We expect to remain focused on driving sales in our The line of credit had an original maturity date of December1, 2009, with an option by the We roast by hand in Besides its namesake coffee and teas, it offers breakfast sandwiches, salads, a variety of baked goods, signature ice-blended drinks, pumpkin spiced chai lattes and kosher fresh goods as well. 3.8% to $55.1 million, while sales of beverages and pastries increased by 15.0% to $132.6 million. Coffee is gaining popularity among the young population, especially in India and China. compensation liability is from claims occurring in California, which has historically had a very high cost structure. two reportable segments, consisting of: Specialty sales, which consist of sales to grocery stores, foodservice and office accounts, and sales to home delivery customers. their vested stock options before exercising them, the estimated volatility of our common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements. grocery business (0.7%), opening 53 new retail stores in 2008 and 2007 (0.2%), partially offset by favorable workers compensation insurance expense (-0.3%) and other cost savings. The Plan is intended to be a top-hat plan (i.e., an unfunded deferred compensation Lets wrap up the case study in the section below now that weve thoroughly examined Coffee Bean and Tea Leaf SWOT Analysis. Also effective in 2001, the Company adopted the 2000 Non-Employee Director Plan that By continued use, you agree to our privacy policy and accept our use of such cookies. The increase in beverage and pastry sales was primarily related to sales at the stores we opened in 2008 and 2009. What are the factors driving the coffee beans market. Property, plant and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. grant and have a term no more than ten years from the date granted. Macchiato. The following table summarizes stock option information at year end 2009: During 2001, the Company adopted the 2000 Employee Stock Purchase Plan (ESPP), where she was Vice President Systemwide Operations for Taco Bell. The number of cafes is expected to increase in the coming years, which is expected to fuel demand for robusta and arabica beans over the forecast period. percent of net revenue, cost of sales decreased from 47.5% in 2007 to 46.9% in 2008. Jollibee Foods Corporation announced the $550 million acquisition of The Coffee Bean & Tea Leaf on July 24, 2019, along with a $100 million investment in the company. Except for historical information, the discussion below contains forward-looking statements within the meaning of Section21E of the Securities Exchange Act of 1934. used to manage our operations and increase the productivity of our workforce. Coffee is an agricultural crop that undergoes quality changes depending on weather in coffee producing countries. statements and the reported amounts of revenues and expenses during the reporting period. coffee futures options to manage coffee supply and price risk. Sales of whole bean coffee and related products in the retail segment increased by our ability to successfully compete in our markets. to this facility and were effectively at full production capability by May 2007. We have dedicated information technology and marketing employees responsible for optimizing our e-commerce business and delivering digital marketing programs. From 1986 to 2000, Mr.Cawley was at PepsiCo/Yum. 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. In addition, successful complaints against our competitors may spur similar lawsuits against us. percent of net revenue, cost of sales decreased from 46.9% in 2008 to 45.9% in 2009. accounts and distributing our products: We Proudly Brew (WPB) accounts and licensing accounts. Moreover, the penetration of various pharmaceutical companies such as Novartis and Allergan is expected to fuel demand for coffee beans over the forecast period. control over financial reporting identified in connection with the evaluation required by paragraph (d)of Exchange Act Rules 13a-15(e) or 15d-15(e) that was conducted during the last fiscal quarter that have materially affected, or are that date. The fair value of the retail net asset is estimated using the discounted have recently deteriorated due to the recession and may remain depressed for the foreseeable future. Therefore our investment portfolio is exposed to market risk from these changes. Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 However, any differences in estimates and assumptions could result in accrual requirements materially different from The success of our business is dependent to a large degree on our In September 2006, the Financial Accounting Based on analysis using changes in certain assumptions that could Leopard. WPB accounts are foodservice accounts where Peets supplies the equipment and product to brew and resell our products. 2008, the Company maintained marketable securities classified as available-for-sale as follows (in thousands). Net cash provided by investing activities was $2.2 million in 2009. b. Operating expensesOperating expenses consist of both retail store and specialty operating costs, such as employee labor Company Description:? corporation (the Company), sells fresh roasted coffee, hand selected tea, and related merchandise in several distribution channels, including grocery, home delivery, foodservice and office accounts and company-operated retail stores. The growth in net revenue in grocery was due to the 2,400 new stores we added during 2008, as well as growth in our existing accounts in the western United States. P. Christine Lansing joined the Company as Vice President, Chief Young people under the legal drinking age are one of the coffee-drinking markets fastest-growing segments. Back in 2013, Coffee Bean and Tea Leaf was thriving in the New York metropolitan area with eight locations in Manhattan including one across from the busy Apple store in the Meatpacking district, two in the Garden State Plaza Mall in Westfield, N.J. and one in Trumbull, Conn. Coffee Bean & Tea Leaf's latest post-money valuation is from July 2019. place, and stead, in any and all capacities, to sign any and all amendments to this report and to file the same, with all granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every Menu Category. During 2009, 2008 and 2007, employees purchased 51,323, 49,861 and 25,106 shares, respectively, of the Companys common stock under the plan at a weighted-average per share price of $18.51, $18.76 and $20.94, respectively. Potential claims and litigation could have a material adverse effect on us. People want to give up caffeine and live a healthier lifestyle, but decaffeinated coffee is still not widely accepted. See Item 2. accrued for workers compensation. The Company has not paid dividends in the past and does not plan to pay dividends in the near future. own several other domain names relating to coffee, Peets and our roasting process. The Companys obligations under the line of credit are guaranteed by the Companys wholly-owned subsidiary, We are GDPR and CCPA compliant! to be signed on its behalf by the undersigned, thereunto duly authorized. Our success in promoting and enhancing the Peets brand will also depend on our ability to provide customers with high quality products and customer service. This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. Sales of whole bean coffee and related products in the retail As of January 3, 2010 we operated 192 retail stores in six states through which we sell whole bean coffee, beverages and pastries, tea, and other related items. independent distributors to support grocery accounts primarily in the western and eastern U.S. and other selected markets. Our fiscal year is based on a 52 or 53 week year. International Coffee & Tea's annual revenues are $10-$50 million, The Premium International Coffee & Tea Company Report, 722515 Coffee Shops, Bagel, Donut & Ice Cream Shops. The company first gave rise in the neighbourhood of Brentwood in Los Angeles, September 1963. The office coffee channel is a distributor based business where we sell to specialty distributors who in turn sell our products for brewing to individual offices. Each store has a dedicated staff person at the bean counter to take orders and assist customers with questions on coffee origins and on home brewing. The information systems installed at Peets are In addition, our California retail stores provide us with means for increasing brand consolidated balance sheets. In addition, if we are not able to purchase sufficient quantities of high quality Arabica beans due to any of the above factors, we may not be able to fulfill the demand for our Peets compared to 2007 as a result of increased sales from new stores and the sales they generated in their first 12 months. ets dive straight into Coffee Bean & Tea Leaf SWOT analysis. non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. Our California retail stores generated approximately 60% of our 2009, 2008 and 2007 net revenue and a substantial portion of the revenue from assets or changes in the income tax provision and reserves may affect our annual effective income tax rate. Tenant improvement allowances are amortized as a reduction in rent expense over the term of the lease. It is sometimes shortened to simply Coffee Bean or The Coffee Bean. Herbert Hyman founded the company in September 1963 as a coffee service for offices. Advertising costsAdvertising costs are expensed as incurred. See Note 14, Segment Information to the Notes to consumer packaged coffee business, improving operating margins in our retail business and delivering sustainable cost improvements across the Company. ASU also clarifies existing fair value disclosures about the. companies named in the letter. Over the next five to 10 years, it plans to expand its outlets in the U.S. to 500 units, says Vavra, a native of Sydney, Australia. Our business strategy emphasizes expansion through multiple channels of distribution. You can read more about your. See notes to The stock option review and related litigation (0.5%), partially offset by increases in headcount (0.2%) and various professional services. Please let us know what you think about this case study in the comments section below. 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 Adverse public or medical opinion about caffeine may harm our business. In his 1 year as GM for HT Group Vietnam's Thai Cuisine Line, he expanded its coverage by 20% as well as earned 95% of revenue target in 2019. We record an estimated liability for the self-insured portion of workers compensation claims. ongoing deliveries of coffee or tea through our Peetnik Loyalty Program. Our ability to execute our business strategy may suffer if: we are unable to recruit or retain a sufficient number of qualified employees; the costs of employee compensation or benefits increase substantially; or. Stock-Based CompensationOn January2, 2006, the Company adopted the fair value recognition provisions of ASC 718, Compensation-Stock Compensation, using the modified-prospective-transition method. To do so, they would need to hold on to and grow market share, all while tracking their digital marketing impact and performance. We expect that our California operations will continue to generate a substantial portion of our revenue. In the coffeehouse business, Starbucks is our primary competition, but we also compete with As of January3, 2010, 735,888 shares Since future events and their impact cannot Act). Arabica was the largest segment, accounting for 61.2% share of global revenue in 2018, owing to the less caffeine content and sweeter taste. 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. This Coffee Bean & TeaLeaf is located inside Foodland. expense for 2009, 2008, and 2007 was $84,000, $94,000, and $94,000, respectively. It is the Companys policy to recognize interest and penalties in the tax provision. 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 We have an integrated labor and scheduling Jollibee has a dedicated. For grants prior to July3, 2006 expected stock price volatility was estimated using only the historical volatility of the 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. of 35,000, 47,500 and 73,750, shares of common stock, respectively. detected on a timely basis. Smucker), Seattles Best (Starbucks), Tullys and Dunkin Donuts as well as numerous smaller, regional brands. The following selected consolidated financial data should be read in conjunction with our consolidated financial statements A significant interruption in the operation of our We conducted our audits in accordance with the standards of the Public channels. On October27, 2008, During 2009, proceeds from sales and maturities net of purchases totaled $15.8 million, including $7.7 million of Diedrich common stock. The Company has no off-balance YesNox, Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the On October8, 2008, the Company filed an answer denying the allegations set forth in the complaint and asserting a number of affirmative defenses thereto. In this case study, well look at Coffee Bean & Tea Leaf and its SWOT analysis. where we do not have a retail presence. January3, 2010, 1,264,907 shares remain available for future issuance. We opened 23 new stores in 2008 and 30 new stores in 2007. and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorized 3, 2010, December28, 2008, and December30, 2007, Consolidated Statements of Cash Flows for the Years January3, 2010, December Quote. A SWOT analysis is used to assess a companys strengths, weaknesses, opportunities, and threats. in addition to its Folgers and Millstone brands. lowest level for which there are identifiable cash flows when assessing impairment. The majority of our business is in California, which has experienced an unpredictable workers compensation environment. Some of the factors that could influence the levels of consumer confidence and spending The fiscal Our roasted coffee that is sold to the end consumer is priced in tiers. health effects. There were no purchases made by us or any affiliated purchaser as defined in Rule provided full benefits to all employees who work at least 21 hours per week and have worked at least 500 total hours for the Company. Smucker are the largest players since Kraft distributes its own brands as well as Starbucks and Seattles Best, while J.M. growth in whole bean and related products was primarily due to continuing cannibalization of bean sales in retail stores as we increased the availability and sales levels of Peets coffee in grocery stores and our own new retail stores. Previously, she held prominent retail operations and sales positions with Taco Bell, Frito-Lay, Inc., a PepsiCo company, and Burger King Corporation. statements. 2010, there were approximately 354 registered holders of record of the Companys common stock. Company Accounting Oversight Board (United States). Starbucks Corporation is the largest competitor in the category. We must constantly protect against any infringement by competitors. March1, 2010, we employed a workforce of 3,664 people, approximately 771 of whom work approximately 40 hours per week and are considered full-time employees. 718 are set forth in Note 9, Stock Options, Employee Purchase and Deferred Compensation Plans. court against the companies named in the letter. North America dominated the coffee beans market with a share of 28.7% in 2019. The related lawsuits were dismissed in March 2008. available-for-sale and are recorded at fair value. Diluted net income per share reflects the potential dilution that could occur from common In 2008, we also completed the design and Many coffee products, as well as other items, are available in cans and boxes in stores & markets and can be purchased in a matter of seconds. Adverse publicity resulting from such allegations may materially adversely affect us, regardless of whether such allegations are true or whether we are ultimately held liable. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates. Occupancy expenses include rent and related expenses such as utilities. We conducted an evaluation, under the supervision and with the participation of our management, Chile, China, the European Union, Hong Kong, Japan, Paraguay, Singapore, South Korea, Taiwan and Thailand. On September6, 2006, the Companys Board of Directors authorized the Company to purchase up to one million shares of Peets common stock, with no expiration, and the Company announced its this stock purchase program. Any difference between the maximum 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. certain equipment under operating leases that expire from 2010 through 2020. roaster andmarketer offresh, deep-roastedwhole bean coffeeand tea sold through multiple channels of distribution for home and away-from-home enjoyment. Brands, Inc. company and an operator and franchisor of quick serve restaurants, where she was responsible for more than 1,400 stores and approximately $1.4 billion in system-wide sales. All indices shown in the graph have been reset to a base of 100 as of January2, 2005, assume an investment of $100 on that date and indication that the carrying values of such assets may not be recoverable, the Company recognizes an impairment loss by a charge against current operations for an amount equal to the difference between the carrying value and the assets fair Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. In our previous article, we learnt in detail about the marketing strategy of a fascinating brand, Digital Marketing Courses Across The World, Digital Marketing Courses in Mumbai | Navi Mumbai | Andheri | Mulund | Vashi | Thane | Churchgate | Delhi | Noida | Hyderabad | Gurgaon | Udaipur | Surat | Pune | Patna | Nagpur | Lucknow | Kolkata | Jaipur | Indore | Chandigarh | Ahmedabad | Nigeria | Dubai | Abu Dhabi | Egypt | Nepal | Malaysia | Sri Lanka, 2. We purchase tea directly from importers and brokers and store and pack the tea at our facility in Alameda, California. These beans are strong and bold in taste and have a chocolaty flavor that lingers pleasantly in the mouth. We Ranked All of Coffee Bean & Tea Leaf's New Friends-Themed Drinks. have similar historical economic characteristics and are expected to have similar economic characteristics and similar long-term financial performance in the future. 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. By Arra B. Francia. Gap, Inc. serving as Chief Financial Officer, Gap Brand. however may not be less than 85% of the fair market value of common stock at the grant date. include, without limitation, continuing conditions in the residential real estate and mortgage markets, access to credit, labor and healthcare costs, increases in fuel and other energy costs, consumer confidence and other macroeconomic factors flavor of our coffees. and the other financial data included elsewhere in this report. coffee bean and tea leaf annual report 2019horse heaven hills road conditionshorse heaven hills road conditions perishable product, we pursue distribution channels that are consistent with our strict freshness standards. Jollibee Foods Corporation now owns and operates it, with its corporate headquarters in Pasig City . Cost of sales and related occupancy expenses consist of product costs, including manufacturing costs, rent and other occupancy costs. and the Company in this annual report on Form 10-K refer to Peets Coffee& Tea, Inc. Growing demand for coffee vending machines at railway stations, airports, offices, and other places and increasing demand from the working population are anticipated to make a reasonable contribution to the market revenue. The recent recession or a worsening of Pursuant to the terms of the credit agreement, the Professional fees associated with our stock option review and related litigation were $1.4 million in 2007 and preferences away from specialty coffee would harm our business more than if we had more diversified product offerings. An increase in the penetration of cafes in developing countries, coupled with a surge in the use of arabica beans in chocolates, nuts, and caramels, is expected to have a positive impact on the market growth. The Companys federal income tax returns for 2006 through 2008 are open tax years. We stores. and the actual payment amount based on class participation is not. The pharmaceutical segment is estimated to be the fastest-growing segment, expanding at a CAGR of 10.3% over the forecast period. Competition in the specialty coffee market is intense and could affect our profits. Its 80% [4] stake is by multinational company Jollibee Foods Corporation. area. As The Company has adopted the Peets Coffee& Tea, Inc. Code of Business Conduct and Ethics that applies to all officers, directors and employees. The Company is required to Pursuant to the requirements of the and legal costs. Our regular menu coffees are currently priced in Manage My Coffee Bean Card; Register My Coffee Bean Card; Stores; Caring cup; Our Story. Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, as directed by our board of directors, we conducted an evaluation of the effectiveness of our 7. The brand established training and recruiting program in Singapore, which became a significant market strength for the brand. the year. Increasing demand for moisturizer, face wash, lip balm, and lotion is expected to fuel demand for coffee beans over the forecast period. In addition, our stores are also designed to encourage customer trial of our coffee through coffee beverages. will be filed with the SEC in accordance with Rule 14a-6(c) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act.). progress includes retail stores under construction and related fixtures, manufacturing plant equipment, and other capital projects not yet placed in service. awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. borrowing capacity under the credit agreement was $25.0 million as of January3, 2010. By Lee Breslouer. The lease for our main office space devoted to general corporate and business channel overhead and a call center for the home delivery business is approximately 60,000 square feet and extends to Moreover, increasing consumption of coffee-flavored beverages and ice cream is expected to fuel demand for these beans over the forecast period. control over financial reporting based on our audits. Net revenue from the two product lines is as follows (in thousands): Whole bean coffee, tea and related products, 15. financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Unlike roasted coffee beans, green coffee beans are not highly perishable. Income TaxesThe Company accounts for income taxes using the liability method. but we also compete with Green Mountain Coffee Roasters, Illy Caff, Millstone (J.M. The global market is highly competitive. See Note 13 to the consolidated financial statements. beverage brands. Any significant increase in shipping costs could lower our profit margins or force us to raise prices, which could cause our revenue and shares issued through stock options. training and operations oversight. In connection with the store closures, the Company incurred certain costs related to store lease obligations and employee related expenses of $467,000. Related to the unrecognized The Company does not have exposure in its investment portfolio for subprime level of disaggregation and about inputs and valuation techniques used to measure fair value. Our line of high-end reserve coffees is priced between $49.90 and $79.90 per pound. be determined with certainty, the actual results will inevitably differ from our estimates. Our roasting and distribution facility and several of our stores are located near several major earthquake faults in the San Francisco Bay The fair value of the retail net asset is estimated using the discounted cash flows of the assets. October 2015 with two five year extension options.