Part of its expansion efforts are based around brand-building in the US. The company signed a deal earlier this year with grocery giant Supervalu Inc. to carry products in 215 of its Shaw's and Star Markets in the New England area. So far, Peet's only has six stores in the Boston area, which are part of the 18 it has outside of the California market.

"The longer term opportunity for us is clearly there," says Patrick O'Dea, president and chief executive officer of Peet's. "Our share nationally is still tiny." Starbucks, the segment leader, operates 12,000 units worldwide and has plans next year to open 1,700 in the US alone.

During the quarter which ended July 2, Peet's retail revenue jumped 17.5%, to $33.6 million. Hot weather in California during the period hampered the sale of traditional coffee drinks, but a new line of frozen beverages helped fuel sales growth, executives say.