SPoT Coffee Outlines 5-Year Corporate Growth Plan
TORONTO, ONTARIO--(Marketwire - Oct. 25, 2012) -
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SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce that its Board of Directors has approved a new five-year expansion plan to increase the total number of system-wide cafes, expand further the wholesale and retail distribution of SPoT's award-winning gourmet coffee and proprietary coffee blends, and increase the growth of other areas of expansion that include enhancing the Company's corporate catering program and the launch of new food and beverage items.
Over the next five years, details of the expansion plan released by the Company include:
-- 90-110 new corporate cafes leveraging SPoT's existing geographic
footprint in Ontario and New York State and continuing to expand into
the Northeastern United States. Future states of planned expansion
include Pennsylvania, Connecticut, Massachusetts, New Hampshire and
Vermont. SPoT intends to open ten corporate cafes over the course of
2013, continuing to increase the rate of corporate cafe expansion to two
cafes per month by the start of 2016.
-- 60-75 new North American licensed cafes, including the current licensing
program commencing in Florida. Future North American licensed cafes will
be outside the geographic footprint of corporate cafes in Ontario and
the Northeastern United States. The Company expects to open a minimum of
six new licensed cafes in 2014 with increasing amounts of regional
expansion to come each subsequent year.
-- 20-30 new licensed cafes through the Company's International Master
License for the Middle East, North Africa, United Kingdom and Ireland.
The first location is expected to open in 2014 with an increased number
of units opening in each subsequent year. The Company has already
identified key strategic regional and financial partners to assist with
this execution and SPoT is currently establishing its International
Master Licensor in the Republic of Ireland.
During 2013 SPoT will further roll out its corporate catering program to all new and existing corporate and licensed cafe locations. The catering program is expected to improve system-wide revenue throughout the five-year growth plan by increasing average cafe same-store-sales and cash flow generation on a year over year basis. Furthermore, the Company continues to see upside, through stronger demand caused by increased brand recognition, in the wholesale and retail distribution of the Company's award-winning gourmet roasted coffee and proprietary coffee blends. The Company has invested into increasing its existing roastery operation located in Buffalo, New York and will continue to invest in new roastery operations in line with the Company's growth. Outside of the Company's cafes, SPoT's coffee is currently sold retail through a regional grocery store chain in Western New York and wholesale through the Company's commercial account program to universities, businesses, convenience stores and institutions. SPoT is investing into personnel and infrastructure to support further expansion of these growth areas.
"I am extremely pleased that the Board of Directors has approved our five-year plan to grow SPoT's system-wide cafes to between 170-215 additional cafes by 2017. 2013 is optimal for commencing this strategy as SPoT's portfolio of cafes continues to perform extremely well, shown by last quarter's system-wide sales revenue being up 29% over 2011 and a same-store- sales increase of 13.2% for seasoned cafes," said Anton Ayoub, President of SPoT Coffee. "We have spent the last two years ensuring that the corporate infrastructure and cafe operating systems are in place to provide a strong and stable platform to support this future growth. I am confident that our strong and experienced operating team at SPoT can successfully execute this growth plan which includes new corporate cafes, licensed cafes, an enhanced catering program and the increase in the wholesale and retail distribution of our award-winning gourmet roasted coffee and proprietary coffee blends."
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafes that provide its customers with the highest quality service, signature made-to-order meals and the world's finest in-house roasted gourmet coffee. Each SPoT cafe is distinctively designed to meet the uniqueness of the local neighborhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Factors that would impact the Company's ability to execute its growth plan include, amongst others, availability of expansionary capital, potential inability to locate and secure new cafe sites in locations that we believe to be attractive, obstacles to hiring and training qualified operating personnel in the local market, delay or cancellation of new site development by developers and landlords, which may become increasingly common during periods of economic uncertainty or tight credit, difficulty managing construction and development costs of new cafes at affordable levels, particularly in competitive markets, difficulty negotiating leases with acceptable terms, any shortages of construction materials and labor or lack of availability of, or inability to obtain, adequate supplies of ingredients that meet our quality standards. Except as required by applicable securities requirements, the Company undertakes no obligation to update forward- looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
SPoT Coffee (Canada) Ltd.
Corporate Development & Shareholder Communications
SPoT Coffee (Canada) Ltd.