Peet's Coffee & Tea, Inc.: SWOT Analysis & Company Profile by BusinessReview

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Business Review’s Peet's Coffee & Tea, Inc. contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

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									Peet's Coffee & Tea, Inc.

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Peet's Coffee & Tea, Inc: SWOT Analysis &
Company Profile


Reference code: BRCP193CP10-Q4

Published: Sep 2010




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Peet's Coffee & Tea, Inc. - SWOT Profile                                            Page 1
Peet's Coffee & Tea, Inc.

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Peet's Coffee & Tea, Inc. - Company Overview

Peet's Coffee & Tea, Inc. (Peet's Coffee & Tea) is the US based specialty coffee roaster and marketer of fresh roasted
whole bean coffee and tea. The company sells its products through multiple channels of distribution, which include the
grocery stores, home delivery, office, restaurant and foodservice accounts. In addition, the company operates 192 retail
stores in six states such as California, Washington, Oregon, Massachusetts, Illinois and Colorado. Its product portfolio
includes whole bean coffee, beverages and pastries, tea and other related items. It sells its products under the brand
names of Espresso Forte, Peet’s, Peet’s Coffee & Tea, Gaia Organic Blend, Garuda Blend and other. The company is
headquartered in Emeryville, California, the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 311.27 million during the fiscal year ended January 2009, an
increase of 9.29% over 2008. The operating profit of the company was USD 23.39 million during the fiscal year 2009, an
increase of 37.60% over 2008. The net profit of the company was USD 19.25 million during the fiscal year 2009, an
increase of 72.43% over 2008.




Peet's Coffee & Tea, Inc. - Key Facts

Peet's Coffee & Tea, Inc., Key Facts

                                  1400 Park Avenue, Emeryville,
                                  California (CA), 94608, United    Ticker Symbol, Stock
Corporate Address:                                                                             PEET (NASDAQ)
                                                                    Exchange
                                  States


Telephone                         + 1 510 5942100                   No. of Employees           771



Fax                               + 1 510 5942180                   Financial Year End         January



URL                               www.peets.com                     Revenue (in USD Million)   311.27


                                  Consumer Packaged Goods ,
Industry                          Retailing


Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Peet's Coffee & Tea, Inc. - SWOT Profile                                                                        Page 2
Peet's Coffee & Tea, Inc.

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Peet's Coffee & Tea, Inc. - Business Description

Peet's Coffee & Tea, Inc. is the premier specialty coffee and tea company in the US. It is engaged in the business of
specialty coffee roasting and marketing of fresh roasted whole bean coffee and tea. The company principally sells whole
bean coffee, beverages and pastries, tea and related items. The company uses multiple channels of distribution including
grocery stores, home delivery, office, restaurant and foodservice accounts and company-owned and operated stores to
sell its products. As of January, 2010, it operated 192 retail stores in six states which include 166 stores in California,
seven stores in Washington, eight stores in Oregon, six stores in Massachusetts, two stores in Illinois and three stores in
Colorado.

The company sells its products under several brands such as Peet’s, Peet’s Coffee & Tea, peets.com, Blend 101, eCup,
Espresso Forte, Fresh Fridays, Gaia Organic Blend, Garuda Blend, JR Reserve Blend, Major Dickason’s Blend, Peetniks,
Pride of the Port, Pumphrey’s Blend, Summer House, and Snow Leopard. In addition, the company also owns registered
trademarks for its name and logo in various regions, including Argentina, Chile, China, Australia, Brazil, Canada, the
European Union, Hong Kong, Japan, Paraguay, Taiwan, Singapore, South Korea and Thailand.

The company operates its business in two segments, Retail Stores and Specialty Sales.
Under Retail Stores segment, the company sells whole bean coffee, beverages and pastries, tea and other related items
through its network of 192 stores. It operates its stores in six states of the US. During the fiscal year ended December
2009, the Retail Store segment of the company generated revenue of USD 201.39 million, an increase of 7.15% over the
previous fiscal year.

Specialty Sales segment caters to the sales relating to home delivery customers, grocery stores, restaurant and
foodservice companies, and office accounts. The company sells its products through a network of grocery stores such as
Safeway, Albertson’s, Ralph’s, Kroger, Publix and Whole Foods Market. It also developed a Direst Store Delivery (DSD)
sales and distribution system to cater to the grocery customers. The company currently has 55 company-operated DSD
route sales representatives and approximately 180 independent distributors.

The company through its home delivery channel offers points of contact to its customers for coffee ordering and coffee
knowledge through a Website and customer service representatives. It also works closely with foodservice and office
distributors to expand its account base in selected markets and channels. The company works on two models to serve its
foodservice accounts and distribution of its products, namely, “we proudly brew” (WPB) accounts and licensing accounts.
WPB accounts represent the foodservice accounts in which the company supplies the equipment and product to brew and
resell its products. In licensing accounts, the company licenses a full Peet’s beverage store within another location such
as an airport, grocery store or college campus. During the fiscal year ended December 2009, the Specialty Store segment
of the company generated revenue of USD 110.1 million, an increase of 13.42% over the previous fiscal year.

Recently the company announced that it has extended the expiration date of its exchange offer to acquire Diedrich
Coffee, Inc.




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Peet's Coffee & Tea, Inc. - SWOT Profile                                                                          Page 3
Peet's Coffee & Tea, Inc.

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Peet's Coffee & Tea, Inc. - Major Products and Services

Peet's Coffee & Tea, Inc. is engaged in the business of specialty coffee roaster and marketing of fresh roasted whole
bean coffee. Its key products and brands include the following:

Peet's Coffee & Tea, Inc., Major Products and Services
Products:

Whole Bean Coffee

Beverages and Pastries

Tea

Other Related Items

Brands:

Arabian Mocha-Java

Blend 101

Espresso Forte

Fair Trade Blend

Gaia Organic Blend

Garuda Blend

House Blend

Major Dickason's Blend

French Roast

House Blend

Sumatra
Source: Annual Report, Company Website, Primary and Secondary Research




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Peet's Coffee & Tea, Inc. - SWOT Profile                                                                          Page 4
Peet's Coffee & Tea, Inc.

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Peet's Coffee & Tea, Inc. - History

Peet's Coffee & Tea, Inc., History

    Year                Event type                                                    Description


                                                The company launched six varieties of Bottled Iced Teas, which are crafted from green,
                                                oolong, white and black teas. It also entered into a licensing agreement with Godiva
   2009      New Products/Services
                                                Chocolatier, Inc to sell its flavored coffees in supermarkets nationwide, mass
                                                merchandisers and related channels.


                                                The company entered in to licensing and supply agreement with the Metropolitan
   2008      Contracts/Agreements
                                                Coffee & Concession for Kiosk operation in San Francisco.


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