Peet's Seeks Coffee Success One Cup at a Time

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Sept. 12 (Bloomberg) -- David Burwick, president and CEO at Peet's Coffee & Tea, discusses the company's entrance into the single-cup coffee market and expanding the brand across the country to the East Coast. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Share back from starbucks and green mountain coffee.

David berwick joins us now.

Why now get into singleserve?

Isn't it a little late?

Share back from starbucks and green mountain coffee.

This category is just beginning.

There is a lot of growth in the category makes up about 25% of the coffee business right now.

It is still in its infancy.

For us, we wanted to make sure we could deliver the best possible coffee that you would expect in one of our stores or out of one of our bags.

We got to that point and now we have been in the market since june and we are happy with our results so far.

We had a heated debate this morning about whether you could capture the same taste and flavor for those coffee aficionados like the pete's fans that prided itself on gourmet, freshly brewed, at new bean coffee in a single cup serving do you worry about compromise?

We do and i think we should and that's why we took five years to get this product exactly right.

We use a special filter that allows the flavors in the oils to get into your coffee so there is more coffee.

We feel a single cup of peet's is as close as you can get to the real thing.

That's why we launched it.

We wanted to wait to make sure that we did not disappoint any of our consumers.

I know you are moving east and expanding to the midwest and to the east coast.

Profit margins at peet's are sometimes higher than starbucks.

When you take over some stores in the midwest, how do you keep the profit margins high?

We actually do pretty well.

This is such a great round which is so well-known and loved on the west coast but one of the greatest stories that has never been told.

As we move east in retail, we want to get a good return on investment but also to build the brand.

We want people to experience peet's coffee and retail store.

You fall in love with pete's coffee when you are in a retail store.

The great unspoken here is the line out the store of an espresso store on madison avenue.

It is packed.

What is the best rectus is you can learn from nestle and their espresso?

We can learn something from how they do retailing.

They have created an incredible store that showcases their product very well.

It is also a pretty good product and the penetration of that machine in the u.s. is very small.

I think they have done a nice job to create an apple-like environment for their store.

I look at that custom thing and the shift -- are the consumers ahead of the marketers and the coffeemakers?

Um, i don't think so.

People like single cup because it is simple and convenient and it's affordable when you consider you are not throwing away coffee.

Is it really cheaper?

I was wrong, yes.

Quacks i ordered my one cup and that adds up.

It depends on what you are buying.

It is $.50 to one dollar if you want to factor in all the coffee you throw away.

It is probably more affordable but more than anything, people think of it as convenient.

There are likely to people in eyeholes -- household than one person wants regular and one person wants decaf and you make one cup each and go.

There are still many people going to stores.

Many people make coffee the way we prefer with a french press.

Good luck in your endeavor.

I thought i would spend more.

This text has been automatically generated. It may not be 100% accurate.


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