Diedrich Coffee

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International Guild of Hospitality & Restaurant Managers

Diedrich Coffee, Inc. is a specialty coffee roaster, wholesaler and retailer. The Company sells brewed, espresso-based and various blended beverages primarily made from its own roasted coffee beans, as well as light food items, whole bean coffee and accessories, through its operated and franchised retail locations. The Company also sells whole bean and ground coffees on a wholesale basis through a network of distributors in the office coffee service (OCS) market and to other wholesale customers, including restaurant chains and other retailers. Its brands include Diedrich Coffee, Gloria Jean's Coffees and Coffee People. The Company operates a limited number of kiosks under the Coffee Plantation brand name. As of July 3, 2002, the Company owned and operated 70 retail locations and franchised 307 other retail locations under these brands for a total of 377 retail coffee outlets.

The Company's retail units are located in 37 states and 10 foreign countries. As of July 3, 2002, Diedrich Coffee also had over 426 wholesale accounts with OCS distributors, chain and independent restaurants and others. In addition, the Company operates a large coffee roasting facility in central California that supplies freshly roasted coffee to its retail locations and wholesale accounts.

Diedrich Coffee's Gloria Jean's mall-based coffee stores offer an extensive variety of flavored whole bean coffees, as well as an assortment of coffee-related merchandise, accessories, porcelain novelties and gift items, in addition to coffee-based beverages. The Company's largest brand is Gloria Jean's, and over 94% of Gloria Jean's retail units are franchised. Gloria Jean's retail units are located throughout the United States and in 10 foreign countries. Gloria Jean's is engaged in the mall coffee store segment with 313 coffee stores in 37 states across the United States and in 10 foreign countries. In addition to coffee beverages and roasted whole bean coffees, Gloria Jean's carries a wide selection of gift items and coffee accessories, as well as a small selection of bakery items to complement beverage sales. The stores sell from 32 to 48 varieties of flavored and non-flavored coffees. Approximately 50% of sales mix is comprised of beverage sales.

The Company's Diedrich Coffee brand has a higher concentration of Company operated units, with 68% of retail locations it operated. Company units are located primarily in Orange County, California, although there are a number of Diedrich locations in Denver, Houston, and elsewhere in the United States. In addition to coffee beverages and roasted whole bean coffees, all of its Diedrich Coffee coffeehouses offer a limited selection of light food items, such as bagels, croissants and pastries, and dessert items, such as cookies and cakes, to complement beverage sales. Its coffeehouses sell more than 20 different selections of regular and decaffeinated roasted whole bean coffees and they carry select coffee-related merchandise items.

Diedrich Coffee also operates retail coffee outlets under a third brand, Coffee People, which are 100% Company operated. Coffee People outlets are all located in Portland, Oregon. Finally, the Company operates a limited number of kiosks in Arizona under the Coffee Plantation brand name.

The Company competes with Starbucks, Coffee Beanery Ltd., Caribou Coffee, Barnie's, Tully's, New World Coffee & Bagels, Peet's Coffee, Kraft General Foods, Proctor & Gamble, Nestle, Seattle's Best Coffee, Bucks County, Brothers Gourmet Coffees and Green Mountain Coffee Roasters.

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Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.