Topper
Registered: Jul 2009
Posts: 218 |
10-29-09 06:55 PM
Peet's Coffee & Tea, Inc. (Peet's) is a specialty coffee roaster and marketer of fresh roasted whole bean coffee. The Company sells its coffee through multiple channels of distribution, including grocery stores, home delivery, office, restaurant and food service accounts and Company-owned and operated stores in six states. The Company operates its business through two segments: retail and specialty sales. As of December 28, 2008, the Company operated 188 retail stores in six states, through which the Company sells whole bean coffee, beverages and pastries, tea and other related items. Its stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of its coffee through coffee beverages. Each store has a staff person at the bean counter to take orders and assist customers with questions on coffee origins and on home brewing. Upon order, beans are scooped and ground to the customer’s specific requirements. At the Company’s beverage counter, it rotates and sells freshly-brewed coffees and coffee-based beverages to promote customer familiarity, sampling and sales of whole-bean coffees.
The Company sells its products through a network of grocery stores, including Safeway, Albertson’s, Ralph’s and Whole Foods Market. To support this expansion, it has developed a direct store delivery (DSD) sales and distribution system. Peet’s DSD route sales representatives deliver directly to their stores anywhere between 1 to 3 times per week, properly shelve the product, rotate to ensure freshness, sell and erect free-standing displays and forge store-level selling relationships.
In the home delivery channel, the Company provides points of contact to its customers for coffee ordering and coffee knowledge through a Website and customer service representatives. Its Website features an Express Buy function for registered customers for special coffee and tea programs and a coffee and tea selector to assist the customer in choosing a product based upon certain characteristics. Peets.com also features a tool that allows customers to manage the timing and delivery of their recurring orders. The Company rewards its most loyal home delivery customers who maintain regular, ongoing deliveries of coffee or tea through its Peetnik Loyalty Program.
The Company has two models for servicing its foodservice accounts and distributing the products: We Proudly Brew (WPB), accounts and licensing accounts. WPB accounts are foodservice accounts where Peet’s supplies the equipment and product to brew and resell its products. Licensing accounts involve the creation of a full Peet’s beverage store within another location such as an airport, grocery store or college campus.
The Company purchases only Arabica coffee beans. It roasts by hand in small batches. It sells 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. The Company also offers a line of reserve coffees, including JR Reserve Blend and Kona, and it has also featured seasonal reserve coffees, such as Jamaica Blue Mountain and Panama Esmeralda. On average, Peet’s offers 4 to 6 such coffees every year, including its Anniversary Blend and Holiday Blend.
Peet’s offers a line of hand selected whole leaf and bagged tea. The Company purchases tea directly from importers and brokers, and stores and packs the tea at its facility in Emeryville, California. Peet’s offers a limited line of specialty food items, such as jellies, jams and candies. Its merchandise program consists of items, such as brewing equipment for coffee and tea, paper filters and brewing accessories, and branded and non-branded cups, saucers, travel mugs and serveware.
The Company competes with Starbucks Corporation, Coffee Bean & Tea Leaf, Tully’s and Caribou Coffee, Green Mountain Coffee, Illy Caffe, Millstone (Smucker’s), Seattle’s Best (Starbucks), Tully’s and Dunkin Donuts, Maxwell House and Folger’s.
http://www.reuters.com/finance/stoc...6&symbol=PEET.O
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