Roaster
Tully's Coffee
Seattle, Washington
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Tully's Coffee is an American specialty coffee manufacturing brand owned by Keurig Dr Pepper, which acquired the Tully's brand and wholesale business in 2009. Though the shops are closed, Tully's brand coffee continues to be sold, most commonly as K-Cups.
Show moreTully's Coffee is a coffee roaster from Seattle, WA United States. We have 10 cataloged roasts with 0 total reviews with a score of 0.
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Editor's Overview
Tully's Coffee, established in 1992 by Tom "Tully" O'Keefe in Kent, Washington, has a rich history in the specialty coffee market. O'Keefe's ambition was to create a brand that could rival the rapidly growing Starbucks, offering a unique choice to coffee enthusiasts (Wikipedia).
The company experienced rapid growth in its early years. By 1996, Tully's had expanded to 22 stores, showing a remarkable increase in same-store sales, about 15% higher than the previous year. This expansion was a clear indication of Tully's Coffee's increasing popularity and its ability to secure a niche in the competitive coffee market.
In 1997, Tully's took a significant step by selling its coffee overseas, marking its emergence as an international brand. This global expansion continued in 1998 when Tully's began selling its beans in supermarket chains through a partnership with Brown & Cole. This allowed Tully's to broaden its reach, making its coffee more accessible in various retail outlets, including grocery stores, cafes, and online sales (Zippia; TheCommonsCafe).
In 2009, Tully's Coffee sold its North American wholesale coffee-bean distribution business, brand, and roasting operation to Green Mountain Coffee Roasters, which later became part of Keurig Dr Pepper. The deal was valued at $40.3 million, enabling Tully's to clear its debts, distribute cash to shareholders, and retain substantial cash reserves to expand its retail business. This acquisition was a significant move for Keurig Dr Pepper, adding a well-known coffee brand to its portfolio and strengthening its beverage and coffee market position.
Despite this early success and growth, Tully's Coffee eventually faced a downturn, leading to its closure. The challenges that led to this decline included financial struggles, management issues, and intense competition from larger coffee chains like Starbucks. These factors combined to undermine Tully's Coffee's business, leading to the gradual closure of its stores.
Tully's Coffee, once a notable player in the U.S. coffeehouse market, officially closed its operations in September 2018. This closure resulted from a permanent injunction between Keurig and Global Baristas, the latter being the company that had been operating the Tully's brand. As part of this agreement, Global Baristas was restricted from operating any coffee chain or food or beverage business under the Tully's name. Following this, Keurig continued to sell coffee under the Tully's brand.
The closure of Tully's U.S. coffeehouses was a significant event, marking the end of the brand's physical store presence in the U.S. However, the Tully's brand continued to have an international presence, particularly in Japan. Since 2006, the Tully's brand has been licensed in Japan by Ito En, Inc., and as of April 2022, there were over 760 Tully's coffee houses operating in Japan under this licensing agreement.
The story of Tully's Coffee is a testament to the dynamic nature of the retail coffee industry. It highlights the importance of adaptability, sound management, and the ability to withstand competitive pressures. Despite its initial success and efforts to diversify its presence, Tully's Coffee's challenges ultimately led to its downfall, marking the end of a once-promising player in the specialty coffee market.
The company experienced rapid growth in its early years. By 1996, Tully's had expanded to 22 stores, showing a remarkable increase in same-store sales, about 15% higher than the previous year. This expansion was a clear indication of Tully's Coffee's increasing popularity and its ability to secure a niche in the competitive coffee market.
In 1997, Tully's took a significant step by selling its coffee overseas, marking its emergence as an international brand. This global expansion continued in 1998 when Tully's began selling its beans in supermarket chains through a partnership with Brown & Cole. This allowed Tully's to broaden its reach, making its coffee more accessible in various retail outlets, including grocery stores, cafes, and online sales (Zippia; TheCommonsCafe).
In 2009, Tully's Coffee sold its North American wholesale coffee-bean distribution business, brand, and roasting operation to Green Mountain Coffee Roasters, which later became part of Keurig Dr Pepper. The deal was valued at $40.3 million, enabling Tully's to clear its debts, distribute cash to shareholders, and retain substantial cash reserves to expand its retail business. This acquisition was a significant move for Keurig Dr Pepper, adding a well-known coffee brand to its portfolio and strengthening its beverage and coffee market position.
Despite this early success and growth, Tully's Coffee eventually faced a downturn, leading to its closure. The challenges that led to this decline included financial struggles, management issues, and intense competition from larger coffee chains like Starbucks. These factors combined to undermine Tully's Coffee's business, leading to the gradual closure of its stores.
Tully's Coffee, once a notable player in the U.S. coffeehouse market, officially closed its operations in September 2018. This closure resulted from a permanent injunction between Keurig and Global Baristas, the latter being the company that had been operating the Tully's brand. As part of this agreement, Global Baristas was restricted from operating any coffee chain or food or beverage business under the Tully's name. Following this, Keurig continued to sell coffee under the Tully's brand.
The closure of Tully's U.S. coffeehouses was a significant event, marking the end of the brand's physical store presence in the U.S. However, the Tully's brand continued to have an international presence, particularly in Japan. Since 2006, the Tully's brand has been licensed in Japan by Ito En, Inc., and as of April 2022, there were over 760 Tully's coffee houses operating in Japan under this licensing agreement.
The story of Tully's Coffee is a testament to the dynamic nature of the retail coffee industry. It highlights the importance of adaptability, sound management, and the ability to withstand competitive pressures. Despite its initial success and efforts to diversify its presence, Tully's Coffee's challenges ultimately led to its downfall, marking the end of a once-promising player in the specialty coffee market.
