Business
Coffee Holding Co., Inc. Announces the Purchase of its Colorado Roasting Facility from the City of La Junta, Colorado.
STATEN ISLAND, New York, June 30, 2021 (GLOBE NEWSWIRE) -- Coffee Holding Company (Nasdaq: JVA) (the “Company” or “Coffee Holding Company”) announced the
About this update from Coffee Holding Co., Inc.
[{"type":"text","content":"STATEN ISLAND, New York, June 30, 2021 (GLOBE NEWSWIRE) -- Coffee Holding Company (Nasdaq: JVA) (the “Company” or “Coffee Holding Company”) announced the purchase of the building and surrounding property in La Junta, Colorado, which has been the home to its largest roasting operations since 2005. The purchase price of $900,000 for the 50,000 sq. ft. facility and adjoining 6.278 acres of land was $70,000 below the recent appraised value of the property. “We believe this is a great opportunity to improve the value and operational efficiency of our company,” said Andrew Gordon, President and CEO of Coffee Holding Company. “At a time when the company is basically debt free, to now own our largest and most efficient operating facility, we believe the company will greatly benefit in the near and long term in several ways. First, by eliminating our monthly rental to the city, we will save over $100,000 annually, or $0.02 cents per share. We will also recognize the depreciation on our balance sheet for this asset. More importantly, we will now be able to undergo an expansion at the facility which we expect will enable us to conduct our roasting operations more efficiently. The expansion of this facility, which we hope to begin by late calendar 2021, will allow us to consolidate operations here in La Junta, which we believe will eliminate cost dualities and overheads in our other locations. Eventually, we believe the annualized cost savings will be approximately $2.0 million once operations have been fully consolidated in La Junta. We expect the company will experience increased freight costs associated with shipping product back to the east coast, but we anticipate the overall cost savings will vastly outstrip any potential increases,” concluded Mr. Gordon. About Coffee Holding Coffee Holding Co., Inc. is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company’s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers...