Minnesota Coffee Chain Caribou Coffee May Be Up for Sale, Reuters Reports

Photo byCaribou Coffee

In a surprising development for the Minnesota business landscape, Caribou Coffee, a beloved local coffee chain, may soon be changing hands.

According to a recent report by Reuters, Panera Brands is exploring the possibility of selling Caribou Coffee along with several bagel chains, including Einstein Bros Bagels.

Potential Billion-Dollar Deal in the Making

The potential sale, which could value the combined coffee and bagel businesses at over $1.5 billion, marks a significant shift in strategy for Panera Brands.

The company, backed by private equity firm JAB Holding, has reportedly enlisted Bank of America to oversee the sale process.

Sources familiar with the matter, who spoke to Reuters on condition of anonymity, revealed that both restaurant operators and private equity firms have expressed interest in acquiring these assets.

Minnesota's Homegrown Success Story

Caribou Coffee, founded in Edina, Minnesota, in 1992, has grown from a single coffeehouse to a global brand with over 800 locations across 11 countries.

The potential sale of this Minnesota-born company could have far-reaching implications for the local economy and the broader coffee industry.

Reversal of Previous Strategy

This move represents a departure from JAB Holding's previous strategy. In 2021, the Luxembourg-based company had combined Panera Bread, Caribou Coffee, and several bagel brands into the Panera Brands group.

The current exploration of a sale suggests a reevaluation of this consolidation approach.

What's Next for Caribou Coffee?

While the outcome of this potential sale remains uncertain, it's clear that Caribou Coffee's future could be entering a new chapter. As a staple of Minnesota's coffee culture, many local consumers and employees will be watching these developments with keen interest.

It's important to note that Panera Brands, JAB Holding, and Bank of America have all declined to comment on the report, as stated by Reuters. As this story continues to unfold, more details may emerge about the potential buyers and the implications for Caribou Coffee's operations and brand identity.

For now, coffee lovers in Minnesota and beyond can continue to enjoy their favorite Caribou brews, even as the company's ownership may be poised for change.