Still retaining an updated version of the North Woods store decor, the business boasts owned and franchised locations in 23 states, Washington, D. Its beans sell in grocery stores in all 50 states, and the retail chain has bragging rights as the No. Renee Jones Schneider, Star Tribune The new Nitro cold brew coffee creates a foam at the top of the coffee like a beer.
He will be flying to Costa Rica and Colombia in a few weeks to meet with coffee farmers and to test and buy beans, Butcher said as he walked through the roastery and warehouse, where sky-high piles of coffee bags arrive by plane and truckload every week.
Inside the roastery, 50 workers operate an arsenal of giant silos, vacuums and other equipment that sorts, roasts, grinds and packages every bag of Caribou coffee, said Butcher, who has been an avid fan of the brand for 22 years. Another work at the headquarters in other roles. Butcher is one of the latest executives to lead the chain following several ownership changes — from the Pucketts, to the Crescent Capital investment arm of the First Islamic Bank of Bahrain and the renamed Arcapita.
If Butcher gets his way, Caribou will grow even more. The strategy also includes marketing coups, such as being named the official coffee of the Super Bowl Host Committee. For weeks, 30 Minnesota employees experimented with 20 different beans from 12 countries before landing on just the right blend for the big game, said Butcher while holding a newly packaged bag of Bold North, a dark roast coffee with notes of caramel and oak.
Bold North will be featured prominently inside the U. Bank Stadium on game day Feb. Still, the strategy could work, he said. Company growth plans also include bulking up on carbs. It now has 47 owned and franchised stores featuring Caribou Coffee and Einstein bagel stores that sit right next door to each other. But we have no plans yet. Brands Inc. This starts with a coffee-sourcing strategy that recognizes and celebrates the inherent characteristics of global coffee producers instead of promoting an overreaching roast profile that masks the different beans with a burnt aftertaste.
Tattersfield also adds that great attention has been paid to incorporating a real chocolate program in line with its coffee program, sourcing top-quality dark, white and milk chocolates with flavor and texture profiles to complement what customers are cupping. Caribou Coffee is dedicated to having a positive impact on more than just taste buds.
The company is a fully committed member of the Rainforest Alliance, an organization dedicated to helping farmers and businesses stay profitable, while promoting the use of sustainable growing practices and education to help protect threatened eco-systems. According to Tattersfield, Caribou Coffee is the first major coffeehouse chain in the United States to source percent of its coffee and espresso beans from Rainforest Alliance Certified farms. In addition, Caribou Coffee allocates funds from every pound of coffee bought to support positive, progressive initiatives in coffee-producing communities, such as building clinics, financing schools, investing in reforestation efforts and supporting water-cleaning programs.
Is that limiting? We are a Minnesota company, but it gives us access and visibility to trends around the world. This new Edina store, for example—the design partner was Espresso House, one of our Swedish brands. We felt like the Scandinavian influence was a good fit. Hot- or cold-brewed coffee favorites include single-origin Brazil, Obsidian, and Mahogany , brewed at home or picked up at Caribou on the way to the office. TCB: Is there pressure from ownership to meet certain metrics or change your focus?
We just want to be the best. JB: We recently rewrote our mission statement. Previously, the mission was: Be the community place I love.
We wanted to make more impact. The new mission is: Create day-making experiences that spark a chain of good. JB: We relaunched our Perks program. People were confused as to why and how they were being rewarded.
Membership is up 25 percent in the last six months. But it could get better. What we know: The guests now enrolling in Perks are 11 years younger than the guests already enrolled.
TCB: So how young is that, exactly? Who is your core customer? We look at trends in the marketplace. We knew that cold coffee was really the growing segment. Cold is easier to consume throughout the day. I looked at what somethings were drinking, and they had cans of coffee and bottles of coffee and they were asking for a nitro coffee. So we started to lay out a multiyear innovation pipeline based on cold coffee. JB: A lot of nitro equipment requires tanks, which you have to switch out.
Unlike other locally based competitors Dunn Bros. The mystery shopper was one technique used to ensure good customer service: loyal customers trained to critique their Caribou experience regularly visited the shops. Kim, who was in charge of personnel, received the historically low score when she filled in for an ailing employee, according to the Campbell article. While the Pucketts strived for product and customer service consistency from store to store, they also wanted each location to reflect the personality of the neighborhood.
As Kim managed the personnel aspects of the stores, John tended to coffee quality, real estate acquisition, and finances. Some of the new capital was earmarked for expansion into a new market: Atlanta. Tennessee-native John Puckett planned to capitalize on his knowledge of the Southeast, just as they had used Kim's knowledge of the Midwest as they built their Twin Cities market. Bringing ten stores into operation in a relatively short period of time gave the couple ample learning opportunities.
For example, they discovered downtown Minneapolis shops pulled in morning customers but slacked off over the rest of the day, thus proving to be poorer performers than the neighborhood shops. To facilitate growth the company made some internal adjustments, including the establishment of a central roasting facility and the hiring of a chief financial officer.
As expected, Starbucks came on the scene and opened shops in downtown Minneapolis in March , providing competition for Caribou but also upping interest in specialty coffee.
Kafte closed its Minneapolis locations a few months later, claiming competition among the larger players had inflated real estate prices for choice sites. Paul CityBusiness article, that Caribou Coffee had cornered the market on investment dollars as well. The Pucketts continued to seek out opportunities which would strengthen their position in the market.
In addition to serving beverages to Byerly's shoppers, Caribou shelved branded coffee beans and merchandise. Caribou had other synergistic relationships with retailers, including bagel and bookstores.
The investment community, eager to send up the next Starbucks, continued to pump money into Caribou Coffee. The enterprise also drew interest, Schafer surmised in an earlier article, because of the caliber of investors already on board, such as John Puckett's uncle Dr. Thomas F.
Jundt, who was well-known on Wall Street.
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