The term of a granted stock option is 10 years from the grant date. Their primary market is adults, young youths, and teenagers, which could be a major weakness because they would lose their most importantly potential customers. area. Our access to high quality Arabica beans depends on our relationships with coffee brokers, exporters and growers, with whom we have built long-term relationships to ensure a steady supply of coffee beans. We do Complimentary 10 hours free analyst time for market review, 3. Coffee extract provides prolong moisturizing effects and helps to remove suntan. We operate our business through two reportable segments: retail and specialty sales. Third-party deliverers, Postmates and DoorDash, help generate revenue as does its own app. By continued use, you agree to our privacy policy and accept our use of such cookies. shares issued through stock options. attorneys fees, and prejudgment interest. Do not sell my personal infoPrivacy PolicyContact UsRSS, 84 Freddy's Frozen Custard & Steakburgers, 127 On The Border Mexican Grill & Cantina, 132 Fleming's Prime Steakhouse & Wine Bar, 169 Del Frisco's Double Eagle Steak House. In the Weaknesses of Coffee Bean and Tea Leaf, 3. Our roasted coffee that is sold to the end consumer is priced in tiers. Management evaluates segment performance primarily based on revenue and segment operating income. The Arabica beans purchased by us tend to trade on a negotiated basis at a used to manage our operations and increase the productivity of our workforce. Showing its resurgence, it recently debuted a new Coffee Tea & Bean outlet in the thriving Fort Greene area of Brooklyn on August 28, 2020. The specialty coffee market generates most of its sales from coffeehouses that currently number over 25,000 in the United States, The slower growth in whole bean and related products was primarily due to continuing cannibalization of bean sales in retail stores as we increased the availability of Peets coffee in grocery stores and our own new retail From 2001 to 2003, If the original lease term is less than the Companys anticipated rental period, one or more stated option Our stores are designed to facilitate the sale of fresh whole bean coffee and to Moreover, increasing consumption of coffee-flavored beverages and ice cream is expected to fuel demand for these beans over the forecast period. The specialty coffee category is highly competitive and fragmented among various distribution channels. In the foodservice and office business, we have a staff of sales and account managers who make sales calls to potential accounts and conduct quality audits at our existing accounts. Our websites, peets.com and peetscoffee.com offer several customer-centered functions. Light & Subtle, Light & Distinctive, Medium & Smooth, Dark & Distinctive, Decaffeinated, Flavored, and Reserve are the 7 categories of coffees offered by the company. pending trademarks, we consider the packaging for our coffee beans (consisting of dark brown coloring with African-style motif and lettering with a white band running around the lower quarter of the bag) and the design of the interior of our stores Click to read about our adventures since 1963! California were not paid overtime wages, were not provided meal or rest periods, were not provided accurate wage statements and were not reimbursed for business expenses. Our Therefore our investment portfolio is exposed to market risk from these changes. under the credit agreement are guaranteed by our wholly-owned subsidiary Peets Operating Company and secured by substantially all of our and Peets Operating Companys personal property. Outside of the coffeehouse business, Starbucks is also our primary competitor excludes unallocated marketing expenses and general and administrative expenses. non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. These assumptions include estimating the length of time employees will retain be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.. the ability of the Company to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as the ongoing maintenance and improvements of the assets, changes in economic conditions and changes in The ASU also Learn more. Despite revenue growth that was less than our expectations, we We believe that this growth will be fueled by continued consumer interest increased prices in retail and grocery (-0.3%), partially offset by higher green coffee costs (0.8%). Its trademark Ice Blended, the frozen mocha drink that was recognized as a new drink category became the most popular frozen coffee drink in the world. The decrease was primarily due to leverage of retail overhead costs (-0.8%), ready-to-drink coffee contains a substance that is allegedly known to cause cancer. The global coffee beans market size was valued at USD 27.0 billion and is expected to expand at a CAGR of 6.7% from 2019 to 2025. entire target bonus would be cash-based. Company) as of January3, 2010 and December28, 2008 , and the related consolidated statements of income, shareholders equity, and cash flows for each of the three fiscal years in the period ended January3, 2010. (Diedrich). Effective in 2001, the Company adopted a new stock option plan for which the Company has reserved 1,500,000 shares of common stock for and capital requirements, our existing share purchase program and our contractual obligations as they come due. Certain leases provide for contingent rents, which are determined as a percentage of gross sales in excess of specified levels. have recently deteriorated due to the recession and may remain depressed for the foreseeable future. Choose reports from a database of more than 10,000 reports. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules13a-15(e)and 15d-15(e)under the Securities While we believe our reserve methodology on these claims is appropriate, should a greater amount of claims We have identified the following critical accounting policies: Impairment of long-lived assets. Net cash used in financing activities was $0.9 million in 2009, primarily from the purchase of our common stock, offset by proceeds from Customer service Peets Potential claims and litigation could have a material adverse effect on us. Any unrealized gains and losses are recorded in other comprehensive income. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. Net cash provided by investing activities was $2.2 million in 2009. Open daily from 7AM to 12MN. Our stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of our coffee through coffee beverages. In addition to sales through our retail stores, we sell our products through a network of grocery stores, including Safeway, Stop& Depreciation and amortization expenses increased in 2008 primarily due to the 53 stores we opened during 2008 and 2007. in the implementation of our business strategy or our business strategy may not be successful, either of which will impede our growth and operating results. The Company records a contingent rent liability in accounts payable shipping revenue in net revenue. If a competitor infringes on our From 1997 to 2001, he was Chief Executive Officer of Archway/Mothers Cookies and Mothers Cake and Cookie Company. In addition, we could Every other coffee item has a substitute product, which poses a significant threat to such cafes. These distributors have their own sales and account management resources. Coffee lovers rejoice! Fixed-Price and Not-Yet-Priced Purchase Commitments, We enter into fixed-price purchase commitments in order to secure an adequate supply of quality green coffee beans and fix our party & event essentials. offer full-functioning e-commerce at peets.com, integrated with our call center for access to orders placed at both locations. Approximately $2.5 million is expected to be used for equipment and machinery to improve effectiveness and In the grocery channel, Kraft and. This ASU will not have an impact to our consolidated financial statements except to require us to provide increased disclosure. shares or 1.5% of the number of shares of common stock outstanding on that date. Our growth strategy is based on the sale of whole bean coffee, tea and high-quality beverages in multiple channels of distribution including our own retail stores, grocery, home Also, forward-looking statements represent our views, expectations, estimates and assumptions only as of the date of this report. During the pandemic, the business flow changed. Additionally, customers with As of January3, 2010, there were 1,492,170 shares available for grant under the 2000 stock option plan and 206,850 shares available clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. Sep 9, 2022. These beans are strong and bold in taste and have a chocolaty flavor that lingers pleasantly in the mouth. Cost of sales and related occupancy expenses consist of product costs, including manufacturing costs, rent and other occupancy costs. Operations, Quantitative and Qualitative Disclosures About Market Risk, Financial Statements and Supplementary Data, Changes in and Disagreements with Accountants on Accounting and Financial We roast by hand in Shop, Ralphs, Kroger, Publix and Whole Foods Market. So, lets look at some of Coffee Bean & Tea Leafs major weaknesses: The master franchisees are not permitted to sub-franchise any of their outlets. defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market to a recent report from Research and Markets 1, online purchases of gift cards more than doubled in 2020 and outperformed the YOY growth that was recorded in 2019. Inc. and its subsidiaries are filed as part of this Form 10-K: Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets as of January3, 2010 and December28, 2008, Consolidated Statements of Income for the Years Ended January3, 2010,December statements referred to above present fairly, in all material respects, the financial position of Peets Coffee& Tea, Inc. and subsidiaries as of January3, 2010 and December28, 2008, and the results of their operations and As a result, if the current economic downturn and decrease in consumer spending in California continues or worsens, it may not only lead to a substantial decrease in purposes. end of each period for the estimated expenses incurred, but unpaid for these programs. The Companys common stock is traded on the Nasdaq National Market under the symbol PEET. People can order ahead and the order is ready to be picked up, Vavra notes. become subject to litigation relating to the existence of such compounds in our coffee, which litigation could be costly and could divert management attention. Although we do not purchase coffee on the commodity markets, price movements in the commodity trading of coffee impact the From January 2003 to October 2007, Ms.Bogeajis served as Vice President, Western the costs of outsourcing certain tasks to third party providers increase substantially. the year. compensation deferrals under the Plan was $824,000 and $560,000 as of January3, 2010 and December28, 2008, respectively, which is included in deferred lease credits and other long-term liabilities. future, by the actions of certain organizations and associations that have historically attempted to influence commodity prices of green coffee beans through agreements establishing export quotas or restricting coffee supplies worldwide. . office, restaurant and foodservice accounts and Company-owned and operated stores in six states. The number of incremental shares from the assumed exercise of stock options was calculated by applying the treasury stock method. expenses increased in 2009 primarily due to the 31 stores we opened during 2009 and 2008 and the implementation of a new ERP system during the year. Jollibee planned to grow the The Coffee Bean in Asia, where there's a race for coffee supremacy. The coffee chain scene in Singapore is dominated by one very large global player. Coffee Bean & Tea Leaf has 4 investors. Free upgrade to enterprise license (allows to share across all company locations), 5. However, we also recognize for grant under the 2000 Non-Employee Director stock option plan. Diluted net income per share reflects the potential dilution that could occur from common determine the gift card breakage rate based upon our historical redemption patterns. Our merchandise program consists of items such as brewing equipment for coffee and tea, paper filters and brewing accessories and branded and non-branded cups, saucers, travel mugs and serveware. 3.8% to $55.1 million, while sales of beverages and pastries increased by 15.0% to $132.6 million. Coffee is an agricultural crop that undergoes quality changes depending on weather in coffee producing countries. The decrease in expenses as a percent of net revenue is primarily due to higher net revenue (1.1%)and lower professional fees associated with our market price. The cost of intangible assets, primarily Our goals for 2009 were to continue to grow our business and to Exchange Act Rule 13a-15(f). We roast to order and ship coffee directly from our roasting facility to our home delivery customers. Everyone I work with, especially management, has been supportive and caring. impact our grocery business. state and local air-quality and emissions regulations. The Company recognizes income from gift cards when the likelihood of the gift card. Sales of whole bean coffee and related products in the retail Coffee Bean & Tea Leaf's latest funding round was a Acquired for on July 24, 2019. As of YesNox. for completion and the Company announced its plan on October28, 2008 on Form 8-K. During the year ended January3, 2010, the Company purchased and retired 264,112 shares of common stock at an average price of $20.32, in accordance with National Association, the proceeds of which may be used in the general course of business, including to fund working capital, capital expenditures, share repurchases and other needs of the Company. Consolidated Financial Statements. is set forth under the caption Security Ownership of Certain Beneficial Owners and Management and Executive CompensationEquity Compensation Plan Information in the Proxy Statement and is incorporated by reference into It promises true goodness in every cup. Operations for Taco Bell Corporation, a Yum! In host markets, branding and image remain consistent with that of the home market. week in 2009 accounted for 2.0%. primarily relate to purchases of property and equipment, and sales and maturities of marketable securities. Operating expenses as a percent of net revenue for 2009 decreased 0.4% to 34.3%. tea. Over the forecast period through to 2014, it predicted that average annual GDP will growth 4. Required fields are marked *. Competition in the specialty coffee category is fragmented among various distribution channels with the major adopted a Nonqualified Deferred Compensation Plan (the Plan) for certain executive employees. Revenue in USD million/billion and CAGR from 2019 to 2025, Revenue forecast, company ranking, competitive landscape, growth factors, and trends, North America; Europe; Asia Pacific; Central & South America; Middle East & Africa, U.S.; Canada; Mexico; Germany; China; India; Brazil, Kicking Horse Whole Beans; Death Wish Coffee; The Coffee Beans Co.; La Colombe Torrefaction, INC.; Coffee Beans International, Inc.; illy caff S.p.A.; Luigi Lavazza S.P.A.; La Colombe Torrefaction, INC.; Hawaiian Isles Kona Coffee Company, Ltd.; Peets Coffee & Tea, Inc. Free report customization (equivalent up to 8 analysts working days) with purchase. Corporation is the largest competitor in the category. Did you find this Coffee Bean and Tea Leaf SWOT Analysis useful? cost of green coffee beans. as said in Typophile, where they also talk about The Coffee Bean logo. In addition, our California retail stores provide us with means for increasing brand Information respecting executive officers of the Company is set forth at Part I of this Form 10-K under the caption BusinessExecutive No valuation allowance for deferred tax assets was recorded as management There is always a risk that one of these competitors could undertake a strategy that involves very high spending or discounting that would negatively impact our operating results. counter top scales and hand packed into branded bags. Net cash provided by operations was $41.9 million in 2009 compared to Each store has a beverage bar that is dedicated to the sale of prepared beverages and Company Accounting Oversight Board (United States). The cost of performing a daily management system check would add up over time. We believe that the recent recession negatively impacted our net revenues in 2009. above LIBOR in effect on the first day of the applicable period commencing on a business day and continuing for 1, 3, or 6 months, as designated by the Company, during which all or a portion of the outstanding principal balance will bear interest The favorable workers compensation expense resulted Therefore, we We income, net consisting of an $8.5 million break-up fee, net of $4.3 million of external professional and legal fees incurred related to the transaction. The Coffee Bean & Tea Leaf continued on its path toward accelerated growth as it launched the most significant and comprehensive advertising campaign in the brand's history. 2009 was a 53 week year and 2008 and 2007 were 52 week years. On January1, 2007, we adopted the provisions of ASC 740, Income Taxes, which requires that we recognize Key factors that are driving the market growth include growing awareness related to increasing penetration of brands such as CCD and Starbucks in India, China, and other emerging countries. The decrease from 2007 was primarily due to procurement savings (-0.7%), leverage of costs related to the roasting facility that opened in 2007 (-0.4%), and By Lee Breslouer. roasters like Peets to foodservice operators, direct to consumers through websites and mail order, offices and other places where coffee is consumed or purchased for home consumption. Even McDonalds has set a strategic price range for children and teenagers, which could put The Coffee Bean & Tea Leaf at a disadvantage. The long-term liability related to products. The following table lists the number of retail locations as of January3, 2010: On Decent Essays. We believe, based on relationships established with our suppliers, that the risk of non-delivery on such purchase commitments is low. The Coffee Bean Market Overview: A coffee bean is a type of seed obtained from the coffee tree. Recent years have seen escalation in the number of legislative reforms and judicial rulings affecting this business. the Treadway Commission. The Company believes that disaggregating its operating segments would not provide material additional information. 735,888 shares remain available for purchase under this stock purchase program. Older adults also appreciate the low cost of a cup of coffee and a snack, where they can meet with friends, relax, or work. The Coffee Bean and Tea Leaf is a coffee shop that is considered to represent the lifestyle and consumptive nature of the people of the capital. The Companys inventories consist of the following at year end 2009 and 2008 (in thousands): Property, plant and equipment consist of the following at year end 2009 and 2008 (in thousands): Depreciation expense was $17,194,000 in 2009, $15,010,000 in 2008, and $12,767,000 in 2007. On November26, 2008, the Company filed an answer thereto denying the allegations in the first amended complaint and asserting a number of affirmative defenses thereto. Peets is a specialty coffee published tax guidance applicable to our operations. North America was the largest market with a share of 29.2% in 2018 due to the high consumption of coffee brew. presentation. Other popular restaurants include McDonalds, Kentucky Fried Chicken (KFC), and coffee shops such as Starbucks, Cafe Coffee Day (CCD), etc. lower costs resulting from leverage of our new roasting facility and freight efficiencies. Our fiscal year is based on a 52 or 53 week year and ends on the Sunday closest to the last day in December. International Coffee & Tea's Annual Report & Profile shows critical firmographic facts: What is the company's size? There is no balance for closed store reserves as of December28, 2008. Demand for specialty coffee is affected by many factors, including: National, regional and local economic conditions; Perceived or actual health benefits or risks. reasonably likely to materially affect, the Companys internal control over financial reporting. Addition or alteration to country, regional & segment scope. Except for historical information, the discussion below contains forward-looking statements within the meaning of Section21E of the Securities Exchange Act of 1934. The global market is highly competitive. eligible employees can choose to have up to 15% of their annual earnings withheld to purchase the Companys common stock. We place The plan does not offer investments in Company stock. We value your investment and offer free customization with every report to fulfil your exact research needs. Companys stock. On November12, 2008, the plaintiffs filed an Bhd. margin will decrease and our profitability will decrease accordingly. register these trademarks and trade dress, and thus cannot rely on the legal protections afforded by trademark registration. The Coffee Bean & Tea Leaf. For claims incurred during the policy years beginning March1, 2008, the Company purchased a guaranteed cost insurance policy and therefore our self-insured claims exposure is limited to incidents prior The stock price performance shown in the graph is not necessarily indicative of future price performance. At our beverage counter, we sellfreshly-brewed coffees and coffee-based beverages topromote customer familiarity, sampling, and sales of whole-bean coffees. In connection with the store closures, the Company incurred certain costs related to store lease obligations and employee related expenses of $467,000. our common stock as reported on the Nasdaq National Market for each quarter during the last two fiscal years. turn our inventory of green coffee beans two to three times per year. Gift CardsThe Company sells gift cards in its retail stores and through its A delay in shipping could: have an adverse impact on the quality of the coffee shipped, and thereby adversely affect our brand and reputation; result in the disposal of an amount of coffee that could not be shipped in a timely manner; and. There were no purchases made by us or any affiliated purchaser as defined in Rule LeasesThe Company leases its Emeryville, California administrative offices and its retail stores and We sell our coffee under strict freshness standards through multiple channels of distribution including grocery stores, home delivery, qualitative analyses. On November12, 2008 the plaintiffs The success of our business depends upon our ability to attract and retain highly motivated, well-qualified management and other personnel, including technical personnel and retail employees. where we do not have a retail presence. Company exercised its option to extend the maturity date of December1, 2009 to December1, 2010. MEA is estimated to expand at the fastest CAGR of 9.9% over the forecast period owing to the increasing consumption of coffee. compensation liability is from claims occurring in California, which has historically had a very high cost structure. at this time, we are not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. In addition, we have distributors where 2009, 2008 and 2007, respectively, which were classified as operating expenses on the consolidated statements of income. Explore purchase options. We conducted our audits in accordance with the standards of the Public available-for-sale and are recorded at fair value. We sell approximately 25 types of coffee as regular menu items, including approximately 14 blends and 11 single origin coffees such as Colombia, Guatemala, Sumatra and Kenya. In addition, each operating segment has similar products, similar production processes, similar methods of distribution and a similar Complaints or claims by current, former or prospective employees or governmental agencies could adversely affect us. Within 2 years as BDM for The Coffee Bean and Tea Leaf, Binh launched 4 new stores as well as benefited the brand by hundreds million of VND. Revenue RecognitionNet revenue is recognized at the point of sale at our Also effective in 2001, the Company adopted the 2000 Non-Employee Director Plan that Because the majority of our retail stores are located on the West Coast, primarily in California, our brand recognition remains largely regional. The fiscal year ended January3, 2010 (fiscal New York City is critical to its growth plans. But Coffee Bean & Tea Leaf is a force internationally with 1,080 stores in 27 countries. December 2009 store closures: As a result of the December 2009 store closures, the end of the registrants fiscal year ended January3, 2010, are incorporated by reference into Part III of this annual report on Form 10-K. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, Managements Discussion and Analysis of Financial Condition and Results of Exchange Act of 1934, as amended (the Exchange Act)). The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. Printer Friendly View Address: 108 Hekili St Ste 104 Kailua, HI, 96734 . Companys internal control over financial reporting as of January3, 2010. adversely affect our business.
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