The Luxembourg-based private equity giant JAB grabs yet another chunk of the breakfast day part. Minnesota-based JAB subsidiary Caribou Coffee acquired Bruegger's Bagels from Le Duff, the parent company of La Madeleine French Bakery & Café.
For JAB, it’s yet another addition to its massive coffee and breakfast empire that includes Panera, Krispy Kreme, Caribou and Peet’s Coffee and Tea—which controls Intelligentsia Coffee, Mighty Leaf Tea and Stumptown Coffee Roasters.
The $200 million in annual revenue at Bruegger's means JAB now controls $7.2 billion in U.S. sales alone. That doesn’t include the wide range of consumer packaged goods that surround each brand or the wide range of coffee pods sold under JAB-controlled Keurig Green Mountain. Bruegger’s also offers 268 more locations for those retail products.
It’s another step toward JAB’s desire to be the "Budweiser of coffee," as analyst Pablo Zuanic at Susquehanna International said when the group bought Keurig.
The empire now accounts for one-third the sales of Starbucks, which sees annual sales of $21.3 billion and more than 24,000 locations.
Where the Luxembourg investment vehicle owned by the German billionaire Reimann family looks for its next acquisition is anyone’s guess. The secretive group said it was moving away from its traditional luxury investments, putting shoemaker Jimmy Choo up for sale in a "strategic decision" to pursue further investments in food and beverage.