The modern globalized world often has customers who attempt to understand the political and ethical implications of the products they purchase. The issue of the alignment of specific businesses with specific countries or policies, especially in highly contentious geopolitical regions, arises in international politics and business. On this note, Peet Coffee, which is a renowned specialty coffee shop, has attracted a certain level of attention owing to questions that have been raised as to whether it supports or takes a stand on Israel.
Through the examination of corporate relationships, proclamations of Peet Coffee, sourcing policies, and the context of consumer activity over Israel as a whole, this site aims to examine this matter extensively. The aim is to bust the myths, give factual information, and offer a balanced approach to the issue of how companies operate in an ethical and political environment.
Corporate background of Peet’s Coffee
Peet Coffee was founded in 1966 by a Dutch immigrant who loved an Arabica coffee that was roasted darkly, Alfred Peet, in Berkeley, California. The introduction of Peet marked a revolution of specialty coffee in the US as it was dominated then by the mass-produced, poorly quality brands. The company grew slowly and predominantly in Northern California and established the second location in Menlo Park in 1971.
The strategy of Peet was different because it promoted home brewing using quality fresh beans and emphasized more on selling whole roasted beans rather than cups of brewed coffee. Interestingly, in 1971, three businessmen (Jerry Baldwin, Zev Siegel, and Gordon Bowker) trained under Alfred Peet, and then started Starbucks, beginning with their coffee beans purchased from Peet.
Once the commercial holdings of Peet were finally sold, the company continued to expand, including more retail outlets, larger roasting plants, and an expanded national presence. During the years of development and acquisition, Peet Coffee has outgrown its starting point and become part of the JAB Holding Company, which is an important international coffee and beverage investment corporation.
Correlation between Peet and Coffee and Israel
Due to political affiliation and other charitable activities of its parent company, Peet Coffee has been accused of indirectly funding Israel due to the same affiliation.
Not an Israeli company, Peet Coffee is an international company with headquarters in both the United States and the Netherlands. The company does not publicly advertise its direct business relations or specific activities in Israel, even though it has global activity. Peet has established its stores in the Middle East, including the Dubai Mall, in the United Arab Emirates, but its growth is business-oriented rather than politically oriented. Instead of a specific corporate policy or business practice of the support of Israel specifically by Peet’s Coffee, the association is more owed to the pro-Israel position of the Reimann family and the ownership of the company by JAB Holding.
Peet’s Coffee’s sourcing and business practices
Peet Coffee is more than concerned about the ethical and responsible purchase of coffee beans. Third-party verification indicates that the company has already achieved its objective of sourcing all its green coffee in a responsible way by the year 2025. The primary objective of this responsible sourcing strategy is to support small-scale farmers working towards sustainable practices, as well as advanced certified farms. Peet collaborates with Enveritas, an independent nonprofit that performs audits on farms according to various criteria of sustainability, including social, economic, and environmental. Under these audits, Peet can ensure coffee is produced without cutting trees, using child labor, or any other harmful methods. The joint venture allows Peet to gain hands-on experience and reach the farm level in over 20 countries where coffee is grown.
Since coffee farming up to retail, it is evident that Peet has tight control over the supply chain operations. Hand-roasting coffee beans in small batches, packing them into special bags that keep them fresh, and shipping within 24 to 48 hours of roasting, this is the case at its production plant in California. Peet also adopts the direct store delivery (DSD) model, where it owns the warehouses and is in control of delivery in order to ensure that the freshest products reach its 200+ stores. Peet also invests in community development projects in coffee-producing regions as part of its Direct Trade program, in cooperation with farmers to advance quality and livelihoods.
Political contributions and lobbying efforts
The Coffee of Peet does not engage in huge contributions or lobbying activities by itself. However, JAB Holding Corporation, which is the parent company of JDE Peet, undertakes a certain amount of lobbying and political donations. According to statistics followed by OpenSecrets, JAB Holding donated over $100,000 in political donations to the 2024 cycle in the United States, mostly to Democrats, but some Republicans as well. In 2024, the corporation also had approximately $260,000 in lobbying, but the publicly available documents do not identify any lobbying efforts in relation to Israel-related politics or Middle East politics. It is not proven that Peet Coffee, as a company or brand, takes part in Israeli politics lobbying.
Coffee industry and geopolitical issues
The issues affecting the global coffee supply chain include trade problems due to the protectionist policies, which include tariffs raised by the United States in the current political environment. To avoid tariffs and exploit the growing markets as a way of saving costs, companies such as the JAB Holdings, the owner of the Peet Coffee, are adapting by relocating manufacturing to regions like Southeast Asia.
Climate change is an existential threat to coffee farming. The specialty coffee industry,
therefore, finds itself in a dangerous period with such tactical changes as expanding sourcing areas, investing in supply chain transparency-related innovations like blockchain, and reinforcing its direct ties with farmers in politically stable nations. These responses aim at the maintenance of quality and sustainability promises in the face of minimizing risks of global turmoil.
Consumer activism and the Boycott, Divestment, Sanctions (BDS) movement
BDS has significantly influenced consumer activism all over the world in recent years, especially in the coffee industry.
Coffee companies such as Starbucks and McDonald’s have become the most popular boycott targets among customers, who believe that they are supporting Israel via the franchise system, investments, or even political statements they make. After its workers’ union announced its support for Palestine in the Gaza conflict, Starbucks specifically became the focus of further boycott calls.
Additional outrage among customers was due to the legal actions adopted by the company against the union, which implicated the labor rights in geopolitical advocacy. These boycotts have supposedly led to measurable declines in stock prices and sales, which have shown the financial effect that consumer pressure can have on companies.
The BDS movement advocates boycotting rather than boycotting in general, but focusing on businesses that have a direct relationship to Israeli policy, and not those with indirect or peripheral relationships. Peet coffee has not been the primary focus of such campaigns, but has been included at times in the lists due to its ownership relationship with JAB Holding, which is politically affiliated with Israel. An example of consumer activism that has incorporated a platform of morality and protest through purchases is boycott campaigns. By not spending with brands, customers are considered to be complicit; they can exert economic pressure on companies and thus the political agendas. These movements are also manifested by increasing calls on corporations to be responsible for morality and geopolitical issues.
Activists and boycott groups, however, highlight the fact that Peet is obliquely linked to Israel due to the fact that it is owned by JAB Holding Company, which is run by the Reimann family that has a track record of investing and contributing to Israel. Although Peet appears to have no political support of his own, some activist groups take advantage of this indirect connection to call boycotts.
