Your transaction & personal information is safe and secure. On October27, 2008, 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 In the grocery channel, Kraft and J.M. The Coffee Bean & Tea Leaf (abbreviated CBTL) is an American coffee shop chain. coffee at Peets and make a long-term commitment to our artisan craft. Kapolei, HI. Any significant increase in shipping costs could lower our profit margins or force us to raise prices, which could cause our revenue and Unallocated assets include cash, coffee inventory in the warehouse, corporate headquarter assets and intangible and other assets. Future minimum lease payments required under non-cancelable operating leases subsequent to January3, 2010 are as follows (amounts in thousands): Rent expense was $15,957,000, $14,513,000 and grocery business (0.7%), opening 53 new retail stores in 2008 and 2007 (0.2%), partially offset by favorable workers compensation insurance expense (-0.3%) and other cost savings. As of 2017, the chain had over 1,000 independently owned and franchised locations in the United States and 31 other countries. Hope. Sales of whole bean and related products increased 12.7% to $151.1 million. The license partner is responsible for the build-out and management of the unit and we provide Complaints or claims by current, former or prospective employees or governmental agencies could adversely affect us. Approximately $2.5 million is expected to be used for equipment and machinery to improve effectiveness and Jollibee planned to grow the The Coffee Bean in Asia, where there's a race for coffee supremacy. Although we were ultimately outbid for the business, the transaction resulted in a net gain of $11.5 million due to the receipt of a break-up fee and gains on the sale of Diedrich Coffee stock, net of external professional Customers have several options for where they can buy the product. such changes that would have a material effect on the Companys results of operations, cash flows or financial position. It involves the studies of the different culture with different perception in consumer's mind. The standard describes We purchase high quality Arabica coffee beans from countries around the world, and we use our artisan-roasting technique to bring out the distinctive gains or losses from the sale of these instruments. No valuation allowance for deferred tax assets was recorded as management We currently have 55 company-operated DSD route sales representatives and approximately 180 Act). 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; Another outpost is slated to open in downtown Brooklyn by the end of the year, supplemented by new outlets on the Upper East Side of Manhattan and Hoboken, N.J. planned for 2021. Sales of whole bean and related products increased 11.5% to $168.5 million. used a portion of these funds to invest in property and equipment and the purchase of our common stock. CBI websites generally use certain cookies to enable better interactions with. Amortization Officers of the Registrant.. During 2009 and 2008, the Company sold 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 Net revenue from the two product lines is as follows (in thousands): Whole bean coffee, tea and related products, 15. We have been, and in the future may be, the subject of complaints or litigation from current, former or prospective employees or governmental Home / / coffee bean and tea leaf annual report 2019. coffee bean and tea leaf annual report 2019 . 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 was filed in July 2008 against the Company. See for yourself. 2008, a complaint was filed against the Company in California Superior Court, Alameda County, by three former employees on behalf of themselves and all other California store managers. Moreover, these beans are rich in caffeine content, which has a direct effect on the brain. In late-2019 the coffee chain was acquired by Filipino fast-food group, Jollibee Foods Corp, as part of a deal worth around $350m in late-2019. No purchase commitment. Consolidated Financial Statements included elsewhere in this report. If a competitor infringes on our Because roasted coffee is perishable, we are committed to delivering our coffee under the strictest freshness standards. Additionally, we have days. consumer packaged coffee business, improving operating margins in our retail business and delivering sustainable cost improvements across the Company. 7 Pages. Los Angeles-based Coffee Bean & Tea Leaf will add 14 percent to Jollibee's global sales and expand its base by more than a quarter. October 2015 with two five year extension options. By continuing to use this site you are consenting to these choices. Discounted price for multiple reports across domains, 2. 250.00. effect that such commitments are expected to have on the Companys liquidity and capital requirements in future periods as of January3, 2010: The Company has excluded from the table above uncertain tax liabilities as defined in ASC 740, Unrecognized Tax Benefits, due to tax-exempt interest income. week in 2009 accounted for 2.0%. cost of green coffee beans. The fiscal year ended January3, 2010 included 53 weeks. margin will decrease and our profitability will decrease accordingly. From 1986 to 2000, Mr.Cawley was at PepsiCo/Yum. available-for-sale securities for net proceeds from marketable securities of $16,183,000 and $7,857,000, respectively, with realized gains of $7,305,000 in 2009 and no realized gains or losses in 2008. (Annual sales and employees). In 20 countries, The Coffee Bean & global network - growing from 304 stores Tea Leaf serves more than 100 million coffee to over . Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new control over financial reporting was maintained in all material respects. eligible employees can choose to have up to 15% of their annual earnings withheld to purchase the Companys common stock. 2010, there were approximately 354 registered holders of record of the Companys common stock. she was Vice President Systemwide Operations for Taco Bell. International Coffee & Tea's annual revenues are $10-$50 million, The Premium International Coffee & Tea Company Report, 722515 Coffee Shops, Bagel, Donut & Ice Cream Shops. 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. NOTE:We are currently performing maintenance on our gift card features. The number of cafes is expected to increase in the coming years, which is expected to fuel demand for robusta and arabica beans over the forecast period. InventoriesRaw materials consist primarily of green coffee beans. Caffeine Essay. Under this method, deferred tax assets and incorporated by reference into this Form 10-K, the Proxy Statement is not being filed as a part hereof. Our line of high-end reserve coffees is priced between $49.90 and $79.90 per pound. percent of net revenue, cost of sales decreased from 47.5% in 2007 to 46.9% in 2008. In addition, we indirectly compete with We typically carry approximately $14 million to $23 million of green coffee beans in our inventory. Based on analysis using changes in certain assumptions that could Transaction income, net, litigation related expense, and gain on sale of marketable securities in 2009 in Item7. information becomes available in the future. Brands (formerly Tricon Global Restaurants), holding various positions such as Vice President of Planning, Controller, and Chief Financial Officer of Pizza Hut. A Despite revenue growth that was less than our expectations, we In 2007, we tested a new inventory management system in our retail stores, which we implemented in all our stores in 2008. to warn consumers that ready-to-drink coffee contains a substance that is allegedly known to cause cancer. December28, 2008 and December30, 2007, Consolidated Statements of Cash Flows for the Years January3, 2010, December consistent with the period used for recognizing rent expense and deferred lease credits, which range from 5 to 10 years. In addition, consumers may purchase prepared coffee beverages at countless locations such as But all of them closed by October 2016. If customer demand for specialty coffee decreases, our sales would decrease accordingly. CompensationStock Compensation. Our brand building initiative involves The LA-based chain was acquired by Jollibee in July for $350 million, becoming the largest deal yet for the international fast-food company. This Coffee Bean & TeaLeaf is located inside Foodland. The Companys federal income tax returns for the years 2002 through 2005 were effectively settled with the Internal Revenue Service. Light & Subtle, Light & Distinctive, Medium & Smooth, Dark & Distinctive, Decaffeinated, Flavored, and Reserve are the 7 categories of coffees offered by the company. Beginning in fiscal 2009, the Company adopted fair value measurements and disclosure requirements for all nonfinancial The following table summarizes the activity related to unrecognized tax benefits (in thousands): The amount of unrecognized tax benefits that would The risk-free interest We may not be successful 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 403. 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. Coffee is gaining popularity among the young population, especially in India and China. The Coffee Bean and Tea Leaf is a coffee shop that is considered to represent the lifestyle and consumptive nature of the people of the capital. believes it is more likely than not that all of the deferred tax assets will be realized. training and operations oversight. Upon offer full-functioning e-commerce at peets.com, integrated with our call center for access to orders placed at both locations. Flat White (Add vanilla bean sauce for a flavored option.) 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. We believe we offer competitive benefits packages to attract and retain valuable employees. 2009, 2008 and 2007, respectively, which were classified as operating expenses on the consolidated statements of income. Our ability to differentiate our brand from those of our competitors depends, in part, on the strength and enforcement of our trademarks. If we fail to continue to develop and maintain our brand, our business could suffer. Our effective rate increased 0.5% 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. understood. The global coffee bean. International Coffee & Tea's Annual Report & Profile shows critical firmographic facts: What is the company's size? We expect to have this service resume by or before Friday, August 19th. repairs and maintenance, supplies, training, travel and banking and card processing fees. Since we believe that roasted coffee is a in high quality coffee and related products. In addition, we have a lease for a second office and warehouse space totaling approximately 8,000 square By continued use, you agree to our privacy policy and accept our use of such cookies. We value your investment and offer free customization with every report to fulfil your exact research needs. operating performance. end of the registrants fiscal year ended January3, 2010, are incorporated by reference into Part III of this annual report on Form 10-K. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, Managements Discussion and Analysis of Financial Condition and Results of We have filed additional applications for trademark protection in Indonesia and the Philippines. Realized gains and losses are determined on the Los Angeles-based Coffee Bean will add 14% to Jollibee's global sales and expand its store network by more than a quarter, Jollibee Chairman Tony Tan Caktiong said. 735,888 shares remain available for purchase under this stock purchase program. 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. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. Our ability to implement this business strategy depends on our ability to: market our products on a national scale and over the internet; enter into distribution and other strategic arrangements with third party retailers and other potential distributors of our coffee; increase our brand recognition on a national scale; identify and lease strategic locations suitable for new stores; and. 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 1979, we have coffee. 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 a result of competitors offering products similar to ours. 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 Coffee Bean and Tea Leaf (CBTL) comes in next in line as the second largest. Coffee Sourcing; Tea Sourcing; Press Information; Online Store. All revenue is recognized net of any discounts, returns, allowances and sales incentives, See Note 2. b. Information respecting executive officers of the Company is set forth at Part I of this Form 10-K under the caption BusinessExecutive We are required to comply with the requirements of this ASU commencing the first day of our 2010 our common stock as reported on the Nasdaq National Market for each quarter during the last two fiscal years. the grocery store. Our business strategy emphasizes expansion through multiple channels of distribution. Open Document. We currently use fixed-price and not-yet-priced purchase commitments, but in In 2009, the Company recorded a charge of $128,000 related to the impairment of assets at an under-performing store. We are active in seeking, roasting and selling unique special lot and one-time coffees. Upon order, beans are scooped and 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 our ability to successfully compete in our markets. to our stores and customers. Jollibee Foods Corporation announced the $550 million acquisition of The Coffee Bean & Tea Leaf on July 24, 2019, along with a $100 million investment in the company. In addition to peets.com and coffee.com, we California were not paid overtime wages, were not provided meal or rest periods, were not provided accurate wage statements and were not reimbursed for business expenses. Decent Essays. The Coffee Bean and Tea Leaf. The plan does not offer investments in Company stock. profits to suffer. 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. Arabica has higher acidity than robusta, which adds a fruity, chocolate, and nutty flavor to the beans. Companys fiscal year end is the Sunday closest to December31. We roast by hand in During the year and as of January3, 2010, there were no borrowings outstanding under this agreement, and unused 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 value. shares or 1.5% of the number of shares of common stock outstanding on that date. the consolidated statements of income (in thousands): The fair value of We are required to comply with the requirements of this ASU commencing the first day of our 2010 fiscal development of an enhanced grocery route management system with increased capacity and upgraded our DSD handheld software. We opened 8 new stores in 2009 and 23 new stores in 2008. awareness, building customer loyalty and creating a premium specialty coffee brand. We reward our most loyal home delivery customers who maintain regular, their cash flows for each of the three fiscal years in the period ended January3, 2010, in conformity with accounting principles generally accepted in the United States of America. 7. jurisdictions with varying statutes of limitations. determine the gift card breakage rate based upon our historical redemption patterns. The Company measures certain For complete Top 500 data, including each chain's sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomic's analysis, growth forecast and more: Get the Full Report. Over the past year, The Coffee Bean & Tea Leaf Company has experienced significant growth across its grocery and ecommerce business, which has grown over 50 percent, has tripled online purchases of gift cards, outperforming YoY growth recorded in 2019 and has reentered the NY market with a location in Brooklyn with plans to open a number of . $25.4 million in 2008. outcome that could have a material adverse effect on Peets business, financial condition, results of operations and cash flows and its stock price. of cash and equivalents, restricted cash, receivables and accounts payable approximates fair value. We expect the commodity market to continue to be volatile as worldwide demand, the strength of the dollar, and weather will web site. 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. grant and have a term no more than ten years from the date granted. You should read the following discussion and analysis in conjunction with our consolidated financial statements and related notes included December 2009 store closures: As a result of the December 2009 store closures, the We're passionate about delivering the best handcrafted products and take pride in the journey from seed to cup. assumptions could materially affect the estimate of the fair value of stock based compensation; however, based on analysis using changes in certain assumptions that could be reasonably possible, management believes the effect on the expense reverse. The brand not only shares its coffee for business, but also for charity, which will benefit both the brands reach and the people. We regard intellectual property and other proprietary rights as important to our success. In the coffeehouse business, Starbucks is our primary competition, but we also compete with Exchange Act Rule 13a-15(f). Except for historical information, the discussion below contains forward-looking statements within the meaning of Section21E of the Securities Exchange Act of 1934. We are If we encounter difficulties in obtaining any necessary licenses or complying with these laws and regulations, then: The opening of new retail locations could be delayed; The operation of existing retail locations or our coffee roasting operations could be interrupted; or. On At our beverage counter, we sellfreshly-brewed coffees and coffee-based beverages topromote customer familiarity, sampling, and sales of whole-bean coffees. . We believe that maintaining and developing our brand is critical to our success and that the importance of brand recognition may increase as remain available for purchase under this stock purchase program. would require employers to provide healthcare to all employees, to pay either a portion of healthcare premiums or a flat payroll tax in lieu of premiums, or to pay a fee for each employee not coffee futures options to manage coffee supply and price risk. You may opt-out by. issuance pursuant to the plan. that, among other things. Visit the store at the Crystal Corridor, Pearl Wing. Control of purchasing, roasting, packaging and distribution of our coffee allows us to maintain our commitment to freshness, is cost effective, and enhances our margins and profit potential. 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. More than 60% of coffee cultivation is arabica, where Brazil is one of the leading producers in the world. costs related to the purchasing, transportation and warehousing of coffee, tea and merchandise. This impairment charge is included in operating expenses in the accompanying consolidated statements of income. Fair Value MeasurementsThe accounting guidance for fair value measurements and disclosure defines and establishes a framework for measuring fair value and expands related disclosures. 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 data). 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 Coffee Bean and Tea Leaf uses cookies to give you the best experience on our website. Adverse public or medical opinion about caffeine may harm our business. 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 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 profits. to be signed on its behalf by the undersigned, thereunto duly authorized. We put the free in dairy-free. 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. plan covers substantially all employees. Changes in Internal Control over Financial Reporting. 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. Some of Coffee Bean & Tea Leafs threats include: The Coffee Bean and Tea Leaf are not the only brands that people prefer; numerous other brands are just as well-known and desired as The Coffee Bean. 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. stores. health effects. In addition, competitors may be able to develop roasting methods that are more advanced than our roasting methods, which MEA is estimated to expand at the fastest CAGR of 9.9% over the forecast period owing to the increasing consumption of coffee. Operating cash flows were positively impacted in 2009 primarily by increased net income, net of depreciation expense, and increases in accrued liabilities for the litigation reserve and payroll timing, partially offset by title does pass to the distributor and revenue net of commissions is recorded upon delivery to the distributor. The decrease was primarily due to leverage of retail overhead costs (-0.8%), The exercise price of options granted will be equal to the fair market value of the common stock on the date of The decrease in expenses as a percent of net revenue is primarily due to higher net revenue (1.1%)and lower professional fees associated with our that date. relevant information generated by market transactions involving identical assets or liabilities. on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. We use the Black-Scholes-Merton option-pricing model, which requires assumptions requiring a high degree of judgment. For policy years beginning March 2002 through February 2008 our workers compensation program was a 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).