Peet’s Coffee Ends Alternative Milk Surcharge After Lawsuit Dismissal and McCartney Campaign
May 31 - 2025
Coffee Geography Magazine
Peet’s Coffee will eliminate its surcharge for non-dairy milk starting June 4, 2025, aligning the price of plant-based options (oat, almond, and Ripple®) with dairy-based beverages. This decision follows a dismissed class-action lawsuit alleging discrimination under the Americans with Disabilities Act (ADA), as well as a public campaign led by Paul McCartney and PETA.
Earlier this year, a federal judge dismissed claims that Peet’s $0.80 surcharge for non-dairy milk discriminated against lactose-intolerant customers. Judge Jon S. Tigar of the U.S. District Court for Northern California ruled the policy "facially neutral," applying equally to all customers regardless of dietary preferences or restrictions. He emphasized that Peet’s menu neither solely targeted lactose-intolerant patrons nor created separate pricing tiers for identical drinks.
The policy shift comes after sustained pressure from animal rights and environmental advocates. In an open letter to CEO Eric Lauterbach, Paul McCartney highlighted the ecological impact of dairy farming, noting, "Cow’s milk significantly contributes to methane emissions and water waste." He urged Peet’s to follow competitors like Starbucks and Dunkin’—both of which recently eliminated similar surcharges. PETA’s "For Peet’s Sake!" campaign further criticized the fee as "penalizing consumers for choosing dairy-free milks kind to cows and the planet."
Industry-wide, major chains are abandoning non-dairy premiums. Dunkin’ removed its surcharge in March 2025, citing "guest feedback," after defeating a nearly identical ADA lawsuit. Starbucks ended its extra charge last November. Regionally, Bay Area favorites Philz, Blue Bottle, and Dutch Bros do not impose substitution fees. Notably, Stumptown Coffee Roasters—owned by Peet’s parent company JDE Peet’s—offers free oat milk substitutions and even made it the default for milk-based drinks in 2023.
Peet’s, founded in Berkeley in 1966 and now operating globally, confirmed the change on social media: "We’re excited to offer non-dairy options at the same price as milk-based drinks beginning this summer."