Back in 1966, disappointed by the poor quality of coffee in the United States, Dutch entrepreneur Alfred Peet opened a specialty coffee shop in Berkeley, California.
This was at a time when most Americans were drinking coffee brewed from beans freeze-dried in a can.
His introduction of specialty grade coffee to the general public proved to be so successful that during subsequent years Peet was often encouraged to expand his business, an idea he rejected time and time again because he wanted to personally supervise the quality of his coffee.
Alfred Peet acted as a mentor to a number of coffee enthusiasts, including Jerry Baldwin, Zev Siegl, and Gordon Bowker, the founders of Starbucks, or George Howell, the founder of The Coffee Connection and the man credited with the invention of the frappucino.
But, you see, even though Peet’s business had all the right ingredients for massive success: an original high-quality product, an ever-increasing demand for that product, and even influence on coffee and food culture itself — specialty food, health food, and other avant-garde restaurants opened around Peet’s initial location, his business never really took off.
Because, quite simply, the marketplace became ultra-competitive incredibly fast.
In 1999, there were 23 blogs on the internet. In 2006, there were close to 50 million blogs available on the web.
Now, there are over half a billion blogs out there.
It took Peet 10 years to acquire a warehouse and start roasting coffee for distribution to restaurants throughout Bay Area.
By that time, there were specialty coffee shops scattered all around the United States.
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