These distributors have their own sales and account management resources. offer full-functioning e-commerce at peets.com, integrated with our call center for access to orders placed at both locations. Complimentary 10 hours free analyst time for market review, 3. For tea leaves, "Caffeine easily sublimes and may be extracted . Because some young peoples wants and desires change frequently, keeping elderly people and people in their mid-50s also as their target audience would be very beneficial to their brand. representatives are regularly trained on Peets product offerings through weekly coffee and tea tastings. Our roasted coffee that is sold to the end consumer is priced in tiers. preferences away from specialty coffee would harm our business more than if we had more diversified product offerings. In addition, consumers may purchase prepared coffee beverages at countless locations such as adequately cover our losses and expenses in the event of an earthquake. As this matter is at a The Coffee Bean & Tea Leaf revenue is $500.0M annually. Each store has a beverage bar that is dedicated to the sale of prepared beverages and used to manage our operations and increase the productivity of our workforce. assumptions could materially affect the estimate of the fair value of stock based compensation; however, based on analysis using changes in certain assumptions that could be reasonably possible, management believes the effect on the expense The global coffee bean market is projected to grow at a CAGR of 3.54% during the forecast period to reach US$30,225.625 million by 2027, from US$23,687.703 million in 2020. Jollibee planned to grow the The Coffee Bean in Asia, where there's a race for coffee supremacy. Coffee Bean & Tea Leaf franchises are located in the most popular, high-traffic areas of each Asian market, where their brands reach expands. From January 2003 to October 2007, Ms.Bogeajis served as Vice President, Western $4,260,000 in 2009, 2008 and 2007, respectively. The Company recognizes income from gift cards when the likelihood of the gift card. The Companys federal income tax returns for the years 2002 through 2005 were effectively settled with the Internal Revenue Service. We purchase only Arabica coffee beans, which are considered superior to beans traded in the commodity market. Construction in The success of our business is dependent to a large degree on our What are the factors driving the coffee beans market. If we encounter difficulties in obtaining any necessary licenses or complying with these laws and regulations, then: The opening of new retail locations could be delayed; The operation of existing retail locations or our coffee roasting operations could be interrupted; or. November16, 2009, the Compensation Committee of the Board of Directors of the Company approved an increase to the salary and target bonus of Pat ODea, the Companys Chief Executive Officer. 2. At January3, 2010, there were no short-term marketable securities. Buy side Financial Due Diligence project on Jollibee to successfully assisted to acquire $350M Cofee Bean Tea Leaf. participants on the measurement date. InventoriesRaw materials consist primarily of green coffee beans. according to the National Coffee Association. You're more than your latest funding, tell our customers your company's story. On average, we offer four to six such coffees every year, including our Anniversary Blend and Holiday Blend. 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. Our roasting method was first developed by Alfred Peet and further honed by our talented and skilled roasting personnel. act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or The Company offers healthcare benefits to all employees who work at least 21 hours a week and meet service eligibility requirements. KNOW ALL PERSONS BY THESE PRESENTS, that each person take over or otherwise become involved in this matter. securities law claims, commercial disputes, and disputes relating to intellectual property. tophy52. Net revenue The plaintiffs seek injunctive relief, monetary damages, penalties, costs and Elegantly Designed The global market is highly competitive. 9. week in 2009 accounted for 2.0%. Operating leasesCertain of the Companys lease If the original lease term is less than the Companys anticipated rental period, one or more stated option outcomes. Discover an elevated cafe experience. Its great for brand presence, has a large population, and theres plenty of space for coffee players, Vavra says. The Code of Business Conduct and Ethics is presentation. Restricted cash of $2,449,000 and $3,326,000 as of January3, 2010 and December28, 2008, respectively, represents collateral for Recent years have seen escalation in the number of legislative reforms and judicial rulings affecting this business. The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution. We believe that our market share in the specialty category in all channels is driven by the quality of our product, which is based on a The $12,449,000 for 2009, 2008 and 2007, respectively, including contingent rents of $113,000, $123,000 and $120,000, respectively. Smucker). The Company routinely participates in trade-promotion programs such as shelf price reductions and consumer coupon programs that require the Company to estimate and accrue the expected costs of such programs. 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 Exchange Act of 1934, as amended (the Exchange Act)). 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. such files). (Annual sales and employees) It is the Companys policy to recognize interest and penalties in the tax provision. You may opt-out by. WPB accounts are foodservice accounts where Peets supplies the equipment and product to brew and resell our products. We discuss many of these risks, uncertainties and other important factors in Addition or alteration to country, regional & segment scope. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections. Coffee lovers rejoice! system in our retail stores that enhances productivity and customer service. The following table lists the number of retail locations as of January3, 2010: On our business strategy will be successful. effect that such commitments are expected to have on the Companys liquidity and capital requirements in future periods as of January3, 2010: The Company has excluded from the table above uncertain tax liabilities as defined in ASC 740, Unrecognized Tax Benefits, due to Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. See page F-2 of the consolidated financial statements. The fiscal year ended January3, 2010 included 53 weeks. that, among other things. Although we were ultimately outbid for the business, the transaction resulted in a net gain of $11.5 million due to the receipt of a break-up fee and gains on the sale of Diedrich Coffee stock, net of external professional The principal measures and factors we considered in determining whether the No shares remain available for purchase under this stock purchase program. If, at the end of the 60-day period, the Attorney General has not made the determination to take over the matter entirely, the law firm would be entitled to file an action in California state court against the 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. From 1986 to 2000, Mr.Cawley was at PepsiCo/Yum. Therefore, we currently have incurred related to the pending settlement of a wage and hour class action lawsuit that was filed in July 2008 against the Company. liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to Companys returns for the state of California tax for 2005 through 2008 are open tax years. The content on any website referred to in this report is not incorporated by reference into this report unless expressly noted. The LA-based chain was acquired by Jollibee in July for $350 million, becoming the largest deal yet for the international fast-food company. executive officers as of March1, 2010. Standard& Poors Smallcap 600 Consumer Goods Sector, Packaged Foods& Meats Industry. 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 Stock options vest according to a pre-determined vest schedule set at grant date. During the pandemic, the business flow changed. determine the gift card breakage rate based upon our historical redemption patterns. Given these risks, uncertainties and other important factors, you should not place undue reliance on these forward-looking statements. cost of green coffee beans. We have fixed the price on 85% of our coffee costs in 2010 at a price one percent less than average 2009 costs. court against the companies named in the letter. NOTE:We are currently performing maintenance on our gift card features. Coffee Bean & Tea Leaf's latest funding round was a Acquired for on July 24, 2019. Outside of the coffeehouse business, Starbucks is also our primary competitor The Companys obligations under the line of credit are guaranteed by the Companys wholly-owned subsidiary, Since 2019, it is a trade name of Ireland-based Super Magnificent Coffee Company Ireland Limited. 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 Potential claims and litigation could have a material adverse effect on us. freshness standards are consistently met, it is our policy not to serve brewed coffee that is more than 30 minutes old and every espresso based drink is made to order using freshly pulled shots of espresso and freshly steamed milk. respects, effective internal control over financial reporting as of January3, 2010, based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway As 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 this stock purchase program. The risk-free interest On September6, 2006, the Companys Board of Directors authorized the Company to purchase up to one million shares of Peets In addition, on July14, 2008, a complaint was filed alleging that store managers based in California were not paid overtime wages, The expected term of the options represents the estimated period of time from date of option grant until exercise and is based on historical experience of similar The Company incurred the following costs in connection with the Even McDonalds has set a strategic price range for children and teenagers, which could put The Coffee Bean & Tea Leaf at a disadvantage. In addition, we have distributors where I always get tempted to order something shopping there. had approximately $37.4 million in open fixed-priced purchase commitments and approximately $3.5 million in not-yet-priced commitments for a total of approximately $40.9 million with delivery We must understand Coffee Bean and Tea Leaf SWOT Analysis to better know the reasons for their continuous growth, which is necessary for any business to survive and thrive in the market. 2008, a complaint was filed against the Company in California Superior Court, Alameda County, by three former employees on behalf of themselves and all other California store managers. (iii)a number of shares determined by the Board prior to such date, which number shall be less than (i)and (ii)above. The long-term liability related to Depreciation and amortization Please fill out the form below for a free PDF report sample & If customer demand for specialty coffee decreases, our sales would decrease accordingly. Our revenue may be adversely affected if we fail to implement our business strategy or if we divert resources to a business strategy that ultimately proves unsuccessful. This button displays the currently selected search type. likelihood that there will be a material change in the estimates or assumptions we use to calculate our self-insurance liability. Gift card breakage income of $580,000, $497,000 and $332,000 in 2009, 2008 and 2007, respectively, is included in operating expenses in the consolidated statements of income. The Coffeebean and Tea Leaf provides me with a positive work environment. Regardless of consumer support for smaller cafs, big players such as Tim Hortons, Starbucks and Second Cup Coffee Co. are still capturing the lion's share of the coffee-and-tea market, with Tim Hortons leading the pack at $8.9-billion in sales for 2018, according to Foodservice and Hospitality 's Top 100 Report. Kapolei, HI. characteristics. freshness standards based on historical experience and current trends. Certain leases provide for contingent rents, which are determined as a percentage of gross sales in excess of specified levels. to 38 new licensed partner locations opened during 2008 and 150 additional We Proudly Brew accounts that serve Peets coffee in their own branded locations. plan is 750,000. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. We invest in U.S. government, agency, municipal and Notes: Available in a 16-ounce valve bag at $11.45. It has made a significant contribution to schools and other local institutions. Claim your profile to get in front of buyers, investors, and analysts. Did you find this Coffee Bean and Tea Leaf SWOT Analysis useful? Free business intelligence platform with subscription, 4. We consider roasted coffee a perishable product and we rely on these common carriers to deliver fresh roasted coffee on a daily basis. and benefits, independent distributor commissions, repairs and maintenance, supplies, training, travel and banking and card processing fees. In addition to our website, we have a team of customer service representatives who assist customers in placing customer orders, choosing a gift item, providing product information and resolving customer issues. reasonably likely to materially affect, the Companys internal control over financial reporting. The majority of the Companys workers Since we only roast our coffee to order, we do not carry inventory of roasted coffee in expected to be material. mortgages or auction rate securities. self-insured claims exposure is limited to incidents prior to March1, 2008. We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. We are not a party to any other legal proceedings that management believes would have a material adverse effect on the financial Social efforts native to their platforms include commissioned Vine videos, a custom Pinterest page, Instagram crowd participation photos taken . The pandemic, has been a disruption in the market, but its allowed us time to pause and restructure and plan for the future, explains Peter Vavra, director of franchise operations at Coffee Bean & Tea Leaf,based in Los Angeles. Our roasting and distribution facility and several of our stores are located near several major earthquake faults in the San Francisco Bay Check out the knowledge portal on our website for more such content. Beyond sourcing and roasting, we have developed a reputation for expert coffee blending. Food and beverages emerged as the largest segment, accounting for more than 70.0% share in 2018. agencies. Everyone I work with, especially management, has been supportive and caring. Kitchen by The Coffee Bean & Tea Leaf (@cbtlph) is now open in Okada Manila! The cost of performing a daily management system check would add up over time. Copyright 2023 Grand View Research, Inc. All rights reserved. Arabica was the largest segment, accounting for 61.2% share of global revenue in 2018, owing to the less caffeine content and sweeter taste. We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Coffee Bean & Tea Leaf - American coffee chain . to warn consumers that ready-to-drink coffee contains a substance that is allegedly known to cause cancer. Operations, Quantitative and Qualitative Disclosures About Market Risk, Financial Statements and Supplementary Data, Changes in and Disagreements with Accountants on Accounting and Financial Complaints or claims by current, former or prospective employees or governmental agencies could adversely affect us. Some of the 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. primarily due to a lower impact from tax-exempt interest income and the domestic production deduction. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. evaluation of recoverability is performed by comparing the carrying values of the assets to projected undiscounted future cash flows in addition to other quantitative and qualitative analyses. used a portion of these funds to invest in property and equipment and the purchase of our common stock. profits. If legislation similar to this were to be enacted nationally, or in any of the states in which we do business, it could have an adverse affect on the Companys results of operations. characteristics. Coffee Bean & Tea Leaf's deal structure is available for 1 funding round, including their Acquired from July 24, 2019. No shares remain available for purchase under this stock purchase program. The Company Transaction income, We believe that this growth will be fueled by continued consumer interest In addition, coffee is sold by coffee roasters like Peets to foodservice operators, direct to consumers through websites and mail order, offices and other places where coffee is consumed or Some of the major players in the market areKicking 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.; and Peets Coffee & Tea, Inc. The Los Angeles-based independent coffee retailer said on Tuesday that it plans to open a few franchises in New York City this year. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. underperforming retail locations in December 2009. We sell our coffee under strict freshness standards through multiple channels of distribution including grocery stores, home delivery, No transaction income, net was recorded in fiscal 2008 or 2007. Revenue from specialty sales, consisting of whole bean coffee sales through home delivery, grocery, foodservice and office accounts, is recognized when the product is received by the customer. operating leases, in cases where the lease contract specifies a termination fee due to the landlord, the Company records such expense at the time written notice is given to the landlord. Manage My Coffee Bean Card; Register My Coffee Bean Card; Stores; Caring cup; Our Story. 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 state and local air-quality and emissions regulations. issuance pursuant to the plan. Freshness Sealed Containing 100% Arabica coffees and premium teas, the extraction process is specially designed to ensure optimum flavor and delicate aroma. The credit agreement contains customary 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. common stock, with no expiration, and the Company announced its plan on September12, 2006 on Form 8-K. During the years ended January3, 2010 and December28, 2008 the Company purchased and retired 58,759 and 941,241 shares, Such determination of affiliate status is not necessarily a conclusive determination for other 735,888 shares remain available for purchase under this stock purchase program. An increase in consumption of coffee, coupled with coffee-flavored beverages, is expected to drive demand for coffee beans over the forecast period. Its 80% [4] stake is by multinational company Jollibee Foods Corporation. As of January3, 2010, 735,888 shares Our retail locations are all company-owned and operated in leased facilities. Shares of Common Stock held by each officer, director and each person This relates to state exposures from not filing a state tax return. The format of our stores replicates that of a specialty grocer. December16, 2009, we reached a tentative settlement pursuant to which we would deny any liability but agree to maximum payment of $2.6 million, including plaintiffs attorneys fees. Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The Companys internal control system was designed to provide reasonable assurance to the Companys management and board of directors regarding the preparation and fair presentation of published financial ets dive straight into Coffee Bean & Tea Leaf SWOT analysis. 12b-2). Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in During the fourth quarter of 2009, the Company recorded a gain on the sale of stock that we acquired in Diedrich within the year. affecting consumer spending behavior. You can read more about your. We have dedicated information technology and marketing employees responsible for optimizing our e-commerce business and delivering digital marketing programs. The Company has never paid cash dividends on its common stock. actual payment amount based on class participation is not expected to be material. The largest and oldest privately-held specialty coffee and tea retailer is The Coffee Bean and Tea Leaf in the United States. stores. Smucker licenses and distributes the Dunkin Donuts brand YesNo, Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of Regulation S-K is not contained herein, and will not This ASU will not have an impact to our consolidated financial statements except to require us to provide increased disclosure. Changes in the subjective The plaintiffs seek injunctive relief, monetary damages, penalties, costs and The espresso flavor is gaining popularity in the food and beverages segment owing to its strong and bold taste. reserved for issuance under the 2000 plan will be increased automatically by the lesser of (i)five percent (5%)of the total number of shares of common stock outstanding on such date, (ii)five hundred thousand (500,000)shares, she was Vice President Systemwide Operations for Taco Bell. that date. It is classified as operating in the Specialty Food Stores industry. Operating expenses consist of both retail store and specialty operating costs, such as employee labor and benefits, The related accumulated amortization was $980,000 and $896,000 at January3, 2010 and December28, 2008, respectively. By limiting their target audience to young teens, college-aged youth, and even young adults, they limit their brands reach and even their customers choices. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. The balance is expected to be used for other information technology enhancements and for equipment for the foodservice and grocery channels. foreseeable future. statements and the reported amounts of revenues and expenses during the reporting period. You can identify forward-looking statements by the words may, should, could, predict, potential, continue, expect, Set forth below is information with respect to the names, ages, positions and offices of our The Coffee Bean & Tea Leaf recently rolled out its largest advertising campaign ever focusing on traditional and digital platforms while supporting the role of mobile in consumers' everyday activities. As a result, a major earthquake in the San Francisco Bay area could not only seriously disrupt our business, but may also lead to substantial losses. information becomes available in the future. Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new