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. Accounting Firm in the Proxy Statement and is incorporated by reference into this Form 10-K. Moreover, the penetration of various pharmaceutical companies such as Novartis and Allergan is expected to fuel demand for coffee beans over the forecast period. 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. 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. for the fiscal year ended January3, 2010, (Exact Name of Registrant as Specified in Its Charter), (Address of Principal Executive Offices)(Zip Code), (Registrants telephone number, including area code). From 1984 to 1995, he was with Procter& Gamble, where he marketed several of the companys snack and The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. January3, 2010 and December28, 2008, the Company operated 192 and 188 retail stores, respectively, in California, Colorado, Illinois, Oregon, Massachusetts and Washington. In 2008, we completed conversion of this facility from our roasting plant into office space. People want to give up caffeine and live a healthier lifestyle, but decaffeinated coffee is still not widely accepted. Copyright 2023 Grand View Research, Inc. All rights reserved. WPB accounts are foodservice accounts where Peets supplies the equipment and product to brew and resell our products. 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. The coffee chain has grown to 1,189 stores in 2019, most of which are in Asia . register these trademarks and trade dress, and thus cannot rely on the legal protections afforded by trademark registration. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated Showing its resurgence, it recently debuted a new Coffee Tea & Bean outlet in the thriving Fort Greene area of Brooklyn on August 28, 2020. management and our coffee roasters and purchasers. We use business intelligence software to better support and analyze our business in all channels. site you are consenting to these choices. Competition in the specialty coffee category is fragmented among various distribution channels with the major At its new Brooklyn outpost, it has maintained revenue by serving 20 guests on an outdoor patio. Executed Yield Reconciliation Project to verify unknown losses and sifted for solutions to . 2010, we 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 to warn consumers that 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 There is no balance for closed store reserves as of December28, 2008. Proposal 1Election of Directors in the Companys proxy statement relating to its 2010 Annual Meeting of Shareholders (the Proxy Statement) and is incorporated by reference into this Form 10-K. There is always a risk that one of these competitors could undertake a strategy that involves very high spending or discounting that would negatively impact our operating results. The We believe We purchase tea directly from importers and brokers and store and pack the tea at our facility in Alameda, California. Their primary market is adults, young youths, and teenagers, which could be a major weakness because they would lose their most importantly potential customers. 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 Cost of sales and related occupancy expensesCost of sales and related occupancy expenses consist primarily of coffee and The 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 Published on 7/22/2019 at 5:44 PM "Friends" drinks collection | The Coffee Bean & Tea Leaf 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 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. Forward-looking statements include statements about: our expectations regarding the cost and availability of high quality Arabica coffee beans; our expectations regarding the uninterrupted operation of our roasting and distribution facility; our ability to successfully implement our business strategy including our ability to market our products and increase our brand recognition; the impact of the current recession or a worsening of the United States and global economy on our business; the impact of potential litigation or disputes on our business; our ability to continue leasing our retail locations and obtain leases for new stores; our ability to promote and enhance our brand; our ability to hire and retain well-qualified management and other personnel; our ability to attract and retain customers; our expectations regarding consumers tastes and preferences; and. Since we believe that roasted coffee is a We believe that the recent recession negatively impacted our net revenues in 2009. Upon Moreover, they are adopting various pricing strategies to increase their sale. A SWOT analysis is used to assess a companys strengths, weaknesses, opportunities, and threats. For instance, in 2003, two lawsuits (which have since been settled) were filed against the Company alleging misclassification of Starbucks Corporation is the largest competitor in the category. assets and nonfinancial liabilities. The content on any website referred to in this report is not incorporated by reference into this report unless expressly noted. Printer Friendly View Address: 108 Hekili St Ste 104 Kailua, HI, 96734 . terms are included in the straight-line computation. used to manage our operations and increase the productivity of our workforce. 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. Net revenue for 2008 increased 14.2% versus 2007 as a result of continued expansion of our retail and specialty sales segments. In addition, successful complaints against our competitors may spur similar lawsuits against us. feet through April30, 2013. (52 weeks). the United States and global economy could materially adversely affect our business. Hope. elsewhere in this report. The impact of a major earthquake faults in the San Francisco Bay area on our facilities, infrastructure and overall operations is difficult to predict, and an earthquake could seriously disrupt our entire business. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued). We put the free in dairy-free. We do not anticipate making investments in public companies or yielding similar gains in the future. Companys fiscal year end is the Sunday closest to December31. These distributors have their own sales and account management resources. Our effective rate increased 1.2% primarily due to a lower impact from the domestic production deduction and decreased Dublin, March 09, 2020 (GLOBE NEWSWIRE) -- The "Global Coffee Beans Market - Forecasts from 2020 to 2025" report has been added to ResearchAndMarkets.com's offering. Fixed-Price and Not-Yet-Priced Purchase Commitments, We enter into fixed-price purchase commitments in order to secure an adequate supply of quality green coffee beans and fix our Awaken your everyday with The Coffee Bean & Tea Leaf. The points represent index levels based on the last trading day of the Companys fiscal year. We have been, and in the future may be, the subject of complaints or litigation from current, former or prospective employees or governmental Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. 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. sheet arrangements that require disclosure pursuant to Item303(a)(4) of Regulation S-K. We do not believe that inflation has had a material impact on our results of operation in recent years. Professional fees associated with our stock option review and related litigation were $1.4 million in 2007 and tax benefits noted above, the Company accrued penalties and interest of $15,000 for each of 2009, 2008 and 2007. 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 The last element of Coffee Bean and Tea Leaf SWOT Analysis is its probable threats. . we sell only fresh roasted whole bean coffee and that our retail employees properly prepare our coffee beverages, we have no control over our whole bean coffee products once purchased by customers. other product costs. (iii)a number of shares determined by the Board prior to such date, which number shall be less than (i)and (ii)above. Young people under the legal drinking age are one of the coffee-drinking markets fastest-growing segments. Despite its popularity, the coffee chain logged $21 million in losses. We opened 8 new stores in 2009 and 23 new stores in 2008. The following Consolidated Financial Statements of Peets Coffee& Tea, In addition, we could 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). While coffee commodity costs began to decline in the second half of 2008, costs rose steadily in 2009 and by year end returned to early 2008 28, 2008 and December30, 2007, Notes to Consolidated Financial Statements. actual payment amount based on class participation is not expected to be material. This is expected to fuel demand for robusta beans over the forecast period. Coffee Bean Market Overview: A coffee bean is a type of seed obtained from the coffee tree. The line of credit had an original maturity date of December1, 2009, with an option by the CBI websites generally use certain cookies to enable better interactions with. Founded in Berkeley, California in 1966, Peets has established More than 60% of coffee cultivation is arabica, where Brazil is one of the leading producers in the world. been reduced by the Companys estimate of forfeitures of all unvested awards. The specialty coffee market generates most of its sales from coffeehouses that currently number over 25,000 in the United States, changes in equity during the period, except those resulting from transactions with shareholders of the Company. 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. and the Company in this annual report on Form 10-K refer to Peets Coffee& Tea, Inc. primarily relate to purchases of property and equipment, and sales and maturities of marketable securities. 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. 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. coffee futures options to manage coffee supply and price risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis. office, restaurant and foodservice accounts and Company-owned and operated stores in six states. Although these actions have been dismissed, Peets could in the future become subject to other claims and litigation, which could involve, for example, The Design Thinking approach was applied across the study, over 4 months, to arrive at the solution. Moreover, increasing consumption of coffee-flavored beverages and ice cream is expected to fuel demand for these beans over the forecast period. Accumulated other comprehensive income reported on the Companys The liability is determined based on an actuarial assessment of The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of ASC 718, As of January3, 2010, there were 1,492,170 shares available for grant under the 2000 stock option plan and 206,850 shares available Long lived assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. court against the companies named in the letter. I feel that I get paid well and my employer is fair about time off requests and scheduling flexibility. Our net revenues depend significantly on consumer confidence and spending, which Quote. Most grocery stores sell our product at a price between $8.99 and $11.99 for a 12 ounce bag. We consider our roasting methods essential to 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 The table below shows selected consolidated financial data for our last five fiscal years. A lot has changed since '63, but our philosophy never has. Herbert Hyman founded the company in September 1963 as a coffee service for offices. Analyst Briefing Submitters are 7x more likely to receive a qualified connection. The Coffee Bean & Tea Leaf Malaysia Promotions New Year Adventures Read more Holiday Specials Read more Leaf with Me Read more Latest News A lot has changed since '63, but our philosophy never has. stores in strategic west coast locations that meet our demographic profile and partner with distributors and companies who share our passion for quality and freshness and are willing and able to execute accordingly in the foodservice and office 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. Actual results could materially differ from these estimates and could significantly affect the Companys effective tax rate and cash flows in future years. fiscal year. increase capacity at our roasting facility. 1728 Words. 2. Net cash used in financing activities was $0.9 million in 2009, primarily from the purchase of our common stock, offset by proceeds from Operating expenses as a percent of net revenue for 2008 increased 0.3% to 34.7%. thousands): Legal ProceedingsOn July14, If costs increase and we are unable to pass along increased coffee costs, our Beans are freshly scooped from bins under the counter, weighed on The stock price performance shown in the graph is not necessarily indicative of future price performance. employees or agents deliver fresh goods to our grocery partners. In China, Starbucks alone has more than 1,500 outlets. These costs are shown separately as litigation related expenses in the consolidated statements of income. 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, Alternatively, you can call (855) 409-7410 and follow the prompt compared to 2007 as a result of increased sales from new stores and the sales they generated in their first 12 months. The purchase price of the common stock issuable under this plan is determined by the Board of Directors, grant and have a term no more than ten years from the date granted. As of January3, 2010 and December28, 2008, the Company had $1,015,000 and $1,542,000, respectively, , peets.com, Blend 101, eCup, Espresso Forte, Fresh Fridays, Gaia Organic Blend, Garuda Each store has a beverage bar that is dedicated to the sale of prepared beverages and or (iii)a number of shares determined by the Board prior to such date, which number shall be less than (i)and (ii)above. Master franchising was chosen as the most popular method of entry into distant and culturally diverse markets such as Asia. You should read this report and the documents that we incorporate by reference in and have filed as exhibits to this commodities more or less attractive investment options. chart set forth below was prepared by Research Data Group, Inc., which holds a license to provide the indices used herein. 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 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Americano (hot or iced) Cappuccino (hot or iced) Espresso. [34] Foreign brands in the Philippines [ edit] A Burger King outlet in Baliwag, Bulacan. believes it is more likely than not that all of the deferred tax assets will be realized. 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. Governmentmandatory healthcare requirements could adversely affect our profits. The company is well-known for its Original Ice Blended coffee and tea drinks, as well as hot coffee and iced tea drinks. We are indifferent as to where consumers purchase our coffees and teas, and believe that our specialty and retail segments are synergistic. products. The Company files income tax returns in the U.S. federal jurisdiction and various state 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. The Coffee Bean & Tea Leaf continued on its path toward accelerated growth as it launched the most significant and comprehensive advertising campaign in the brand's history. the ability of coffee-producing countries to agree to export quotas; and general economic conditions that make commodities more or less attractive investment options. Forward-looking statements reflect our the Board of Directors approved a stock purchase program providing for the additional purchase of up to one million shares of the Companys common stock, with no deadline for completion and the Company announced its plan on October28, beverage brands. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Official Facebook Page for The Coffee Bean & Tea Leaf Malaysia. Some of the factors that could influence the levels of consumer confidence and spending . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 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.