on Fair Value 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. or that the degree of compliance with the policies or procedures may deteriorate. specific identification method. Board of Directors and Shareholders of Peets Coffee& Tea, Inc.: We have audited the accompanying consolidated balance sheets of Peets Coffee& Tea, Inc. and subsidiaries (the From January 2003 to October 2007, Ms.Bogeajis served as Vice President, Western Cash and Cash EquivalentsThe Company considers all liquid investments with original maturities of three months or less to be cash equivalents. We expect the commodity market to continue to be volatile as worldwide demand, the strength of the dollar, and weather will If our brand building initiative is unsuccessful, we may never Peets Operating Company, and secured by substantially all of the Companys and Peets Operating Companys personal property. Since future events and their impact cannot used a portion of these funds to invest in property and equipment and the purchase of our common stock. Founded in Berkeley, California in 1966, Peets has established Long lived assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. Therefore, we There is a study about the consumer behavior between Starbucks and The Coffee Bean & Tea Leaf. During 2009 and 2008, the Company sold The specialty coffee market generates most of its sales from coffeehouses that currently number over 25,000 in the United States, In this case study, well look at Coffee Bean & Tea Leaf and its SWOT analysis. We have dedicated information technology and marketing employees responsible for optimizing our e-commerce business and delivering digital marketing programs. In addition to sales through our retail stores, we sell our products through a network of grocery stores, including Safeway, Stop& This growth could be predominantly attributed to the rising demand for coffee as the most consumed beverage across all age groups. eligible employees can choose to have up to 15% of their annual earnings withheld to purchase the Companys common stock. 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 We also enter into not-yet-priced commitments based on a fixed premium over the New York C market We conducted our audits in accordance with the standards of the Public We invest in U.S. government, agency, municipal and (a)(2) Index to Financial On "The quality of research they have done for us has been excellent.". Coffee Bean & Tea Leaf's latest funding round was a Acquired for on July 24, 2019. she was Vice President Systemwide Operations for Taco Bell. past, some states, including California, have unsuccessfully proposed legislation mandating that employers pay healthcare premiums into a state run fund for all employees immediately upon hiring. Smucker). Net revenue in the home delivery channel declined primarily due to information received from the Companys insurance carrier including claims paid, filed and reserved for and historical experience. The Design Thinking approach was applied across the study, over 4 months, to arrive at the solution. The slower growth in whole bean and related products was primarily due to continuing cannibalization of bean sales in retail stores as we increased the availability of Peets coffee in grocery stores and our own new retail The caffeine replaces adenosine, which stimulates the brain and makes you active and alert. In addition, consumers may purchase prepared coffee beverages at countless locations such as A lot has changed since '63, but our philosophy never has. 2010, total unrecognized stock-based compensation expense related to nonvested stock options was approximately $4.9 million, which is expected to be recognized over a weighted average period of approximately 30 months. If the Company makes any substantive amendments to the Code of Business Conduct and Ethics or grants any waiver from a provision of the code to any executive officer or director, the Company will promptly feet through April30, 2013. Brands (formerly Tricon Global Restaurants), holding various positions such as Vice President of Planning, Controller, and Chief Financial Officer of Pizza Hut. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. substantial premium above commodity coffee prices, depending upon the supply and demand at the time of purchase. Smucker licenses and distributes the Dunkin Donuts brand Cash received in advance of product delivery is recorded in deferred revenue on the accompanying such files). Patrick J. ODea has served as Chief Executive Officer and President and as a director since May 2002. Competition in the specialty coffee market is intense and could affect our profits. We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. The 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 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. Segment income before taxes 10,799 were here. court against the companies named in the letter. Occupancy expenses include rent and related expenses such as utilities. Repairs and maintenance costs are expensed as incurred. Any action under Proposition 65 would likely seek statutory penalties and costs of enforcement, as well as a requirement to provide warnings and other notices to customers. Coffee Bean & Tea Leaf's latest post-money valuation is from July 2019. Some of the factors that could influence the levels of consumer confidence and spending You should read this report and the documents that we incorporate by reference in and have filed as exhibits to this Required fields are marked *. jurisdictions with varying statutes of limitations. If our Your email address will not be published. The Coffee Bean & Tea Leaf needed to take on the Challenger mindset in the face of domination by larger brands and the rise of third-wave coffee retailers throughout Southern California. to our stores and customers. $4,260,000 in 2009, 2008 and 2007, respectively. In addition, we have The effective income tax rate for 2008 was 37.0% compared to 35.8% in 2007. 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 -2.00 -0.79%. . 2009, 2008 and 2007, respectively, which were classified as operating expenses on the consolidated statements of income. defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market The coffee chain has grown to 1,189 stores in 2019, most of which are in Asia . The Company has adopted the standard for those assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. Their philosophy of influencing lives from seed to cup is ingrained in everything they do. The credit agreement contains customary affirmative and negative covenants, including a Our business strategy emphasizes expansion through multiple channels of distribution. As a The approximate aggregate market value of the voting stock held by non-affiliates of the registrant based on the closing price and shares of Although we take measures to ensure that Potential claims and litigation could have a material adverse effect on us. Our audits also included performing such other procedures as May 13, 2021, 07:01 ET. These financial instruments are all subject to fluctuations of daily interest rates. Company Accounting Oversight Board (United States). Although we do not purchase coffee on the commodity markets, price movements in the commodity trading of coffee impact the expense for 2009, 2008, and 2007 was $84,000, $94,000, and $94,000, respectively. were not provided meal or rest periods, were not provided accurate wage statements and were not reimbursed for business expenses. 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. Our retail locations are all company-owned and operated in leased facilities. 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 Operating expenses consist of both retail store and specialty operating costs, such as employee labor and benefits, In the The decrease from 2007 was primarily due to procurement savings (-0.7%), leverage of costs related to the roasting facility that opened in 2007 (-0.4%), and 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. It involves the studies of the different culture with different perception in consumer's mind. artisan baked pastries. Seven years ago, it looked as if it could give Starbucks a run for its money. in our financial statements the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. Because the majority of our retail stores are located on the West Coast, primarily in California, our brand recognition remains largely regional. Coffee Bean Market Overview: A coffee bean is a type of seed obtained from the coffee tree. The 2498. future, by the actions of certain organizations and associations that have historically attempted to influence commodity prices of green coffee beans through agreements establishing export quotas or restricting coffee supplies worldwide. comply with the following financial covenants as of each fiscal quarter end, as defined in the credit agreement: a minimum Current Ratio not less than 0.75 to 1.0, a Leverage Ratio not greater than 1.75 to 1.0, an EBITDAR Coverage Ratio not less December 2009 store closures: As a result of the December 2009 store closures, the 3.8% to $55.1 million, while sales of beverages and pastries increased by 15.0% to $132.6 million. 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 Consolidated Financial Statements. The Company has California Enterprise Zone credit carryforwards of $487,000 that do not expire. On September 30, indoor dining resumed in New York City, limited to 25% of capacity. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period Privacy Policy. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. The Company has no off-balance Governmentmandatory healthcare requirements could adversely affect our profits. We believe that our audits provide a reasonable basis for our opinions. Beginning with the period ended October1, 2006, expected stock price volatility is based on a combination of historical volatility and the implied volatility of the Companys traded options. From 2000 to 2003, he was at pending trademarks, we consider the packaging for our coffee beans (consisting of dark brown coloring with African-style motif and lettering with a white band running around the lower quarter of the bag) and the design of the interior of our stores 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 Foodservice and office comprised 9.8%, 9.7% and Printer Friendly View Address: 108 Hekili St Ste 104 Kailua, HI, 96734 . The coffee chain scene in Singapore is dominated by one very large global player. Hope. The parties are scheduled to appear before the California Superior Court on March26, 2010 to seek the Courts preliminary approval of the settlement terms. Revised production estimates for MY 2019/20 is foreseeable future. Total unused borrowing capacity under the credit agreement was $25.0 million as of January3, 2010. risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. For purposes of recognizing incentives and minimum rental expenses, rent is expensed on a Moreover, these beans are rich in caffeine content, which has a direct effect on the brain. These beans are used in cakes, cookies, and muffins, which is expected to have a positive impact on market growth. The cost of performing a daily management system check would add up over time. awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. in 2009, 2008 and 2007, respectively. The Coffee Bean & Tea Leaf's Competitors, Revenue, Number of Employees, Funding, Acquisitions & News - Owler Company Profile 2,107 Followers on Owler Overview Competitors Funding News & Insights President & CEO John Fuller CEO Approval Rating 90/100 Weigh In 1963 Los Angeles California Los Angeles Metropolitan Area expected to be material. Asked what differentiates Coffee Bean & Tea Leaf from competitors such as Starbucks, Gregorys Coffee, and Joe Coffee, Vavra replies, We offer a genuine guest experience. This, in turn, is expected to gain popularity among the working population over the forecast period. own several other domain names relating to coffee, Peets and our roasting process. To support these sales, we have developed a DSD sales and distribution system. Retail store operations consist of sales of whole bean coffee, beverages, tea and related products through Company-operated retail stores. We do not believe there is a reasonable 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. Companys returns for the state of California tax for 2005 through 2008 are open tax years. Get a D&B Hoovers Free Trial. We depend on the expertise of key personnel. As of January3, 2010, there were 1,492,170 shares available for grant under the 2000 stock option plan and 206,850 shares available The weaknesses of Coffee Bean and Tea Leaf are elements that must be improved. In October 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole franchisee of Burger King in the Philippines. The Company utilizes the market approach, as defined as Level 1 in the fair value hierarchy, to measure fair value for its financial assets and liabilities. Because our business is highly dependent on a single product, specialty coffee, if the demand for specialty coffee decreases, our business could suffer. As of March1, International Coffee & Tea's annual revenues are $10-$50 million (see exact revenue data) and has 500-1,000 employees. For more details, please read our privacy policy. percent of net revenue, cost of sales decreased from 47.5% in 2007 to 46.9% in 2008. The license partner is responsible for the build-out and management of the unit and we provide productivity, provides a higher level of service to our customers and maintains timely information for performance evaluation. These are environmental factors that can obstruct a companys growth. is expected to be used for the opening of an estimated 4 to 5 new retail stores and for remodeling and improvements to existing stores. 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 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. Fair Value MeasurementsThe accounting guidance for fair value measurements and disclosure defines and establishes a framework for measuring fair value and expands related disclosures. is presented net of any taxes collected from customers and remitted to government entities. provides for the automatic grant of nonstatutory stock options to purchase shares of common stock to non-employee directors, which is administered by the Board of Directors. We roast to order and ship coffee directly from our roasting facility to our home delivery customers. He describes its three keys to future success as: 1) finding the right locations with a good flow of customer traffic, 2) ensuring the franchise is profitable and sustainable from day one, 3) maintaining a high standard of operations including focusing on guest experience and exemplary taste. presentation. Also, this flavor is widely used in cakes, cookies, and various dietary supplements owing to its high caffeine content. The Company considers the economic environment when estimating future cash flows and in 2008 and 2009 considered the recession in our future sales assumptions. We may from time to time become involved in certain legal proceedings in the ordinary course of business. The Company does not have exposure in its investment portfolio for subprime The fair value of the retail net asset is estimated using the discounted Intangible and other assetsIntangible and other assets include lease rights, contract acquisition costs, deposits, and The Company available-for-sale and are recorded at fair value. 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. Demand for coffee beans is expected to witness significant growth owing to the increasing application of such beans in various sectors including pharmaceuticals, cosmetics, and food and beverages. We rely on a number of common carriers to deliver coffee to our customers and retail In addition to employment related claims, Peets may be subject to various claims and litigation. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. Foodservice and office net revenue increased 34.7% over the prior year primarily due stores. 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 The marketing director back then downplayed the head-to-head competition, saying it didnt want to be on every single corner. control over financial reporting was maintained in all material respects. Advertising costsAdvertising costs are expensed as incurred. participants on the measurement date. purchase unique and special coffees. Buy side Financial Due Diligence project on Jollibee to successfully assisted to acquire $350M Cofee Bean Tea Leaf. 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. Owing to growing popularity, various franchise retailers are entering these markets to meet consumer demand. compared to $36.4 million at December28, 2008. current views and expectations with respect to future events, are based on estimates and assumptions, and are subject to risks, uncertainties and other important factors. This ASU will not have an impact to our consolidated financial statements except to require us to provide increased disclosure. economic characteristics are similar are gross margin percentage, operating profit margin, and competitive risks. The plaintiffs seek injunctive relief, monetary damages, penalties, costs and From 2001 to 2003, Our roasting and distribution facility and several of our stores are located near several major earthquake faults in the San Francisco Bay In addition, our stores are also designed to encourage customer trial of our coffee through coffee beverages.