Thursday 07 July 2022

Coffee Holding Co., Inc. announces acquisition of Comfort Foods Inc.

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STATEN ISLAND, NY, U.S. – Coffee Holding Co., Inc. (“Coffee Holding” or the “Company”) (NASDAQ: JVA) announces the acquisition of Comfort Foods Inc., located in North Andover, Massachusetts, a medium sized regional roaster, manufacturing both branded and private label coffee for retail and foodservice customers located predominantly in the northeast marketplace.

In connection with the acquisition, the Company paid $2.3 million for 100% of the capital stock of Comfort Foods which had approximately $7.3 million in trailing twelve month revenues.

Comfort Foods was incorporated in August 1992 as a distributor of quality gourmet coffee in distinctive expanded canisters.

The use of 100% Arabica beans in patented, trademarked expanded canisters has positioned Comfort Foods’ Harmony Bay brand as a premium coffee at a competitive price point.

Multiple coffee profiles are available to customers in their trademarked cans in sizes ranging from 10-48oz throughout the United States in various grocers, mass-merchants and specialty stores.

In addition, over the past five years, Harmony Bay has introduced its products in its 4-corner flexible packaging bags.

These attractive bags are available in various product profiles in volumes of 28-40oz. Comfort Foods also provides roasting and packaging services for various private labels, co-packing and licensing customers.

“We are excited to bring Comfort Foods and its Harmony Bay brand coffee into our already diverse portfolio of strong regional retail coffee brands.

The Harmony Bay brand, with its uniquely patented molded canisters and diverse flavor profiles is currently sold in over 1,000 stores and will increase our overall presence and subsequent economies of scale at many of these current retail accounts in the northeast.

In addition, through our national platform, we believe we can expand the brand’s distribution over a wider marketing area,” said Andrew Gordon, President and CEO of Coffee Holding.

“In addition, we will once again begin roasting and packaging our products on the east coast in the fully equipped and spacious modern roasting facility we have acquired.

In conjunction to closing this transaction, we renegotiated Comfort Foods’ prior lease arrangement, which will now provide us with both a highly efficient and economical space in which to conduct our roasting and packaging operations for the next ten years.

We believe this transaction will create logistical savings for many of our sales transacted on the eastern seaboard and will also increase our competitive advantage at a number of current and potential accounts in the northeast marketing area.

We expect the synergistic value of roasting both in Colorado and Massachusetts to translate to higher margins and renewed efficiencies for both current and potential new business.”

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