Dutch Bros Coffee Secures Investment From TSG Consumer Partners
FOR IMMEDIATE RELEASE
Grants Pass, Ore./San Francisco (Oct. 1, 2018) – Dutch Bros Coffee, the country’s largest privately held drive-thru coffee company, and TSG Consumer Partners (“TSG”), a leading private equity firm focused exclusively on the branded consumer sector, today announced that TSG has acquired a minority stake in Dutch Bros Coffee. Financial terms of the transaction were not disclosed.
The partnership will enable Dutch Bros to expand its unique brand and Dutch Luv culture to new markets, leveraging TSG’s expertise and resources. Dutch Bros hopes to grow to 800 shops in five years, continue attracting key talent, employ innovative technology to improve the quality of service, use business intelligence and data to advance operations, and execute a disciplined brand strategy.
Travis Boersma, co-founder and CEO of Dutch Bros Coffee said, “TSG understands the vision of Dutch Bros and values our unique company culture and dedication to our people, customers and local communities. We’re continuing to invest in our people first, helping those who are determined and hungry design their lives and live their dreams. We have set ambitious growth and expansion goals, and we trust TSG to help us build on this momentum in the most strategic way possible.”
Blythe Jack, Managing Director at TSG, said “Dutch Bros. has an exceptional history of fostering deep connections with its customers, which has proven instrumental to its rapid growth and success as the country’s largest, privately held drive-thru coffee company. We are thrilled to partner with the management team, and look forward to maintaining the company’s strong heritage and truly unique culture while executing on key growth drivers, and ‘spreading the Dutch Luv’ as Dutch Bros. enters its next stage of expansion.”
Boersma added, “Our goals, mission and core values remain the same. TSG is the fuel to the fire, providing us with the intellectual capital, experience and expertise needed for Dutch Bros to continue to create memorable experiences and make a massive difference in people’s lives.”
Chuck Esserman, CEO and Founder of TSG, added, “Dutch Bros. is an innovative, founder-led brand backed by an intensely loyal customer following. We are pleased to leverage our deep consumer brand expertise to help support the company’s long-term growth ambitions and are excited to help the business continue to deliver its compelling value proposition to even more consumers over the coming years.”
Travis Boersma founded Dutch Bros in his hometown of Grants Pass, Oregon in 1992 with his late brother Dane. The brothers grew up working at the family’s dairy farm, but due to industry changes were pressed to sell their cows, so decided to leap into the coffee trend brewing in the Pacific Northwest. They started with 100 pounds of beans, a double-head espresso machine, and a pushcart by the railroad tracks dispensing as many free samples as possible. By 1996, Dutch Bros had six locations and welcomed its first franchisee in 1998. In 2005, Dane was diagnosed with Lou Gehrig’s Disease and passed away in 2009, creating an undeniable void for Travis and the Dutch Bros family.
Today, Travis regularly calls on the wisdom imparted by Dane, believing that Dutch Bros is a part of each community it calls home and encourages all employees to be a positive force for good. Over the past 26 years, the company has grown to a seven-state empire with more than 300 locations, employing over 9,000 people and donating more than $5.8 million annually to nonprofit organizations and local charities.
About Dutch Bros
Dutch Bros Coffee is the country’s largest privately held drive-thru coffee company, with more than 300 locations and 9,000 employees in seven states. The company is headquartered in Grants Pass, Oregon, where it was founded in 1992 by Dane and Travis Boersma. Dutch Bros serves specialty coffee, smoothies, freezes, teas, a private-label Dutch Bros Blue Rebel energy drink and nitrogen-infused cold brew coffee. Its rich, proprietary coffee blend is handcrafted from start to finish. In addition to its mission of speed, quality and service, Dutch Bros is committed to giving back to the communities it serves. Through its Love Abounds Foundation and local franchisees, Dutch Bros donates more than $5.8 million each year to causes across the country. To learn more about Dutch Bros, visit www.dutchbros.com.
About TSG Consumer Partners
TSG Consumer Partners LLC is a leading private equity firm focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Duckhorn Wine Company, Planet Fitness, IT Cosmetics, REVOLVE, HUDA Beauty, BrewDog, Canyon Bicycles, Pabst, Backcountry, vitaminwater, thinkThin, popchips, Stumptown, Smashbox Cosmetics and e.l.f. Cosmetics. For more information, please visit www.tsgconsumer.com.