packaged coffees for sale in grocery stores and supermarkets), a web-based home delivery service, and wholesale outlets (licensed partners which operate in places like airports). The wholesale business also includes an office coffee and tea supply business.
According to Adolfo Romero, Senior Manager and Corporate FP&A for Peet’s, there were three parts to the finance transformation: transformation of the business processes for scalability, transformation of the technical tools used for analytics and forecasting, and transformation of the people on board to support the growth JAB proposed for Peet’s Coffee. Here is how each part of the transformation worked.
Finance Transformation Through Better Business Processes
With the right processes, tools, and people in place, Peet’s could grow their coffee and tea business without sacrificing the service and quality that their devoted Peetniks have come to expect.
In order to grow a business rapidly and successfully, the business process has to be efficient. This means simplifying the work, streamlining the processes, and implementing structured and standardized processes where there were none before. This allows for more work to be done easier, faster, and with minimal staffing, so as to maximize profits without sacrificing the speed and quality of customer service.
Finance Transformation Through the Acquisition of Better Tools
Before the transfer from public to private, Peet’s Coffee depended on old, outdated software systems and Excel spreadsheets for reporting purposes. The company desperately needed to modernize with a faster system that would support better decision making. Of all the options available, Peet’s Coffee selected Planful Cloud EPM Suite. This tool allowed them to get access to data quickly and to have more confidence in the accuracy of the data. Better data and analysis allowed the finance team to provide better recommendations to their leadership, which was a huge factor in Peet’s inevitable success.
Finance Transformation Through the Acquisition of the Right People
The tools and processes aren’t worth much without the right people in the right places to use them to their full potential.
Tools and processes are nothing without the right people. One of the most important parts of Peet’s transformation from public to private company was getting the right people with the right backgrounds into the right positions. With these teams in place, they could focus on the most high-value work. The right head count helps support profitable growth.
With the right processes, tools, and people in place, Peet’s Coffee & Tea has developed a devoted following of customers, lovingly called ‘Peetniks’. Headquartered in the San Francisco Bay area, lovers of Peet’s uniquely roasted coffee are scattered far and wide across the United States.
For more on how Planful Cloud EPM Suite has helped Peet’s Coffee transform Finance, listen to this webinar replay. This is your free gift from Planful, your catalyst for business intelligence and strong, healthy growth.
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