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From Beans to Billionaires: How Alfred Peet Brewed the Starbucks Empire

Before Starbucks took over the world, its founders had a secret weapon—Alfred Peet. Discover how one man’s coffee obsession shaped the future of specialty coffee.

I was sitting down with a fellow coffee lover with roots in the beloved coffee community and I learned that Peet’s Coffee had an integral role in the start of Starbucks. You’d think that Coffee McGregger and I would have stumbled across this fun fact 85 episodes ago, but no where in our coffee reviewing journey did we ever come across this story.

In a recent trip to San Francisco to visit family I saw a Peet’s Coffee. I know I'd heard of it before, but wasn’t sure why I hadn’t seen it much in Vegas. Doing a quick search back in town pointed out there’s just 1 location in Vegas and almost as far west as you can go in town. Growing up in Vegas’ glorious east side, I would have never ventured out that far to see this spot. Now I need to make a special trip. Details and story below.

How One Man’s Passion for Coffee Shaped the Future: Alfred Peet & the Birth of Starbucks

In the late 1960s, a quiet revolution was brewing in the United States—one that would forever change the way Americans experienced coffee. And at the heart of it all? A man named Alfred Peet, whose passion for quality coffee not only ignited a movement but also mentored the founders of what would become the world’s most recognized coffee brand: Starbucks.

Source: Peet’s Coffee

Source: Peet’s Coffee

The Birth of a Coffee Revolutionary

Alfred Peet was not just a coffee roaster; he was a man on a mission. Born in the Netherlands in 1920, Peet grew up surrounded by the rich traditions of European coffee culture. After working in the tea and coffee trade across Indonesia and New Zealand, he landed in the United States and was shocked by what passed for coffee. The weak, mass-produced brews lacked the depth, flavor, and craftsmanship he had come to appreciate. He knew he had to change that.

In 1966, Peet opened his first coffee shop—Peet’s Coffee & Tea—in Berkeley, California. But this wasn’t just a café; it was a temple to high-quality, dark-roasted beans, sourced with care and roasted to perfection. Peet introduced his customers to the idea that coffee could be an experience, not just a beverage.

You can relate to this when you go out to dinner or someone’s house that doesn’t splurge on good coffee. Pre-ground, scooped into a drip machine and 10-12 cups of water poured into a reservoir. It’s not terrible. It’s drinkable coffee, but the flavor just isn’t there.

The Starbucks Connection

Around the same time, three enterprising men—Jerry Baldwin, Gordon Bowker, and Zev Siegl—were looking to start a coffee business in Seattle. Inspired by Peet’s commitment to quality, they sought him out, eager to learn from the master himself.

Peet, seeing their enthusiasm, didn’t just teach them about roasting; he instilled in them a philosophy. Coffee wasn’t just about selling a product—it was about craftsmanship, about understanding the journey from bean to cup, and about honoring the growers who cultivated the coffee.

Under Peet’s guidance, the trio learned the art of sourcing and roasting high-quality beans. So inspired were they that in 1971, when they opened the first Starbucks store in Seattle’s Pike Place Market, they sold only whole beans—roasted by none other than Alfred Peet himself. For their first year in business, all of Starbucks’ coffee was supplied by Peet’s.

A Legacy in Every Cup

While Starbucks eventually grew into a global empire, its DNA can be traced back to the lessons learned from Alfred Peet. His commitment to dark roasts, fresh beans, and a deep respect for the craft laid the foundation for what would become the specialty coffee movement in America.

Peet’s influence didn’t stop at Starbucks. He mentored countless roasters and coffee professionals, many of whom went on to shape the modern third-wave coffee scene. His relentless pursuit of quality sparked a nationwide shift in how coffee was sourced, roasted, and enjoyed.

First Wave: The coffee your grandparents bought in giant tubs. Consumed because their parents did it before them.

Second Wave: Big box, branded stores selling coffee and other coffee inspired drinks. We still say a Frappuccino isn’t coffee, it’s a milkshake with a shot of espresso in it.

Third Wave: Independant coffee roasters sourcing their own coffee and experimenting in small batch roasting to emphasize tasting notes from different origins around the globe. Coffee McGregger and I have tasted 80+ independent coffee roasters best offerings on the Just the Drip Podcast. Hands down, this is the best way to experience & enjoy coffee.

The Coffee Revolution Lives On

Today, whether you sip a cup of Peet’s Coffee or a Starbucks brew, you’re experiencing the ripple effect of one man’s vision. Alfred Peet didn’t just teach people how to roast coffee—he taught them how to respect it, to savor it, and to share that passion with the world.

Definitely have a new found respect for the coffee we’ve been consuming for the last 4-5 years. It would have been awesome to be around Mr Peet when he was experimenting with new coffee roasting and brewing methods. Something tells me an episode of JTD interviewing “the man who turned America into a nation of coffee lovers, one roast at a time” would have crushed the view count.

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