SPoT Coffee Outlines 5-Year Corporate Growth Plan

25 Oct 2012 18:16 ET

Marketwire Canada - NFD

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

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."

Full article at Reuters.

PS.  Financeers should be happy.  Store owners and workers should be happy.  Investors should be happy too within 5 years as the 5 year plan pans out.  What says Hodgkins of Curvature?

Cheers,

Dave.