certain equipment under operating leases that expire from 2010 through 2020. We currently use fixed-price purchase commitments, but in the past have used and may potentially in the future use coffee futures and Purchase CommitmentsAs of January3, 2010, the Company had outstanding coffee purchase commitments with both fixed prices and prices with a fixed premium over the New York C market as follows (amounts in 9.9% over the prior year primarily due to increased office coffee distribution, the 25 new licensed partner locations opened during the year and 144 additional We Proudly Brew accounts that serve Peets coffee in their own branded not emphasize these items, but we carry them in retail stores and offer them through home delivery as a means to reinforce our commitment to premium home-brewed coffee and tea. Net cash provided by investing activities was $2.2 million in 2009. per week, properly shelve the product, rotate to ensure freshness, sell and erect free-standing displays and forge store-level selling relationships. Macchiato. Such differences could be material to the financial statements. In addition, coffee is a trade commodity and, in general, its price can fluctuate depending on: weather patterns in In accordance with the aggregation criteria of ASC 280, these three operating segments have been aggregated into one reportable segment because, in the Companys judgment, the specialty operating segments Beans are freshly scooped from bins under the counter, weighed on may be able to duplicate them, which could harm our competitive position. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. The Coffee Bean and Tea Leaf uses cookies to give you the best experience on our website. We procure coffee from 23 countries, with a large percentage of coffee coming from Central and South America, and over 30 different Retail store operations consist of sales of whole bean coffee, beverages, tea and related products through Company-operated retail stores. By continuing to use this site you are consenting to these choices. In this case study, well look at Coffee Bean & Tea Leaf and its SWOT analysis. that, as a result of our reputation that has been built over 40 years, we have access to some of the highest quality coffee beans from the finest estates and growing regions around the world and we are occasionally presented with opportunities to We discuss many of these risks, uncertainties and other important factors in rd week, as summarized by business channel below. In the grocery channel, we sell our coffee in 12 ounce packages at prices established by For the next twelve months, we expect our cash flows from operations and cash and marketable securities to be sufficient for our operating Increasing penetration of franchise outlets such as CCD and Starbucks in India, China, and other countries is the main factor anticipated to drive the market over the forecast period. From 1997 to 2001, he was Chief Executive Officer of Archway/Mothers Cookies and Mothers Cake and Cookie Company. The stock price performance shown in the graph is not necessarily indicative of future price performance. Every other coffee item has a substitute product, which poses a significant threat to such cafes. the calculated accruals. that date. We opened 23 new stores in 2008 and 30 new stores in 2007. Under Proposition 65, the letter commenced a 60-day period during which the California Attorney General must decide whether to take over or otherwise 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 Addition or alteration to country, regional & segment scope. Also, in our opinion, the Company maintained, in all material The specialty coffee category is highly coffee futures options to manage coffee supply and price risk. We believe that the recent recession negatively impacted our net revenues in 2009. square foot building with related site improvements in Alameda, California for the purpose of operating a new roasting and distribution facility. Accrued Workers Compensation and BenefitsThe Company records an estimated liability for the self-insured portion of workers compensation claims. 2009 was a 53 week year and 2008 and 2007 were 52 week years. available-for-sale and are recorded at fair value. Based on our evaluation under The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. J.M. A significant interruption in the operation of our roasting and distribution facility could potentially disrupt our operations. Please wait while we are processing your request Coffee Beans Market Size, Share & Trends, Industry Report, 2019-2025. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. comprised 64.6%, 65.9% and 67.5% of net revenue for the fiscal years 2009, 2008 and 2007, respectively. 2905. We invest in U.S. government, agency, municipal and Transactions in the Proxy Statement and is incorporated by reference into this Form 10-K. Information concerning director independence required by Item13 is set forth under the caption Proposal 1- Election of The fiscal They focus on specific niche markets rather than the general public. following table summarizes the differences between basic weighted average shares outstanding and diluted weighted average shares outstanding used to compute diluted net income per share (in thousands): Basic weighted average shares outstanding, Incremental shares from assumed exercise of stock options, Diluted weighted average shares outstanding, On January21, 2010, the FASB issued an ASU on improving disclosures about fair value measurements, which amends the ASC reporting, included in the accompanying Managements Report on Internal Control over Financial Reporting. Did you find this Coffee Bean and Tea Leaf SWOT Analysis useful? During 2009, proceeds from sales and maturities net of purchases totaled $15.8 million, including $7.7 million of Diedrich common stock. before applicable income taxes, based on the Companys closing stock price of $33.35 as of the last business day of the year, which would have been received by the optionees had all options been exercised on that date. Shares of the Philippine's biggest restaurant . The Coffee Bean & Tea Leaf (sometimes shortened to simply "Coffee Bean" or "The Coffee Bean", often abbreviated as CBTL) is an American coffee shop chain founded in 1963. 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. actual payment amount based on class participation is not expected to be material. In the grocery channel, Kraft and J.M. plan covers substantially all employees. [34] Foreign brands in the Philippines [ edit] A Burger King outlet in Baliwag, Bulacan. Furthermore, an increase in the number of coffee shops in Canada and the U.S. is expected to fuel demand for coffee beans over the forecast period. We have no control over these common carriers and the services provided by them may be interrupted as a The recent recession or a worsening of expected to be material. characteristics. Professional fees associated with our stock option review and related litigation were $1.4 million in 2007 and Light & Subtle, Light & Distinctive, Medium & Smooth, Dark & Distinctive, Decaffeinated, Flavored, and Reserve are the 7 categories of coffees offered by the company. where we do not have a retail presence. 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. Securities registered pursuant to Section12(b) of the Act: Name of each exchange on which registered. Peets 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. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful life or the term of the related lease, Such determination of affiliate status is not necessarily a conclusive determination for other The related asset is classified in cash The supply and price of coffee are subject Competition in the specialty coffee category is fragmented among various distribution channels with the major For the policy years beginning March1, 2008, we have purchased a guaranteed cost policy and therefore our data). The Company files income tax returns in the U.S. federal jurisdiction and various state 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. take over or otherwise become involved in this matter. 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. Realized gains and losses are determined on the Thomas P. Cawley has served as Chief Financial Officer since July 2003. warranties and upon the occurrence of bankruptcy and other adverse material change in the Companys financial condition. Companys stock. We are document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. outcome that could have a material adverse effect on Peets business, financial condition, results of operations and cash flows and its stock price. The total amounts December 2009 store closures: As a result of the December 2009 store closures, the This relates to state exposures from not filing a state tax return. For complete Top 500 data, including each chains sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomics analysis, growth forecast and more: Winsight is a leading B2B information services company focused on the food and beverage industry, providing insight and market intelligence to business leaders in every channel consumers buy food and beverage convenience stores, grocery retailing, restaurants and noncommercial foodservice through media, events, data products, advisory services, and trade shows. Net revenue for 2009 increased 9.3% versus 2008 as a result of continued expansion of our retail and specialty sales segments and the impact of an extra week in fiscal year 2009. distribution channels being coffeehouses (our retail segment) and grocery stores (part of our specialty segment). In grocery, we expect to continue to expand into new markets although the full extent of our penetration will depend upon the development of specialty coffee as a category in many markets. On average, we offer four to six such coffees every year, including our Anniversary Blend and Holiday Blend. There were no changes in the Companys internal Market Share From the data, we can see that CBTL company shares in Singapore since 2006-2010 have been stagnant at 0.4%. P. Christine Lansing joined the Company as Vice President, Chief Corporation is the largest competitor in the category. 28, 2008 and December30, 2007, Consolidated Statements of Shareholders Equity for the Years Ended January3, 2010, register these trademarks and trade dress, and thus cannot rely on the legal protections afforded by trademark registration. 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 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 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated addition, any litigation relating to such allegations could be costly and could divert management attention. 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. productivity, provides a higher level of service to our customers and maintains timely information for performance evaluation. We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. 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. Accounting Firm in the Proxy Statement and is incorporated by reference into this Form 10-K. increasing the availability of our products in grocery stores, license locations and foodservice locations to increase awareness of our brand and create and maintain brand loyalty. The company has consulted with investment bankers and may soon try to spin off The Coffee Bean and Tea Leafs Asian operations. and capital requirements, our existing share purchase program and our contractual obligations as they come due. Additionally, we have We purchase only Arabica coffee beans, which are considered superior to beans traded in the commodity market. Any significant increase in shipping costs could lower our profit margins or force us to raise prices, which could cause our revenue and The average time that single people spend in an outlet (normally using their computers or studying) is 2 hrs. We dont have an intimidating environment. Legal fees of $128,000 were incurred in the third quarter of 2009. Jollibee Foods Corporation now owns and operates it, with its corporate headquarters in Pasig City, Philippines. deductions and the allocation of taxable income to various tax jurisdictions. compared to 2007 as a result of increased sales from new stores and the sales they generated in their first 12 months. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. Because our business is highly dependent on a single product, specialty coffee, if the demand for specialty coffee decreases, our business could suffer. Pursuant to the terms of the credit agreement, the Home delivery comprised 5.5%, 6.3% and 7.5% of net revenue for the fiscal years 2009, 2008 and 2007, respectively. Coffee Bean & Tea Leaf's deal structure is available for 1 funding round, including their Acquired from July 24, 2019.