I like my caffeine as much as the next guy...maybe moreso somedays. I've stopped by Caribou Coffee on occasion. This is pretty interesting stuff (via Blah3).
Our compliance with Shari'ah principles may make it difficult for us to obtain financing and may limit the products we sell.
Our majority shareholder operates its business and makes its investments in a manner consistent with the body of Islamic principles known as Shari’ah. Consequently, we operate our business in a manner that is consistent with Shari’ah principles and will continue to do so for so long as Arcapita is a significant shareholder. Shari’ah principles regarding the lending and borrowing of money are complicated, requiring application of qualitative and quantitative standards. The negotiation and documentation of financing that is compliant with these principles are generally complex and time consuming. As such, if we have immediate liquidity needs, we may not be able to obtain financing that is compliant with Shari’ah principles on a timely basis. A Shari’ah-compliant company is prohibited from engaging in derivative hedging transactions such as interest rate swaps or futures, forward options or other instruments designed to hedge against changes in interest rates or the price of commodities we purchase. Also, a Shari’ah-compliant company is prohibited from dealing in the areas of alcohol, gambling, pornography, pork and pork-related products.
We may be subject to adverse publicity resulting from alleged statements about Arcapita or complaints or questions from our customers arising from such adverse publicity.
During 2002, we were subject to adverse publicity due to attempts to connect Arcapita with inflammatory and controversial statements made by one of its former outside advisors, in his individual capacity, regarding a variety of subjects, including events in the Middle East. We may be subject to similar adverse publicity in the future. Even if unfounded, such adverse publicity could divert our management’s time and attention and adversely affect the way our customers perceive us, our net sales or results of operations, in the aggregate or at individual coffeehouses, or the market price for shares of our common stock.
The go read this. Interesting. I guess that until they want to go public (which, I guess might help Caribou lessen their dependance on Saudi Petrodollars, but I doubt it) to be more 'mainstream' here. I have a problem spending money with an organiztion who has an "outside advisor" who wants to kill people because their religion isn't his religion (and interestingly enough, his name is not even Dobson).
posted by Jo Fish on 07.20.05 at 09:42 AM
Comments:
Actually, the strange thing here is that Caribou has waited so long to go public. If there was any coffee-shop chain that at least at one time could have played Burger King to Starbucks’ McDonald's, it was Caribou. Based in Minneapolis (AKA Seattle with lots of snow), they had expanded pretty agressively through the whole Midwest by the late 1990s. We liked their decorative approach with the rustic lodge look, a welcome contrast to the souped-up corporate cafeteria that is Starbucks (and really, we don't hate Starbucks all that much).
But then, around 1998, they suddenly stopped expanding. The Northeast was within their reach, and they just stopped.
This Arcapita investment might be why. And actually, if they go public, they might be able to reduce Arcapita's influence. We'd guess management's looking to do exactly that.
Caribou Coffee is owned by Arcapita, a division of the First Islamic Bank of Bahrain. Arcapita also owns Church's Chicken -- or should I say, Mosque Chicken.
I'm kidding. Bahrain is definitely one of the more liberal Arab countries going. I believe they have some form of limited democracy, don't they?
