On the Line: Peet's Coffee CEO Patrick O'Dea
Banc of America downgraded Starbucks to “sell” because of slowing growth, but Peet’s Coffee and Tea CEO Patrick O’Dea said his company isn’t struggling with that problem.
O’Dea, who also serves as president, told Cramer via phone that Peet’s is “without a doubt” a growth company. It’s true that Peet’s has a boutique approach to coffee selling – selectively buying beans from around the world and artisan roasting them in small batches – but the whole business was set up in order to scale that process, O’Dea said, adding that Peet’s just built a $30 million roasting facility this year.
According to O’Dea, Peet’s is growing at about 20% a year, so it’s a mistake to sell the stock on the weakness of Starbucks, Cramer said. “I think Peet’s is a buy.”
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