Business
Swiss Water Decaffeinated Coffee Income Fund declares June cash distribution, amount reduced due to market conditions
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TRADIN...
About this update from Swiss Water Decaffeinated Coffee, Inc.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\nTHE UNITED STATES/\n\n\nTRADING SYMBOL: The Toronto Stock Exchange - SWS.UN\n\n\nBURNABY, BC, June 9 /CNW/ - Swiss Water Decaffeinated Coffee Income Fund\n(the "Fund") today declared a monthly cash distribution of $0.030 per unit\n($0.36 per annum) for the period from June 1 to June 30, 2009. The\ndistribution will be payable to unitholders of record at the close of business\non June 30, 2009, and will be paid on July 15, 2009. The Fund holds all the\noutstanding securities of Swiss Water Decaffeinated Coffee Company, Inc.\n("SWDCC") and makes monthly cash distributions to unitholders based on SWDCC's\nfinancial performance.\n\n\nThe June 2009 distribution amount is a 60% reduction from the previous\nmonthly level of $0.075 per unit ($0.90 per annum), which the Fund has\nmaintained since March 2007. The Fund intends to continue distributions at the\nreduced level until its distributable cash generation improves as a result of\nanticipated increases in sales volumes.\n\n\n"The new distribution level reflects today's very challenging economic\nenvironment. The decline in consumer spending has had a particularly negative\nimpact on the significant portion of our customer base that targets\nout-of-home coffee consumption. In addition, a market-wide shortage of coffee\nfrom Colombia and other Central American countries has caused delays in\nreceiving coffees from some of our toll customers, and reduced orders from all\ncustomers as they work to manage their costs, inventories and coffee blends in\nlight of dramatic price increases for coffees from these regions. The net\neffect has been a larger than expected decrease in our sales volumes and\ndistributable cash. These circumstances necessitated the difficult decision to\nreduce distributions to our unitholders to a more sustainable level," said\nFrank Dennis, Chief Executive Officer of SWDCC and a Trustee of the Fund.\n\n\n"We continue to aggressively pursue initiatives to increase our sales\nvolumes. In March 2009, we launched a marketing campaign in strategic\ngeographic regions, aimed at increasing consumer awareness of the SWISS\nWATER(R) Process and their ability to choose chemical free decaffeinated\ncoffee. We are optimistic that our investment in building consu...