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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 xS94uPUzGcxi5LwY7PjI+A==

<SEC-DOCUMENT>0001140361-10-008451.txt : 20100225
<SEC-HEADER>0001140361-10-008451.hdr.sgml : 20100225
<ACCEPTANCE-DATETIME>20100225155445
ACCESSION NUMBER:		0001140361-10-008451
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100223
FILED AS OF DATE:		20100225
DATE AS OF CHANGE:		20100225

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEETS COFFEE & TEA INC
		CENTRAL INDEX KEY:			0000917968
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090]
		IRS NUMBER:				910863396
		STATE OF INCORPORATION:			WA

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 12509
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94712
		BUSINESS PHONE:		5105942100

	MAIL ADDRESS:	
		STREET 1:		PO BOX 12509
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94712

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sartain Elizabeth P
		CENTRAL INDEX KEY:			0001091943

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-32233
		FILM NUMBER:		10633552

	MAIL ADDRESS:	
		STREET 1:		C/O PEETS COFFEE & TEA
		STREET 2:		1400 PARK AVENUE
		CITY:			EMERYVILLE
		STATE:			CA
		ZIP:			94608

	FORMER NAME:	
		FORMER CONFORMED NAME:	SARTAIN ELIZABETH P /TX
		DATE OF NAME CHANGE:	19990728
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2010-02-23</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000917968</issuerCik>
        <issuerName>PEETS COFFEE &amp; TEA INC</issuerName>
        <issuerTradingSymbol>PEET</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001091943</rptOwnerCik>
            <rptOwnerName>Sartain Elizabeth P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>PEET'S COFFEE &amp; TEA, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>1400 PARK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>EMERYVILLE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94608</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2010-02-23</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>36.662</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes></footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Robin Riske, Attorney-in-fact for Elizabeth Sartain</signatureName>
        <signatureDate>2010-02-25</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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