Tag Archives: Caribou Coffee

Business, Finance, Occupation & Industry

Coffee Gets a Hot Dose of New Competition

Leave a comment

By Andrew Marder, The Motley Fool

Filed under:

The world is getting smaller, or at least more connected. In an odd reversal of business, it seems more and more brands are being consolidated under one big owner — almost the way it was in the early part of the 20th century. Yesterday, another massive company slipped under the waves, when D.E. Master Blenders agreed to sell itself off to Joh. A. Benckiser, or JAB.

Never heard of JAB or Master Blenders, you say? That’s not really surprising, as both are European companies. But even if you don’t know them, you know their work, and with this purchase, you might know their wrath.

The Continental Congress
JAB is a sort of multiheaded beast of an investment arm, which buys and holds companies for the Reimann family. The Reimanns, in turn, are wealthy — about $20 billion net worth  — heirs to a chemical company fortune. JAB is a private investment arm, which works on its own and through three other vehicles:

  • Coty is a majority-owned beauty product company, which produces Calvin Klein, Adidas, and other designer perfumes.
  • Reckitt Benckiser is a home-products company, which manages dozens of brands, including Air Wick, Clearasil, and Old English in the United States.
  • The LABELUX Group owns Jimmy Choo and Bally and focuses on high-end fashion

The most recent buying spree has come from the root company, JAB. In the past year, it has purchased Peet’s Coffee and Tea for $975 million, Caribou Coffee for $340 million, and now Master Blenders for $9.8 billion. In less than one year, the company has amassed a multibillion-dollar global coffee position.

This is where we look out
That’s a good reason to be worried, if you’re an investor in Starbucks or Green Mountain Coffee Roasters or really any major coffee company. Master Blenders‘ main line is a brand called Douwe Egberts, which used to be served in Burger King until the company signed with Seattle’s Best, a Starbucks brand.

So far, JAB has said that it’s not planning to combine the operations of its three new brands. Instead it plans to keep the American coffee shop companies doing their thing, and the European production arm doing its thing. But Master Blenders does have the ability to make pods to go up against Green Mountain and others, and if it wanted to, the company could use that capability to make a move in the American market.

It could also move against Starbucks, by using its European production capabilities to bring new lines to the U.S., or by using its U.S. cafe brands to bring new competition to Starbucks in Europe. No matter what JAB does, it’s almost certainly going to present new challenges for U.S. coffee brands in the future. Investors should watch for any new business lines from JAB and keep an eye out for more acquisitions in the near future.

With Green Mountain as cheap as it’s ever been, many investors are wondering whether

From: http://www.dailyfinance.com/2013/04/13/coffee-gets-a-hot-dose-of-new-competition/

News, Politics, Government

Caribou Coffee Customers Attack on Facebook — But Here's What They're Missing

Leave a comment

By Carol Tice, Contributor

It isn’t easy managing a corporate Facebook page when your company is closing stores. That’s the awkward position Caribou Coffee finds itself in this week, after announcing 80 closures Monday.

From: http://www.forbes.com/sites/caroltice/2013/04/11/caribou-coffee-customers-attack-on-facebook-but-heres-what-theyre-missing/

Business, Finance, Occupation & Industry

1 Company's Caribou Coffee Closure Celebration

Leave a comment

By Andrew Marder, The Motley Fool

Filed under:

It’s been a year of good news for Starbucks , and this week’s announcement that Caribou Coffee is closing or rebranding a number of its locations is just one more good tiding. Caribou made the announcement that stores would be closing in certain regions starting on April 14. Some of those businesses will be permanently shuttered while others will switch over to Peet’s Coffee locations later this year. The company behind both Caribou and Peet’s is German holding company Joh. A. Benckiser, an investment vehicle for the Reimann family.

White ground to run
While the store closures are a nice touch, the real win for Starbucks is the move to Peet’s locations, which goes some way to validating the moves Starbucks has made recently. Peet’s splits its focus between coffee and tea, and is a more upscale experience than Caribou. That aligns almost precisely with the Starbucks model, which recently added Teavana to its portfolio.

That acquisition is going to put more tea on Starbucks’ shelves, and give the company a stronger foot to extend into tea-heavy markets, like Europe. The addition will also help Starbucks differentiate itself from competitors like Caribou and Dunkin’ Brands‘ Dunkin’ Donuts chain. Dunkin’ has been on a tear recently, with comparable sales up 3% in the U.S. and operating margin surpassing 47% last quarter.

The tea addition should help Starbucks continue its strong growth. But the move from Caribou and Peet’s isn’t the only thing going Starbucks’ way recently.

Coffee fit for a king
In February, Starbucks’ Seattle’s Best Coffee brand became the new coffee for Burger King . The collaboration should help Starbucks compete with McDonald’s McCafe program, which has helped the burger-chucker increase revenue over the past few years. Last quarter, management said that work is continuing behind the scenes to keep McCafe as a driver of long-term growth.

Now, Starbucks has a way to capitalize on that same customer segment through its Burger King partnership. While the move is clearly aimed at the McDonald’s crowd, there’s sure to be some overlap with Dunkin’s customers, as well. That’s a double win for Starbucks, which is successfully tapping both the high and low end of the market in a bid to maintain its dominance.

For now, things look good for the company, and as it expands its tea line over the year, look for news of new international expansion, which the company has said will be more in focus this year.

McDonald’s turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald’s future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Coffee War Is Heating Up

Leave a comment

By Chris Hill, The Motley Fool

Filed under:

The following video is from Tuesday’s MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Bill Barker, discuss the top business and investing stories of the day.

Several months ago, the Benckiser Group acquired Caribou Coffee for $340 million. On Monday, Caribou Coffee said that it’s closing 15% of locations in the United States and converting another 20% into Peet’s Coffee & Tea stores, which is also owned by Benckiser Group. In this installment of MarketFoolery, our analysts discuss these companies, as well as the continuing raging coffee wars among Starbucks , Dunkin’ Brands‘ Dunkin’ Donuts, and Panera Bread .

Investors can be forgiven for thinking that a company that has returned almost 2,500% since going public probably has its best days behind it. But in the case of Panera Bread, there’s reason to believe that the best is still yet to come. The stock has been on an absolute tear over the past five years, and you’re invited to find out why — and what else there is to look forward to — in The Motley Fool’s brand-new premium report on Panera. Included are key areas that investors must watch, as well as opportunities and threats facing the company both today and in the long term. Don’t miss out on this invaluable investor’s resource — simply click here now to claim your copy today.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Chris Hill“, contentId: “cms.31144”, contentTickers: “NASDAQ:SBUX, NASDAQ:PNRA, NASDAQ:DNKN, NASDAQ:PEET”, contentTitle: “The Coffee War Is Heating Up”, …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Is Starbucks Slipping?

Leave a comment

By Molly McCluskey, The Motley Fool

Filed under:

There’s no question that Starbucks  has a more outspoken, community-minded mission than its competitors. When CEO Howard Schultz politely told a shareholder to sell his shares after the shareholder suggested Starbucks’ gay-marriage stance was hurting the company, it was just one more headline in a year of headline grabs.

But was the shareholder right? Is Starbucks a victim of its own passions? While beans may make the cup, the message makes the brand. And as Starbucks’ message gets a little muddled in the face of growing competition, the competitors are using the mermaid to build their own brand.

Market slip?
A recent poll of hospitality’s most social brands shows that McDonald’s has slightly edged out Starbucks in its online love. It’s a subtle shift, but one that reflects a larger trend. McDonald’s has long been the haven of those on the go, while Starbucks has courted the entrepreneur/freelance-work-from-a-coffee-shop crowd (including yours truly). But Starbucks’ new eco-friendly, small-space store with no room for power outlets, tables or lounging has some wondering if Starbucks doesn’t want the all-day-sitting, free-refill-drinking coffee-loving laptop-toters, after all. On the other hand, McDonald’s recent push to include customers in its social media campaigns came with prizes worthy of the Macbook-toting hipster crowd.

Dunkin’ Donuts  has slowly gained market share over the past year, while its “Friends Don’t Let Friends Drink Starbucks” campaign is now as recognizable to many as the mermaid herself.  

A coffee klatch
Coffee lovers should keep an eye on the German investment firm Joh. A. Benckiser, which has been methodically buying up coffee companies for the past year. The Minneapolis coffee chain Caribou Coffee was recently purchased for $340 million. The group also bought Peet’s Coffee & Tea last year for $974 million. Rumors abound that the company is now eyeing Dutch Master Blenders, the company spun off by Sara Lee last year. Dutch Master Blenders has struggled as an independent company. A large, consolidated brand of these three companies could be enough to challenge Starbucks overseas.

The proof is in the cup
In the face of the confrontational shareholder, Schultz acknowledged a poor quarter, while also pointing out the company’s 38% return over the past year. He challenged the shareholder to find such returns elsewhere, with reason for his confidence. Canadian competitor Tim Hortons, which has been slowly making progress in the U.S. market, is nearly flat from this time last year after a range of peaks and valleys. Dunkin’ Donuts and McDonald’s may brew a good cup, but aren’t coffeehouses. As long as Starbucks keeps the atmosphere it built itself on, and opens small-space stores sparingly, the gap will stay wide.

After all, while Dunkin’ Donuts might post cheeky billboards claiming that $4 for a cup of coffee is ridiculous, $3.70 for a tall soy latte, power outlet, comfortable chair, and Wi-Fi for a day in an urban area is cheaper than office space and the …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Dutch coffee company DEMB in buyout talks

Leave a comment

D.E. Master Blenders 1753, the Dutch coffee company that was spun off by Sara Lee Corp. last June, says it is in talks to be acquired by a group led by private German investment company Joh. A. Benckiser GmbH for around €7.6 billion ($9.7 billion).

Benckiser owns stakes in Peet’s Coffee & Tea Inc. and Caribou Coffee, among others.

Master Blenders said in a statement Thursday the potential buyers are looking at a price of €12.75 per share, a 33 percent premium to Wednesday’s closing price. But they haven’t made a formal offer.

The company’s shares soared 26 percent to €12.14 in Amsterdam trading Thursday.

Master Blenders had a poor start as an independent company, with profits and estimates falling, and accounting irregularities uncovered at its Brazilian arm.

…read more
Source: FULL ARTICLE at Fox World News