Peet’s Coffee Drops Non-Dairy Surcharge Amid Growing Consumer Demand

Peet’s Coffee has announced it will eliminate its $0.80 surcharge for non-dairy milk alternatives across its 280 U.S. locations starting June 2025. This move follows increasing consumer pressure and advocacy from campaign groups, including PETA, which launched a campaign backed by Sir Paul McCartney urging the coffee chain to drop the extra fee.

Peet’s, known for its specialty coffee, currently offers oat, almond, and pea-based dairy alternatives from brands like Califia Farms, Chobani, and Ripple. With over 20% of its beverages customized with non-dairy options, the company makes plant-based choices more accessible to its customers.

"We were proud to introduce the first fully plant-based menu item at scale in 2021. Now, we’re taking the next step by offering non-dairy options at the same price as traditional milk," said Gordon Bitter, Senior VP of Retail at Peet’s Coffee.

The decision aligns Peet’s with Starbucks, Dunkin’, Dutch Bros, and Scooter’s Coffee, which have all removed similar surcharges recently. Other brands like Tim Hortons, Gregorys Coffee, and Alfred have followed suit in 2025. Founded in 1966, Peet’s has a strong track record in sustainability, from opening the first LEED Gold Certified roastery to sourcing coffee responsibly under Enveritas standards.