Slide 1: Coffee Holding Co., Inc.
Coffee Holding Co., Inc. NASDAQ:JVA 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission (SEC) filings and otherwise. The Private Securities Litigation Reform Act of
Slide 3: Company Snapshot
Company Snapshot • Family Operated Business - 35+ years • May 2005 IPO (AMEX:JVA - $5.00) • Moved to NASDAQ - March 16, 2010 • Only horizontally integrated company in the industry • Core Business -Private Label Coffee, Branded Coffee and Specialty Green Coffee • “ONE STOP SHOP” for our customer’s co
Slide 4: Key Statistics
Key Statistics Market Statistics Stock Price 2/27/2012 $ 8.05 Shares Outstanding (Diluted) 6.4 52 Week High $ 30.98 Market Capitalization (Diluted) $ 51.5 52 Week Low $ 3.90 Plus Debt¹ $ 1.8 Avg. Daily Volume (3 mo.) 327,390 Less Cash¹ $ 4.2 Shares Outstanding (Basic) 6.4 Enterprise Value $ 49.1 Own
Slide 5: Experienced Management Team
Experienced Management Team Our key management team has over 50 years experience in the coffee industry Andrew Gordon, President and CEO Employed by Coffee Holding for over 26 years Procures all green coffee and trades the commodity market on a daily basis Oversees both the branded and private label
Slide 6: Investment Highlights
Investment Highlights • National distribution with platform for growth • Positioned to profitably grow through varying cycles of the coffee market • Favorable industry trends • Strong customers and alliances • Diverse portfolio of branded coffees • Significant revenue and income growth • Strong bala
Slide 7: Overview
Overview Coffee Holding Company is one of the leading manufacturers of private label coffee in the U.S. We pack for wholesalers and retailers located throughout the Continental U.S., Canada and Pacific Rim. We have grown our customer base for over forty (40) years and enjoy the reputation for being
Slide 8: Strong Industry Growth
Strong Industry Growth U.S. Coffee Imports Continue Upward Path¹ (Billion $) 8
Slide 9: What Makes Us Different?
What Makes Us Different? CHC is one of the few coffee companies offering a broad array of coffee and teas across the entire spectrum of consumer tastes, price points, product types and distribution channels Our horizontal integration allows CHC to do well under varying economic conditions and market
Slide 10: Full Suite Of Products
Full Suite Of Products Retail branded coffee Mainstream retail private label coffee Specialty retail coffees both private label and branded Wholesale specialty green and gourmet whole bean coffees Food service Instant coffees Niche products 10
Slide 11: CHC Customer Advantage
CHC Customer Advantage CHC has the capability to roast, grind & pack coffee in can/brick pack. Have capability to pack whole bean/ground coffee in valve bags We are also certified ORGANIC/ FAIR TRADE We can provide a agglomerated, crystal, organic instant coffees packed in glass/plastic We are here
Slide 12: Manufacturing Facilities
Manufacturing Facilities Coffee Holding has two (2) manufacturing facilities: La Junta, Co Have capacity to roast and ground coffee in can and brick formats Can formats - 11, 11.5, 12, 13, 23, 26, 33.9, 34.5,36,39 oz sizes Brick format - 8.8, 11, 11.5, 12, 13 oz sizes La Junta, CO-50,000 sq ft Cleve
Slide 13: Revenue Mix
Revenue Mix Specialty Green Coffee ~60% % of Revenue ¹ Unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators Private Label Coffee ~25% Coffee roasted, blended, packaged under customer specifications and sold under a white label brand Brande
Slide 14: Specialty Green Coffee
Specialty Green Coffee Approx. 60% of revenues Charter Member of the Specialty Coffee Association 300+ specialty green coffee customers and regional roasters, coffee houses, single store operations and mall coffee stores. Direct contact with specific farmers in producing countries to ensure certain
Slide 15: Private Label Coffee
Private Label Coffee Approx. 25% of revenues Roast, Ground, Pack coffee for Retail, Wholesale, Mass Mdse, Club under their corporate label Key customers - Sears (KMart), Family Dollar, Associated Wholesaler Grocers, Kansas City , Winco, Raley’s, Sunflower Markets and Ingles Markets. 15
Slide 16: Branded Label Coffee
Branded Label Coffee Approx. 15% of revenues Five (5) proprietary brands, Café Caribe, Café Supremo, Via Roma, Fifth Avenue and Don Manuel 100% Colombian coffee License with Del Monte for North American rights to S&W Gourmet coffees 16
Slide 17: Branded Coffee Labels
Branded Coffee Labels Café Caribe Fifth Avenue Specialty espresso that targets A blended coffee that is a espresso coffee drinkers in the popular alternative to national Hispanic market branded coffee. S&W (Licensed Brand) An upscale canned coffee established in 1921 Via Roma Italian espresso target
Slide 18: Recent Acquisition - 2010
Recent Acquisition -2010 Organic Products Trading Co., Vancouver, WA in April 2010 became a wholly owned subsidiary of Coffee Holding Co. OPTCO is one of the largest purveyors of top quality sustainable coffees in North America and their over $10.0 million in annual revenues has boosted a thriving a
Slide 19: Joint Ventures
Joint Ventures Coffee Holding Co., entered into a joint venture with Caruso’s Coffee of Brecksville, Ohio. Generations Coffee Company, LLC, a Delaware limited liability company engages in the roasting, packaging and sale of private label specialty coffee products from its Brecksville location. Coffe
Slide 20: Socially Responsible
Socially Responsible Cup for for Education was founded in 2003 by Karen Gordon, Director of Specialty Green Coffee of Coffee Holding Co. Cup is a non-profit with 501 3C status. Cup works hard in coffee communities around the world in creating better learning environments for some of the poorest chil
Slide 21: Weekly “C” Market Report
Weekly “C” Market Report Coffee Holding Company, Inc. Coffee Market Report Friday, March 2nd , 2012 N.Y. Arabica prices continued to chop around for the second week in a row between $2.01 - 2.07 in the most active May contract. Roasters continue to buy futures at current levels, somewhat offsetting
Slide 22: Growth Strategies - Past & Present
Growth Strategies - Past & Present Selectively pursue strategic acquisitions, alliances, private label i.e., Licensing agreement with Del Monte, acquisition of Premier Roasters Joint Venture - Generations Coffee Acquisition of OPTCO Target the U.S. - based Hispanic coffee market, leverage Café Carib
Slide 23: Current Trends
Current Trends Elevated green unroasted coffee prices Forced many small and medium size roasters who in the past have procured full lots of coffee from conventional trade houses to now purchase coffee from Coffee Holding Co. in order to stretch cash flows and reduce commodity market risk exposure Sm
Slide 24: Income Statement
Income Statement (millions of Dollars) Revenue % Growth Gross Profit % of sales Operating Income % of Sales Net Income % of sales Fiscal Year Ending, October 31 2010 83.50 $ 10.60 $ 13% 4.0 $ 5% 24 $ 3% 2011 146.75 76% 8.54 6% 1.20 1% 0.81 1%
Slide 25: Balance Sheet
Balance Sheet Assets Liabilities (millions of dollars) Cash & Equivalents Accounts Receivable Inventories Total Current Assets Property, Plant & Equipment Goodwill Deferred Income Tax Asset Deposits & Other Assets Total Assets Account Payable Line of Credit Due to Broker Income Taxes Payable Total C
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