2. The exercise price of options granted will be equal to the fair market value of the common stock on the date of 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 Pursuant to the requirements of Section13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report The Company incurred the following costs in connection with the stores. Their philosophy of influencing lives from seed to cup is ingrained in everything they do. Robusta is expected to be the fastest-growing market with a CAGR of 7.4% during the forecast period. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. Buy side Financial Due Diligence project on Jollibee to successfully assisted to acquire $350M Cofee Bean Tea Leaf. In 2009, 2008 and 2007, the Company granted non-employee director options to purchase an aggregate Large Accelerated FilerAccelerated FilerxNon-Accelerated FilerSmaller reporting company, Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule Operations, Quantitative and Qualitative Disclosures About Market Risk, Financial Statements and Supplementary Data, Changes in and Disagreements with Accountants on Accounting and Financial If we experience an interruption in these services, we may be unable to ship our coffee in a timely manner. The complaint alleges that store managers based in Some key players operating in the coffee beans market include Kicking Horse Whole Beans; Death Wish Coffee; The Coffee Beans Co.; La Colombe Torrefaction, INC.; Coffee Beans International, Inc.; illycaff S.p.A.; Luigi Lavazza S.P.A.; La Colombe Torrefaction, INC.; Hawaiian Isles Kona Coffee Company, Ltd.; and Peets Coffee & Tea, Inc. b. according to the National Coffee Association. Except for historical information, the discussion below contains forward-looking statements within the meaning of Section21E of the Securities Exchange Act of 1934. our business strategy will be successful. 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. they generated in their first 12 months. The coffee bean card. 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. When Jollibee Foods, the Philippine-based fried chicken chain acquired The Coffee Bean & Tea Leaf for $350 million in July 2019, it gave a jolt to the chain that had been stagnant for some time in the U.S. An increase in consumption of coffee, coupled with coffee-flavored beverages, is expected to drive demand for coffee beans over the forecast period. Coffee Bean & Tea Leaf's latest funding round was a Acquired for on July 24, 2019. 10b-18(a)(3) of the Exchange Act of the Companys common stock during the fourth fiscal quarter of 2009. Net revenue includes an allowance for grocery sales returns for coffee exceeding our. circumstances indicate that the carrying of long-lived assets may be impaired, an evaluation of recoverability is performed by comparing the carrying values of the assets to projected future cash flows in addition to other quantitative and Arabica was the largest segment, accounting for 61.2% share of global revenue in 2018, owing to the less caffeine content and sweeter taste. Our roasting and distribution facility and several of our stores are located near several major earthquake faults in the San Francisco Bay ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Exchange Act of 1934, as amended (the Exchange Act)). The Company was organized as a Washington corporation in 1971. , peets.com, Blend 101, eCup, Espresso Forte, Fresh Fridays, Gaia Organic Blend, Garuda Measurements and Disclosures to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. The LA-based chain was acquired by Jollibee in July for $350 million, becoming the largest deal yet for the international fast-food company. Question: TASK 2: Report Read the case study on "The Coffee Bean & Tea Leaf. More on this chain: Coffee Bean & Tea Leaf. Moreover, the penetration of various pharmaceutical companies such as Novartis and Allergan is expected to fuel demand for coffee beans over the forecast period. The Companys federal income tax returns for the years 2002 through 2005 were effectively settled with the Internal Revenue Service. Free upgrade to enterprise license (allows to share across all company locations), 5. Realized gains and losses are determined on the These products are carefully selected for quality and uniqueness. Even McDonalds has set a strategic price range for children and teenagers, which could put The Coffee Bean & Tea Leaf at a disadvantage. Free business intelligence platform with subscription, 4. purchase unique and special coffees. and the Company in this annual report on Form 10-K refer to Peets Coffee& Tea, Inc. For more details, please read our privacy policy. party & event essentials. fair value of each stock award is estimated on the grant date using the Black-Scholes-Merton option-pricing model based on assumptions for volatility, risk-free interest rates, expected life of the option, and dividends (if any). determined in relation to LIBOR. This Coffee Bean & TeaLeaf is located inside Foodland. On January1, 2007, we adopted the provisions of ASC 740, Income Taxes, which requires that we recognize We believe these business categories are useful in understanding our results of operations for the periods presented because we operate our stores and record revenue through these two categories. Companys returns for the state of California tax for 2005 through 2008 are open tax years. Foodservice and office comprised 9.8%, 9.7% and Our first priority has been to develop primarily in the western U.S. markets where we already have a presence and have higher customer awareness. Coffee is an agricultural crop that undergoes quality changes depending on weather in coffee producing countries. In the specialty sales segment, net revenue increased 13.4% compared to 2008, or 11.4% without the 53 We expect 2010 to be challenging as well given the continued economic uncertainty. As this matter is at a Stock Option, Employee Purchase and Deferred Compensation Plans. 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 accompanying consolidated statements of income. While we believe our reserve methodology on these claims is appropriate, should a greater amount of claims The registered independent public accounting firm of Deloitte& Touche LLP has issued a report on the effectiveness of the The Company recorded shipping revenue of $1,948,000, $2,593,000 and $2,718,000 related to home delivery sales in 2009, 2008 and 2007, respectively. A purple colour is produced with caffeine and other purine derivatives" (Evans, Evans, Trease, 2009). high value on our Peets trade name, and we own several trademarks and service marks that have been registered with the United States Patent and Trademark Office, including Peets, Peets Coffee& Tea gains or losses from the sale of these instruments. It is classified as operating in the Specialty Food Stores industry. The global coffee beans market size was estimated at USD 28.60 billion in 2019 and is expected to reach USD 30.33 billion in 2020. b. This will be followed by a business canvas model, a detailed study of nine essential elements that The fiscal The Coffee Bean & Tea Leaf has 12,000 employees, and the revenue per employee ratio is $41,666. In the long-term, we expect to continue to open new retail This report is important for The Coffee Bean & Tea Leaf as it helps them to identify their problems and make further improvements to enable them to compete with their competitors, for example, Starbucks. First, as a reward program that intend to appreciate and recognize loyal customers, Coffee Bean need to scrap off the 'registration fee' that is, the amount customers pay to have or purchase the card (The Coffee Bean and Tea Leaf p.1). . the commencement of the lease. The Committee also increased Mr.ODeas annual target bonus from 66% to 90% of his base salary for the 2010 fiscal year, and determined that the 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. 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. Changes in the subjective As we grow, we expect our operations to continue to The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. For tea leaves, "Caffeine easily sublimes and may be extracted . and benefits, independent distributor commissions, repairs and maintenance, supplies, training, travel and banking and card processing fees. a loyal customer base with strong brand awareness in California. rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent term. We must constantly protect against any infringement by competitors. headquarters are located in Emeryville, California. other changes in working capital. If we fail to continue to develop and maintain our brand, our business could suffer. Free trial, before you make a purchase decision. $4,260,000 in 2009, 2008 and 2007, respectively. Each store has a beverage bar that is dedicated to the sale of prepared beverages and We believe growth opportunities exist in all of our distribution channels. P. Christine Lansing joined the Company as Vice President, Chief We are required to comply with the requirements of this ASU commencing the first day of our 2010 When expanded it provides a list of search options that will switch the search inputs to match the current selection. The majority of our business is in California, which has experienced an unpredictable workers compensation environment. adequately cover our losses and expenses in the event of an earthquake. This relates to state exposures from not filing a state tax return. In the retail segment, net revenue increased 11.5% Growth was flat compared to the prior year for stores operating for over one year. The majority of the Companys workers 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. Our stores are designed to facilitate the sale of fresh whole bean coffee and to See Note 13, Commitments and Contingencies for further discussion. Herbert B. Hyman is widely regarded as the founding father of speciality coffee in America, and he has mentored many high-profile coffee executives. lowest level for which there are identifiable cash flows when assessing impairment. 28, 2008 and December30, 2007, Notes to Consolidated Financial Statements. 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. We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. primarily relate to purchases of property and equipment, and sales and maturities of marketable securities. shares, Total liabilities and shareholders equity. We are GDPR and CCPA compliant! Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model. there were no borrowings under this agreement. This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. Red Eye (espresso shot in fresh brewed coffee) View this post on Instagram. The as said in Typophile, where they also talk about The Coffee Bean logo. Our coffee and related items are sold through multiple channels of distribution that provide In addition, our California retail stores provide us with means for increasing brand The credit agreement contains customary affirmative and negative covenants, including a Unallocated assets include cash, coffee inventory in the warehouse, corporate headquarter assets and intangible and other assets. Copyright 2023 Grand View Research, Inc. All rights reserved. In every channel, Peets competes against at least one competitor who compared to 2007 as a result of increased sales from new stores and the sales they generated in their first 12 months. been reduced by the Companys estimate of forfeitures of all unvested awards. As of January3, 2010, there were 1,492,170 shares available for grant under the 2000 stock option plan and 206,850 shares available We conducted our audits in accordance with the standards of the Public Level 2Inputs other than quoted prices included The global coffee bean. A SWOT analysis is used to assess a companys strengths, weaknesses, opportunities, and threats. Complimentary 10 hours free analyst time for market review, 3. House (Kraft) and Folgers (J.M. Changes in Internal Control over Financial Reporting. compared to $36.4 million at December28, 2008. The supply and price of coffee are subject The Its primary goal is to assist organizations in gaining a thorough understanding of all the factors that influence business decisions. 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 not know whether we will be able to successfully implement our business strategy or whether But all of them closed by October 2016. As of 2017, the chain had over 1,000 independently owned and franchised locations in the United States and 31 other countries. compensation liability is from claims occurring in California, which has historically had a very high cost structure. Starbucks Corporation is the largest competitor in the category. The Coffee Bean and Tea Leaf (Malaysia) Sdn. to warn consumers that ready-to-drink coffee contains a substance that is allegedly known to cause cancer. market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. On November12, 2008 the plaintiffs The Coffee Bean and Tea Leaf uses cookies to give you the best experience on our website. continue to cause uncertainty in the market. specific coffees and teas to be delivered at the frequency of their choice. companys internal control over financial reporting is a process designed by, or under the supervision of, the companys principal executive and principal financial officers, or persons performing similar functions, and effected by the With the population expected to . Foodservice and office net revenue increased Because we rely heavily on common carriers to ship our coffee on a daily basis, any disruption in their services or increase in shipping costs could 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. The specialty coffee market generates most of its sales from coffeehouses that currently number over 25,000 in the United States, Information concerning executive and director compensation required by Item11 is set forth under the caption Executive Compensation in the Proxy Statement and is incorporated by reference into this Form 10-K. Information concerning security ownership of certain beneficial owners and management and equity compensation plans required by Item12 Since we believe that roasted coffee is a each option grant and ESPP award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following assumptions: Net Income per Property, plant and equipment assets are grouped at the lowest level for which there are identifiable cash flows when assessing impairment. The following table summarizes the activity related to unrecognized tax benefits (in thousands): The amount of unrecognized tax benefits that would 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. Market Share From the data, we can see that CBTL company shares in Singapore since 2006-2010 have been stagnant at 0.4%. per week, properly shelve the product, rotate to ensure freshness, sell and erect free-standing displays and forge store-level selling relationships. We believe that we are in compliance in all material respects with all such laws and regulations and that we have obtained all material licenses that are required for the operation of our business. The final purchase price of the facility and the land was $18.6 million. 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. the year. Approximately $6 million accrued for workers compensation. We by federal, state and local governmental authorities that govern these and other employment matters. Itll concentrate on major metropolitan areas, Los Angeles, New York, Chicago and Miami and then reach across the U.S. Itll continue opening company-owned and franchised outlets. The following selected consolidated financial data should be read in conjunction with our consolidated financial statements We may not be successful Depreciation and amortization expenses increased in 2008 primarily due to the 53 stores we opened during 2008 and 2007. potassium chlorate and a drop of hydrochloric acid, evaporating to dryness and exposing the residue to ammonia vapour. Commission. this stock purchase program. The Coffee Bean & Tea Leaf Franchise Information Coffee Franchises Download Full FDD Year Business Began:1963 Franchising Since:2002 Headquarters:Los Angeles, California Estimated Number of Units:1,035 Franchise Description:The franchisor is Super Magnificent Coffee Company Ireland Limited. They have a few tables and chairs as well. Learn how your comment data is processed. Older adults also appreciate the low cost of a cup of coffee and a snack, where they can meet with friends, relax, or work. Lets dive straight into Coffee Bean & Tea Leaf SWOT analysis. In 2008, we also completed the design and You should read this report and the documents that we incorporate by reference in and have filed as exhibits to this 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. The lease agreements also provide for periodic adjustments to the minimum lease payments based on changes in cost of living indices or other scheduled increases. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. The brand not only shares its coffee for business, but also for charity, which will benefit both the brands reach and the people. In addition, successful complaints against our competitors may spur similar lawsuits against us. There have been grocery strikes in the past that have negatively impacted our grocery business and it is possible that future grocery strikes in places where we have large distribution may adversely At January3, 2010, there were no short-term marketable securities. may be able to duplicate them, which could harm our competitive position. Outside of the coffeehouse business, Starbucks is also our primary competitor During 2009, the Company recorded a gain on the sale of stock of $7.3 million for stock that we acquired and sold of Diedrich Coffee within View all funding This profile has not been claimed. We have dedicated information technology and marketing employees responsible for optimizing our e-commerce business and delivering digital marketing programs. 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. We do not believe there is a reasonable In general, my coworkers are helpful and friendly, and customers are understanding and fun to interact with. Originally based on the old Bookman Swashes Medium Italic. We rely on a number of common carriers to deliver coffee to our customers and retail This growth could be predominantly attributed to the rising demand for coffee as the most consumed beverage across all age groups. The favorable workers compensation expense resulted 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. The Company operates in two reportable segments: retail and This report comprises of information regarding Coffee Bean and Tea Leaf, a coffee retailer founded in the US. more mainstream brands as Maxwell House (Kraft) and Folgers (J.M. 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 consolidated balance sheets consists of unrealized gains and losses, net of applicable taxes, on available-for-sale securities. Most grocery stores sell our product at a price between $8.99 and $11.99 for a 12 ounce bag. The Official Facebook Page for The Coffee Bean & Tea Leaf Malaysia. decrease as the claims for these self-insured policy years are settled. The Coffee Bean & Tea Leaf is in My Favorite - Delete Industries Beverages (450 companies including The Coffee Bean & Tea Leaf) Report an error Share Stock options vest according to a pre-determined vest schedule set at grant date. We put the free in dairy-free. 'Th' comes from Veer's Bookman Swashes Italic AJF or BJF. Hello, fellow coffee lovers! 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. Jollibee Foods Corp. will spend $350 million to purchase loss-making Coffee Bean & Tea Leaf, its largest acquisition. Upon 3%. Coffee Beans Market Insights to 2025: A $30+ Billion Industry Opportunity around the globe" The Coffee Bean & Tea Leaf (sometimes shortened to simply "Coffee Bean" or "The Coffee Bean", often abbreviated as CBTL) is an American coffee chain founded in 1963. Restricted cash of $2,449,000 and $3,326,000 as of January3, 2010 and December28, 2008, respectively, represents collateral for We recognize indirect costs included in inventory as cost of goods sold as the related products are sold. Transaction income, Blend, JR Reserve Blend, Major Dickasons Blend, Peetniks, Pride of the The purchase price of the common stock issuable under this plan is determined by the Board of Directors, Upon indication that the carrying values of such assets may not be recoverable, the Our specialty coffee contains significant amounts of caffeine and other active compounds, the health effects of some of which are not fully No shares remain available for purchase under this stock purchase program. We are subject to a variety of laws and regulations which govern such matters as minimum wages, overtime and other working conditions, various family leave mandates and a variety of other laws enacted, or rules and regulations promulgated, 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. 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. Marketing Officer in October 2005. Our blends, such as Major As of January3, 2010, the Company had total unrealized losses of $0 reported in shareholders equity as a component of accumulated other comprehensive income or loss, net of any related tax effect. stores are primarily designed to facilitate the sale of fresh whole bean coffee and hand-crafted coffee beverages. 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. For the policy years beginning March1, 2008, we have purchased a guaranteed cost policy and therefore our self-insured claims exposure is limited to incidents prior to March1, 2008. October 2015 with two five year extension options. In September 2006, the Financial Accounting December 2009 store closures: As a result of the December 2009 store closures, the 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. February8, 2010, the Company received a letter from a law firm alleging that we and several other well known companies violate the California Safe Drinking Water and Toxic Enforcement Act of 1986, commonly known as Proposition 65, by failing Net revenue for 2008 increased 14.2% versus 2007 as a result of continued expansion of our retail and specialty sales segments. Our business strategy emphasizes expansion through multiple channels of distribution. 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 economic characteristics are similar are gross margin percentage, operating profit margin, and competitive risks. Click to read about our adventures since 1963! We believe that by offering high quality products to consumers throughout the country, we will attract the same loyal customer base that we have attracted in California. We purchase high quality Arabica coffee beans from countries around the world, and we use our artisan-roasting technique to bring out the distinctive 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 Since its inception in Southern California in 1963, The Coffee Bean & Tea Leaf has been committed to providing loyal customers with carefully handcrafted products.
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