Youngevity International, Inc., a leading omni-direct lifestyle company, has announced that its wholly owned subsidiary, CLR Roasters, has entered into a 5-year contract for the sale and processing of over 41 million pounds (18,600 tonnes) of green coffee on an annual basis.
Based on current coffee prices and coffee futures it is estimated that this contract will generate revenues in excess of $50 million dollars per year for each year of the 5-year contract.
The purchaser of the coffee is a major coffee importer and exporter with over 7 decades of industry experience and supply to many of the largest coffee brands in the industry.
The relationship with the distribution partner was established with CLR Roasters when they began their green coffee distribution and processing business just four years ago and has been growing steadily each year.
Revenue for this contract covers the period 2019 through 2023 with first shipments to begin in January of 2019.
The contract is predominantly for strictly high grown washed Nicaraguan conventional coffees; however, the contract provides that a significant portion may come from various certified coffees including, Organic, Direct trade, Rain Forest Alliance, UTZ, Bird Friendly, and Siles Family Plantation Group’s (another YGYI wholly owned subsidiary) recently obtained Starbucks C.A.F.E. Practices certification. Pursuant to the contract, coffees will be shipped to the various USA, Canadian, and European ports and the contract will be governed by the Green Coffee Association of NY rules and practices.
“We are very excited to have established a relationship that would yield such a significant contract for our coffee business and business at large. Ernesto Aguila, President of CLR Roasters, and Marisol Siles who leads our wholly owned subsidiary, Siles Family Plantation Group, along with our partnership with Alain Hernandez of H&H Export Group are the primary catalysts in bringing this opportunity to our business.” stated Dave Briskie, President and CFO of Youngevity.
“This type of long-term contract is what we envisioned when we outlined a plan to build scalable coffee operations across multiple vertical segments. The length of the contract will provide us the stability necessary to continually scale and expand operations in Nicaragua.”
Marisol Siles, President of Siles Family Plantation Group, stated, “We have worked tirelessly over the last several years to build a dependable and long-term supply relationship with our local producer partners. It is gratifying to now be positioned to provide and deliver on a contract of this size over the next 5 years that we expect will not only provide value to shareholders, but provide significant employment opportunities for the region of Matagalpa, Nicaragua.”
Steve Wallach, Chief Executive Officer of Youngevity, the parent company that owns all coffee subsidiaries stated, “We have invested millions of dollars in our coffee operations with our sights on creating value for our business. A contract of this size is the accomplishment and hard work of many and should provide significant employment opportunities for many more.”
The company estimates that initially it will be hiring approximately 1000 workers to begin processing the coffee. The new hires will begin work starting the end of August and are planned to scale to full capacity by the end of 2018.
Estimated revenues for the 41 million pounds of green coffee to be sold and processed under the contract are based on the current coffee prices and coffee futures as priced on ino.com as of the close of the market on Friday July 27, 2018.