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Caribou Coffee Adds Oomph

MINNEAPOLIS-With Q3 sales up and comps down, the coffee company strengthens its menu.

By Marita Thomas | Updated on November 02, 2006

MINNEAPOLIS-Obsidian Dark, a stronger dark roasted coffee, and the holiday addition of Gingerbread Latte are among Caribou Coffee Co. Inc.’s efforts to lift comp store sales. Licensed coffeehouses and commercial sales are also being ramped up to turn the locally based company’s profit line from red to black.

While total revenue rose 17% to $57 million during third quarter, comp coffeehouse net sales dropped 1%, compared with the same quarter a year ago. And, while commercial sales –that is business-to-business sales –jumped 21%, the company’s net loss reached $3.1 million, 16 cents a share versus $1.2 million, or 8 cents a share for the prior-year’s third quarter.

Acknowledging that comp sales had been down for the past three quarters, during a conference call, Michael Coles, chairman, president and CEO, said, “comp sales turned positive in September.” He cited new initiatives for the holiday season among the factors underway to correct course. “We believe we are on track to deliver positive comps in the fourth quarter,” he said.

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