ROCKLIN, Calif.–(BUSINESS WIRE)–Peabodys Coffee Inc. (OTCBB:PBDY – news) announced today that the merger with Beantrees Inc. will not be completed. Peabodys is reserving all legal rights with respect to the matter.
Cliff Young, President and CEO of Peabodys Coffee, commented, “Although this merger will not be completed, our core business remains strong and we are committed to the organic coffee market.” The Company reports that its core business continues to show strong growth. Sales for the month of October 2001 showed a 31 percent increase to $321,000, as compared to October 2000. For the month of November 2001, a month subject to seasonal Thanksgiving closures at university venues, sales showed a 54 percent increase to $320,000, as compared to November 2000. “The October and November sales figures are 100% Peabodys generated,” commented Peabodys’ Chairman and CFO Todd Tkachuk.
The Company also reports it has independently researched the organic coffee segment of the specialty coffee market. In November 2001, the Company began to implement a system-wide conversion to 100% organic coffee at all Peabodys operating units. The Company is committed to providing only organic coffee in all its future activities.
The Company believes the specialty coffee industry will continue to experience considerable consolidation activity. In addition to the planned growth in its core business, the Company believes there will be many further opportunities for growth via potential M&A activity. The Company intends to continue with its growth plans, not only in full service operations but also through wholesale trade with national retailers and restaurant and foodservice distributors.