MILAN — Youngevity International, Inc. (YGYI), a leading omni-direct lifestyle company, announced today that its wholly-owned subsidiary, CLR Roasters, has executed agreements with its Nicaraguan Based Partners, H and H Export and Marisol Silas, whereby the company anticipates expanding its capabilities in Nicaragua through the planned construction of one of the largest processing mills in Central America.
In addition to the agreement to construct new processing facilities, the agreement increases CLR Roasters’ profit participation in the green coffee distribution business with its Nicaraguan Based Partners from 50% to 75% of profits. As part of the agreement CLR is also acquiring the coffee brand Café Cachita.
The construction for the new processing facility is expected to be complete by September of this year in time for the 2020 harvest which will be the second year of the CLR Roasters’ recently signed, 5-year, $250 million green coffee contract.
The new processing facility will sit on 45 acres of real estate in Matagalpa, Nicaragua and is conveniently accessible to the coffee growing regions of Nicaragua. When complete, the planned facility is expected to have 28,000 square feet of office space, a 160,000 square foot warehouse capable of holding 48 million pounds of green coffee, and the ability to process over 53 million pounds of green coffee on an annual basis.
The facility is expected to be equipped with the most modern technology available and to house a highly efficient lab that will allow for consistency in quality.
“We are very pleased to expand our partnership with Alain Hernandez of H and H Export company and Marisol Silas of Silas Family Plantation Group. We cannot think of better people to be in business with in Nicaragua,” stated Dave Briskie, President and CFO of Youngevity, CLR Roaster’s parent company.
“In addition to the new facility we will be retaining our current processing facility, known as La Pita, to produce our certified coffees. Having the ability to keep our organic, rainforest alliance and other certified coffees separate from conventional coffees should provide us with a strong strategic advantage in the market and increased capacity to support growth in the coming years.”
“I am extremely excited about the expanded partnership with Youngevity, CLR, and Siles Familty Plantation,” stated Alain Hernandez, President of H&H Export company. “We have been developing this expanded opportunity for several years and it is very special to see it come to fruition. We expect that these capabilities, along with the strong relationship with our producers, will provide us a competitive edge in this market.”
Ernesto Aguila, Founder of CLR Roasters said, “We are very excited to add a second espresso brand to our product portfolio. Café Cachita provides us with additional shelf space at retail and allows us to be more competitive with our marketing and sales efforts and should drive incremental revenue for our Cafe La Rica brand in the marketplace as well.”
Marisol Siles, President of Siles Family Plantation Group, stated, “With all our teams working together for one common goal this business relationship will be significant for all of us. We have assembled a very strong and experienced team to support logistics, administration, quality control, and local market know-how in support of this major project. Due to the scale of this project we anticipate being better able to support the local community and increase our social responsibility which is a very important part of our culture.”