Peet's Coffee & Tea, Inc. (Peet's) is a specialty coffee roaster and marketer of fresh roasted whole bean coffee. The Company sells its coffee through multiple channels of distribution, including grocery stores, home delivery, office, restaurant and food service accounts and Company-owned and operated stores in six states. The Company operates its business through two segments: retail and specialty sales. As of December 28, 2008, the Company operated 188 retail stores in six states, through which the Company sells whole bean coffee, beverages and pastries, tea and other related items. Its stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of its coffee through coffee beverages. Each store has a staff person at the bean counter to take orders and assist customers with questions on coffee origins and on home brewing. Upon order, beans are scooped and ground to the customer’s specific requirements.