The latest phase in a year’s worth of rebuilding and rebranding at Caribou Coffee has hit the streets.
The new look ranges from the subtle – brown cup covers – to the sublime: a new-looking caribou logo built out of a coffee bean.
The company’s theme remains central – “Life is short. Stay awake for it.”
These and other steps aim to reconnect with customers. They are part of a yearlong revitalization of a brand that was languishing a year ago, when the company reported a $16.8 million loss.
Now, Caribou has added messages to coffee cups and napkins, store decor and – coming soon – billboards and other outdoor venues that designers hope will resonate with consumers.
Cups bear messages that say “Spend time with your kids, tomorrow they’re a day older” and “Dare to adventure” and “Don’t wait for New Year’s to make a resolution.”
“We wanted a visual signal that Caribou is alive and well,” said Alfredo Martel, senior vice president of marketing for the Brooklyn Park, Minn., company. “We’re saying life is short, seize the day.”
Martel called the latest Caribou marketing attempt “a two-way conversation with the customer.”
Caribou, which is a distant second to Starbucks in the coffeehouse industry, currently has 515 stores, including 112 that are franchised and licensed. Its lone Indiana location is on the IUPUI campus.
The company also has a commercial wing that sells branded products to grocery stores, airlines, hotels and other merchandisers.
Last month, Caribou added “handcrafted” oatmeal to its menu following the addition of new chocolate beverages late last year. The company now is testing in-store baked items, and five flavors of Tea Latte Fusion were scheduled to be introduced last week.
At the end of 2008, Caribou’s stock was trading at $1.36 a share. Today, it’s $7.10 a share on sales of $262.5 million in 2009, up 3.4 percent from 2008, and earnings of $5.1 million, after the loss in 2008.
Under the direction of CEO Mike Tattersfield – the third leader in three years – the company shut some stores, concentrated on its core markets, added new products and focused on customer service. In a conference call with financial analysts, Tattersfield called 2009 “a significant success in our turnaround efforts.”
“We’re very encouraged by the progress the management team has made in the last year,” said stock analyst David Tarantino of Robert W. Baird & Co. “They seem focused on the right areas, but progress doesn’t happen overnight. It’s still a tough consumer environment out there, and their rate of investment (back in the company) is dependent on the sales side.”
Tarantino said he was not disappointed that fourth-quarter earnings didn’t meet expectations, because the company spent aggressively on marketing and new products in the quarter.
“I think it was the right move and not completely surprising,” he said.
