Coffee Holdings Co., Inc. Issues Business Update Following 2023 Annual Meeting

STATEN ISLAND, New York, Nov. 03, 2023 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. (Nasdaq: JVA) (the “Company”) today provided a business update following its 2023 Annual Meeting held on October 27, 2023.

Andrew Gordon, Chief Executive Officer and Chairman of the Company provided the following update:

“I would like to provide a business update and an update regarding the proposed transaction with Delta Corp Holdings Limited (“Delta”) to employees, shareholders and interested persons of Coffee Holding Co., Inc. (“we”, “us” “our” and the “Company”).

First, let me begin by thanking our long-term loyal shareholders, supporters and interested persons for their patience and understanding over the past thirteen months. I, along with my board of directors, firmly believe this patience will be rewarded in the near future.

Secondly, let me assure everyone that our management team and the management team of Delta are committed to this merger. Our management team believes the combination between our respective companies in terms of future revenue growth and subsequent earnings is projected by us to translate into a stronger stock price and value creation for our shareholders.

The past two years have been difficult for our business. Following COVID-19 and the costly disposal of our under-performing Generations/Steep division, we encountered both a business slowdown and increasing costs, including the expensive relocation of manufacturing equipment to our current operating facilities in Colorado and Massachusetts. In addition, domestic freight costs remain elevated, and our borrowing costs have increased as short-term interest rates have risen significantly over the last 18 months. As a result of these factors, we have seen a significant drag on our earnings.

With some of these challenges behind us, we believe we are looking at an improved outlook heading into 2024. We recently started shipping our products to two new large national supermarket chains along with a third larger regional chain which we believe dominates the Northeast market. These, along with new but smaller customer wins and improved sales of our flagship brand, Café Caribe, in the East Coast and Southwest, are expected to help grow our revenues by 18-25% in 2024 and drive a return to profitability.