Coffee Holding Co., Inc. · NASDAQ:JVA
Coffee — Investor Presentation (November 2009)
25 slides from Coffee's investor presentation, Nov 10, 2009
Slide 1: Corporate Presentation November 2009
CHC Coffee Holding Co. Inc. NYSE AMEX: JVA Corporate Presentation November 2009 (c)Coffee Holding Co., Inc. 2009 All Rights Reserved 11-06-09
Slide 2: Important Information & Restrictions on Use
Important Information & Restrictions on Use This document contains certain summary information regarding Coffee Holding Company Inc. (the “Company”). Statements in this document regarding the Company that are not historical facts are "forward-looking statements" within the meaning of Section 27A of
Slide 3: Key Financial Highlights: JVA Trading Data
Key Financial Highlights: JVA Trading Data Stock Price (11/06/09)$4.14 52 Week Low/High $0.56 - $5.21 Avg. Daily Vol. (3m) 30,425 Shares Outstanding 5.4M Public Float (shares), est. 2.3M Institutional Holdings <2% Insider Holdings 58% Valuation Measures Market Cap $22.6M Enterprise Value $25.4M EV/R
Slide 4: What we do...
What we do... Founded in 1971, Coffee Holding Co. (CHC) is a leading integrated wholesale coffee roaster & dealer Two primary business activities: Roasting, blending, packaging for 7 company-owned and licensed brands and 50+ private label accounts Brokering wholesale, unprocessed green coffee to 400
Slide 5: What Makes Us Different....
What Makes Us Different.... Coffee products typically divided among two categories: Traditional commercial ground roast & mass-merchandised (i.e., Folgers, Maxwell House) – a $15B - $16B market Specialty coffees: gourmet, espresso-based and premium – an $11B - $12B market However, CHC is one of the
Slide 6: Revenue Growth & Market Expansion
Revenue Growth & Market Expansion 150 wholesale customers: 26.2M coffee poundage volume Acquired Premier Roasters; signed Del Monte license Formed joint venture with Generations Coffee Co. Signed Entenmann’s license 400+ wholesale customers; 39.2M coffee poundage volume Revenue (millions) $80 $70 $6
Slide 7: Strong Growth in N. American Coffee Consumption
Strong Growth in N. American Coffee Consumption U.S. & Canadian Consumption Up 19% over last 10 years - 3.63 billion pounds in 2008 - Billions of Pounds Consumed 3.05 3.16 3.08 3.22 3.13 3.26 3.46 3.47 3.47 3.54. 3.63 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: International Coffe
Slide 8: Key Hot Beverage Market Drivers
Key Hot Beverage market Drivers 81% of U.S. consumers drink coffee daily¹ U.S. per capita consumption of coffee to grow by an average of 1.1% per year, reaching 26.2 gallons by 2012² Convenience of single serve coffee makers, like Keurig, increasing consumption (now 20% of coffee brewing appliance m
Slide 9: Strong Industry Growth: U.S. Coffee Imports Continue Upward Path
Strong Industry Growth: Historical & Future U.S. Coffee Imports Continue Upward Path¹ (Billion $) 2002 – 2012 CAGR 16.7% $1.5 $1.8 $2.1 $ 2.8 $3.1 $3.5 $4.3 $4.8 $5.5 $6.3 $7.2 Source: 1U.S. Department of Commerce; Sundale Research, Oct 2008 CHC Coffee Holding co NYSE AMEX: JVA 9 2002 2003 2004 2005
Slide 10: Diversified Sales & Distribution Channels
Diversified Sales & Distribution Channels Category Breakdown as % of Sales Specialty Green Coffee 46% Branded 14% Private Label & Food Service 40% CHC Coffee Holding Co NYSE AMEX: JVA 10
Slide 11: Specialty Wholesale Green Coffee 46% of Sales
Specialty Wholesale Green Coffee 46% of Sales Green, Unroasted Coffee Beans 90+ specialty green coffee product offerings 400+ specialty wholesale green coffee customers & regional roasters, including coffee houses, single store operators, mall coffee stores, mail order roasters and sellers Green cof
Slide 12: Private Label Coffee 40% of Sales
Private Label Coffee 40% of Sales CHC roasts, blends and packages 420+ different labels for wholesalers and retailers in the U.S., Canada and internationally Major private label customers include Dollar General and Family Dollar chains Dollar General Dollar General is the largest discount retailer i
Slide 13: Branded Coffee Lines 10% of Revenues
Branded Coffee Lines 10% of Revenues Includes five proprietary labels and two under exclusive license Target both upscale and general market niches that do not compete with existing brands Proprietary Brands Licensed Brands Del Monte's S&W BRAND: 10 yr agreement signed 2004 Entenmann's: 3 yr agreeme
Slide 14: Processing & Packaging Facilities
Processing & Packaging Facilities CHC Offers Customers Two Ideally Situated Geographical Locations for Processing & Shipment 50,000 sq. ft. facility - La Junta, Colorado Corporate Offices & Warehouse - Staten Island, NY 28,000 sq. ft. facility - Brecksville, Ohio (60/40 JV with Caruso’s Coffee) CHC
Slide 15: Market Opportunity
Market Opportunity Extensive distribution capabilities with capacity for growth The only horizontally integrated coffee company selling across all price spectrums Uniquely positioned to grow through varying economic cycles Expansion of Green Mountain coffee partnership Green Mountain Coffee Roasters
Slide 16: CHC Annual Net Sales 26% CAGR
CHC Annual Net Sales 26% CAGR Fueled by Growth Across All Product Categories 2005 – 2008 Revenue CAGR 26% $ in millions $28.0 $41.5 $51.2 $57.4 $71.2 $74.5 2004 2005 2006 2007 2008 YTD 2009 CHC Coffee Holding Co NYSE AMEX: JVA 16
Slide 17: CHC Quarterly Net Sales
CHC Quarterly Net Sales $14.0 $16.6 $15.0 $18.2 $17.6 $20.5 $18.9 $17.9 $17.3 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 CHC Coffee Holding Co NYSE AMEX: JVA 17 $ in millions
Slide 18: CHC Annual Diluted Earnings Per Share
CHC Annual Diluted Earnings Per Share $0.22 $0.25 $0.13 $0.17 ($0.47) $0.29 2004 2005 2006 2007 2008 YTD 2009 CHC Coffee Holding Co NYSE AMEX: JVA 18
Slide 19: Balance Sheet Summary (mrq)
CHC Coffee Holding Co NYSE AMEX: JVA 19 Balance Sheet Summary (mrq) $ in 000’s Jul. 31, 2009 Oct. 31, 2008 Cash and equivalents* $2,016 $963 Commodities held at broker 1,299 342 Inventories 4,504 5,047 Current assets 9,753 11,303 Total assets $19,908 $21,002 Accounts payable and accruals $4,904 $9,1
Slide 20: CHC Growth Strategies
CHC Growth Strategies Selectively pursue strategic acquisitions, alliances, private label i.e., licensing agreement with Del Monte, acquisition of Premier Roasters Target the U.S.-based Hispanic coffee market, leverage Café Caribe & Café Supremo brands Hispanic population in U.S. growing at 9x avera
Slide 21: Key Take-Aways
Key Take-Aways CHC Coffee Holding Co., Inc. NYSE AMEX: JVA Leading coffee roaster and dealer across entire spectrum of consumer tastes, price points, product forms, and distribution channels Riding strong industry growth trends Extensive distribution capabilities with capacity for growth 26% revenue
Slide 22: For More Information
For More Information Coffee Holding Co. 3475 Victory Blvd. Staten Island, NY 10314 Phone: (718) 832-0800 Company Contact Andrew Gordon CEO & CFO (718) 832-0800 info@coffeeholding.com Investor Relations Liolios Group Scott Liolios or Cody Slach (949) 574-3860 info@liolios.com CHC Coffee Holding Co NY
Slide 23: CHC Appendix
CHC Appendix
Slide 24: Management & Corporate Governance
Management & Corporate Governance Coffee Holding Co., Inc. (or “CHC”) is a family owned and operated business for over 30 years Andrew Gordon, President and CEO Employed by Coffee Holding for over 24 years Vice President from 1993 – 1997 Publishes a widely read weekly report on the coffee commodity
Slide 25: Growth Market Opportunity: Private Label
Growth Market Opportunity: Private Label Once seen as knock-offs of name brands, private label products have become increasingly more accepted by consumers as quality has increased and retailers have expanded their offerings of private label goods In fact, 78% of both lower and higher-income consume
Coffee Holding — Investor Presentation (November 2009) on 6ix