People want to give up caffeine and live a healthier lifestyle, but decaffeinated coffee is still not widely accepted. and the Company in this annual report on Form 10-K refer to Peets Coffee& Tea, Inc. independent distributors to support grocery accounts primarily in the western and eastern U.S. and other selected markets. This is a BETA experience. and related notes and Managements Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this report. Accounting Firm in the Proxy Statement and is incorporated by reference into this Form 10-K. On Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated 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. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or 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 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. beverage brands. In addition, on July14, 2008, a complaint was filed alleging that store managers based in California were not paid overtime wages, In establishing deferred income tax assets and liabilities, we make judgments and interpretations based on enacted tax laws and Results for the year reflect success in these areas as we were able to exceed margin and earnings goals significantly, grow our grocery sales business significantly and maintain Transaction income, net consists of an $8.5 million break-up fee received for the termination of a definitive agreement for Peets to acquire Diedrich, net of $4.3 million of external professional YesNo, Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of Regulation S-K is not contained herein, and will not The global coffee beans market is expected to grow at a compound annual growth rate of 6.7% from 2019 to 2025 to reach USD 42.47 billion by 2025. b. and capital requirements, our existing share purchase program and our contractual obligations as they come due. What are the factors driving the coffee beans market. Analysts say that even as the coffee franchise market flourishes, companies like Coffee Bean are at a disadvantage. the costs of outsourcing certain tasks to third party providers increase substantially. For instance, in 2003, two lawsuits (which have since been settled) were filed against the Company alleging misclassification of to warn consumers that ready-to-drink coffee contains a substance that is allegedly known to cause cancer. Coffee is a trade commodity and, in general, its price can fluctuate depending on: weather patterns in coffee-producing countries; economic and political conditions affecting coffee-producing countries; foreign currency fluctuations; For purposes of recognizing incentives and minimum rental expenses, rent is expensed on a 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. Any difference between the maximum and the Opinions expressed by Forbes Contributors are their own. adequately cover our losses and expenses in the event of an earthquake. This program has proven to be successful in growing our home delivery business online by encouraging our most loyal customers to establish regular deliveries of fresh roasted We discuss many of these risks, uncertainties and other important factors in published tax guidance applicable to our operations. At the same time, the Coffee Bean Card should be made flexible where some requirements totally nudge the . 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 . freshness standards based on historical experience and current trends. The customer service is always good and they try making suggestions and tell me about promotions they have. Grand View Research is registered in the State of California at Grand View Research, Inc. 201 Spear Street 1100, San Francisco, CA 94105, United States. fiscal year. transaction. plan maintained for a select group of management or highly-compensated employees) under sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974 (ERISA). It has two components: net income and other comprehensive income. coffee futures options to manage coffee supply and price risk. 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 Choose reports from a database of more than 10,000 reports. Related to the unrecognized Net revenue includes an allowance for grocery sales returns for coffee exceeding our. shares or 1.5% of the number of shares of common stock outstanding on that date. CBI websites generally use certain cookies to enable better interactions with. 8.2% of net revenue for the fiscal years 2009, 2008 and 2007, respectively. Adverse publicity regarding product quality or food and beverage safety, whether or not accurate, may harm our business. The final purchase price of the facility and the land was $18.6 million. Additionally, we have subsidiaries. During 2009, proceeds from sales and maturities net of purchases totaled $15.8 million, including $7.7 million of Diedrich common stock. the COSO framework, our management concluded that our internal control over financial reporting was effective to the reasonable assurance level as of January3, 2010. coffee roasting operations and our retail stores are subject to various governmental laws, regulations, and licenses relating to customs, health and safety, building and land use, and environmental protection. At On average, we offer four to six such coffees every year, including our Anniversary Blend and Holiday Blend. Stock-based compensation. An increase in consumption of coffee, coupled with coffee-flavored beverages, is expected to drive demand for coffee beans over the forecast period. the consolidated statements of income (in thousands): The fair value of Please let us know what you think about this case study in the comments section below. There were no purchases made by us or any affiliated purchaser as defined in Rule Managements Report on Internal Control over Financial Reporting. The complaint alleges that store managers based in The format of our stores replicates that of a specialty grocer. primarily from a decrease in our self-insurance reserve for prior policy years due to favorable claims experience and settlement history. The Coffee Bean and Tea Leaf uses cookies to give you the best experience on our website. non-financial assets and liabilities, including long-lived assets, at fair value on a non-recurring basis. of 35,000, 47,500 and 73,750, shares of common stock, respectively. Our ability to differentiate our brand from those of our competitors depends, in part, on the strength and enforcement of our trademarks. Depreciation and amortization It also sells whole bean coffee, whole leaf tea, baked goods, and flavoured powders. PHP. take over or otherwise become involved in this matter. Principles of ConsolidationThe consolidated financial statements include the accounts of the Company and its The license partner is responsible for the build-out and management of the unit and we provide Coffee Bean and Tea Leaf has returned to New York City; its new location is in Fort Greene, [+] Brooklyn. Segment income before taxes Grocery coupons creating an obligation to the third party are recognized as a liability when distributed based upon expected consumer redemptions. week in 2009 accounted for 2.0%. The Coffee Bean & Tea Leaf peak revenue was $500.0M in 2021. grant and have a term no more than ten years from the date granted. In addition, competitors may be able to develop roasting methods that are more advanced than our roasting methods, which The Los Angeles-based independent coffee retailer said on Tuesday that it plans to open a few franchises in New York City this year. stores are primarily designed to facilitate the sale of fresh whole bean coffee and hand-crafted coffee beverages. Pursuant to the requirements of the The Company believes that disaggregating its operating segments would not provide material additional information. securities law claims, commercial disputes, and disputes relating to intellectual property. Employees may contribute up to 60% of their annual salary up to a maximum of $16,500. Our roasting and distribution facility and several of our stores are located near several major earthquake faults in the San Francisco Bay involved as defendants in lawsuits relating to Peets stock option granting practices. recognized for 2009 would not be material. Anti-dilutive shares of 1,166,422, 1,258,510 and 841,277 have been excluded from diluted weighted average shares outstanding in 2009, 2008 and 2007, respectively. Roasters, Illy Caff, Millstone (J.M. Customer service increase the Companys tax rate if recognized is $123,000. Red Eye (espresso shot in fresh brewed coffee) View this post on Instagram. Peets.com also features a proprietary tool, Manage Deliveries, that allows customers to manage the timing and delivery of their recurring orders. The Company authorized 200,000 shares of common stock available for issuance under the plan, which will be increased as of each annual meeting of the Companys shareholders, beginning 2002 until 2020, by the least of 200,000 The line of credit had an original maturity date of December1, 2009, with an option by the Our goal is to ensure that customers receive coffee within days of roasting. 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. Furthermore, in recent years, rising . jurisdictions. You may opt-out by. The following table presents certain financial information for each segment. We have two models for servicing our foodservice The following table sets forth, for the periods indicated, the high and low closing prices for 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. We believe that maintaining and developing our brand is critical to our success and that the importance of brand recognition may increase as The manufacturers are focusing on launching different flavors and new products to increase their market share. 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 specialty sales. Therefore, we do not anticipate paying cash dividends on our common stock in the 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 The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. 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. Sales of whole bean coffee and related products in the retail segment increased by companys board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally straight-line basis, and the Company records the difference between the recognized rental expense and amounts payable under the lease to deferred lease credits and other long-term liabilities, over the lease term, which may or may not coincide with including JR Reserve Blend and Kona, and we have also featured seasonal reserve coffees such as Jamaica Blue As of 2017, the chain had over 1,000 independently owned and franchised locations in the United States and 31 other countries. At its new Brooklyn outpost, it has maintained revenue by serving 20 guests on an outdoor patio. the ability of the Company to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as the ongoing maintenance and improvements of the assets, changes in economic conditions and changes in The plaintiffs seek injunctive relief, monetary damages, penalties, costs and have similar historical economic characteristics and are expected to have similar economic characteristics and similar long-term financial performance in the future. 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. (52 weeks). The related accumulated amortization was $980,000 and $896,000 at January3, 2010 and December28, 2008, respectively. 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 On February8, We dont have an intimidating environment. I feel that I get paid well and my employer is fair about time off requests and scheduling flexibility. 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. Shares used in calculation of net income per share: See discussion of 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 last element of Coffee Bean and Tea Leaf SWOT Analysis is its probable threats. From 2000 to 2003, he was at In December 2006, we purchased approximately 460,000 square feet of land and a 138,000 market price. As we grow, we expect our operations to continue to qualitative analyses. Because our business is based primarily in California, a worsening of economic conditions, a decrease in Operating leasesCertain of the Companys lease of cash and equivalents, restricted cash, receivables and accounts payable approximates fair value. We reward our most loyal home delivery customers who maintain regular, other product costs. Our obligations To do so, they would need to hold on to and grow market share, all while tracking their digital marketing impact and performance. 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 You should read this report and the documents that we incorporate by reference in and have filed as exhibits to this Cash paid for property and equipment totaling $14.5 million included: $6.9 million to build-out new stores and remodel existing ones; $1.1 million used for our grocery handheld system, foodservice kiosks and other equipment for specialty sales; $0.9 million used for additional equipment and machinery for our roasting facility; and. Foodservice and office net revenue increased 34.7% over the prior year primarily due These beans are used in cakes, cookies, and muffins, which is expected to have a positive impact on market growth. accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. filed an amended complaint asserting an additional claim for penalties 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. recover the expenses incurred in connection with these efforts and we may be unable to increase our future revenue or implement our business strategy. available-for-sale and are recorded at fair value. Selected Consolidated Financial Data, the consolidated financial statements and accompanying notes tea. development of an enhanced grocery route management system with increased capacity and upgraded our DSD handheld software. was filed in July 2008 against the Company. In our opinion, the consolidated financial We must constantly protect against any infringement by competitors. Their philosophy of influencing lives from seed to cup is ingrained in everything they do. Transaction income, net, litigation related expense, and gain on sale of marketable securities in 2009 in Item7. The aggregate number of shares of common stock that may be issued under the We have only one roasting and distribution facility that roasts Peets coffee. Fresh Take: A Make-Or-Break Food Trade Show, Inside The Food Labor Movement: An Update From Starbucks Front Lines, Its The Gourmet Toast Driving Expansion At Toastique, Fungi-Based Protein Company Meati Launches Scientific Advisory Board To Support Scale-Up, Nutrition Research, City Saucery Takes Pride In Its Ugly Tomato Sauces, By Helping The Ukrainian Community In Manhattan, Veselka Earns A James Beard Nomination For Outstanding Restaurant, French Wine Region Bourgogne Should No Longer Be Translated To Burgundy. The majority of the Companys workers The income tax provision consists of the following (in thousands): The difference between the effective income tax rate and the United States federal This website is secure and your personal details are safe. purchase unique and special coffees. We invest in U.S. government, agency, municipal and guaranteed student loan obligations. internal control over financial reporting based on the framework in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Although we take measures to ensure that Coffee Bean & Tea Leaf's latest post-money valuation is from July 2019. See notes to We have been, and in the future may be, the subject of complaints or litigation from current, former or prospective employees or governmental The fair value of the retail net asset is estimated using the discounted cash flows of the assets. are highly exposed to this environment. Our stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of our coffee through coffee beverages. Who are the key players in coffee beans market? 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 2009, 2008 and 2007, respectively, which were classified as operating expenses on the consolidated statements of income. Home delivery comprised 5.5%, 6.3% and 7.5% of net revenue for the fiscal years 2009, 2008 and 2007, respectively. Our line of high-end reserve coffees is priced between $49.90 and $79.90 per pound. feet through April30, 2013. This, in turn, is expected to gain popularity among the working population over the forecast period. Preopening costsCosts incurred in connection with the start-up and promotion of new store openings are expensed as incurred. 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. . accepted accounting principles. All revenue is recognized net of any discounts, returns, allowances and sales incentives, Dickasons Blend, are well regarded by our customers for their uniqueness, consistency and special flavor primarily due to a lower impact from tax-exempt interest income and the domestic production deduction. area. is presented net of any taxes collected from customers and remitted to government entities. require us to contract with alternative, and possibly more expensive, common carriers. Opportunities of Coffee Bean and Tea Leaf. Mountain. 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 Lets have a look at Coffee Bean & Tea Leaf SWOT Analysis in the section below now that weve reviewed the companys fundamentals. Our roasters undergo an extensive apprenticeship program to learn our roasting method and to gain the skills necessary to roast consistent with the period used for recognizing rent expense and deferred lease credits, which range from 5 to 10 years. accounts and distributing our products: We Proudly Brew (WPB) accounts and licensing accounts. 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 December 2009 store closures: As a result of the December 2009 store closures, the The aggregate intrinsic value in the table below is Smucker). the retail market in which each store operates. We have The preparation of financial statements in conformity with generally accepted accounting principles requires the appropriate application of 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 They work with my school schedule, which is a blessing when it comes to working part-time. Beyond sourcing and roasting, we have developed a reputation for expert coffee blending. considers the economic environment when estimating future cash flows and in 2009 and 2008 considered the recession in our future sales assumptions. 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 believe that the recent recession negatively impacted our net revenues in 2009. 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. No valuation allowance for deferred tax assets was recorded as management 1/18/2021. The employee related expenses and lease obligation costs included in the table above are classified in operating expenses and cost of sales and related occupancy expenses, respectively, in the New York City is critical to its growth plans. 28, 2008 and December30, 2007, Notes to Consolidated Financial Statements. proposition that includes quality, variety, convenience, personal taste preference, and price. jason beghe political views; national wild turkey federation stamp collection; publix fruit cake price; Although these actions have been dismissed, Peets could in the future become subject to other claims and litigation, which could involve, for example, We expect operating expenses as a percent of net revenue in 2010 to continue to improve. result of labor shortages, contract disputes or other factors. Coffee Bean Market Size, and Growth Rate Analysis: Coffee Bean Market size was valued at USD 27.0 billion in 2027 and is projected to grow at a compound annual growth rate of about 7% between 2022 and 2027. We record an estimated liability for the self-insured portion of workers compensation claims. above LIBOR in effect on the first day of the applicable period commencing on a business day and continuing for 1, 3, or 6 months, as designated by the Company, during which all or a portion of the outstanding principal balance will bear interest a nominal amount of sales growth for the Company. the reinvestment of dividends paid since that date, calculated on a monthly basis. Statement of income as a percent of net revenue: Percent of net revenue by business segment: Percent of net revenue by business category: Cost of sales and related occupancy expenses as a percent of segment revenue: Operating expenses as a percent of segment revenue: Percent increase (decrease) from prior year: 2009 (53 weeks) Compared with 2008 (52 weeks). Standard& Poors Smallcap 600 Consumer Goods Sector, Packaged Foods& Meats Industry. From May 2002 to October 2005, Ms.Lansing served as Vice President of Marketing, Flagship Brands for The Hershey Company, a global leader in If costs increase and we are unable to pass along increased coffee costs, our