Coffee Holding Stock

Coffee Holding Co., Inc. operates as an integrated wholesale coffee roaster and dealer located in the United States.

The company’s core products can be divided into three categories:

Wholesale Green Coffee: Unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators;

Private Label Coffee: Coffee roasted, blended, packaged and sold under the specifications and names of others, including supermarkets that want to have their own brand name on coffee to compete with national brands; and

Branded Coffee: Coffee roasted and blended to the company’s own specifications and packaged and sold under the company’s eight proprietary and licensed brand names in different segments of the market.

The company’s private label and branded coffee products are sold throughout the United States and certain countries in Asia to supermarkets, wholesalers, and individually owned and multi-unit retail customers. The company’s unprocessed green coffee, which includes over 90 specialty coffee offerings, is primarily sold to specialty gourmet roasters in the United States, Canada, and multiple international countries.

Growth Strategy

The company’s strategies include selectively pursuing strategic acquisitions and alliances; growing its Cafe Caribe and Cafe Supremo products; and further market penetration of the company’s niche products.

Core Products

Wholesale Green Coffee

As a large roaster-dealer of green coffee, the company is favorably positioned to increase its specialty coffee sales. The company sells green coffee beans to small roasters and coffee shop operators located throughout the United States and carry over approximately 90 different varieties. Specialty green coffee beans are sold unroasted, direct from warehouses to small roasters and gourmet coffee shop operators, which then roast the beans themselves. The company sells from as little as one bag (132 pounds) to a full truckload (44,000 pounds) of specialty green coffee beans, depending on the size and need of the customer.

Private Label Coffee

The company roasts, blends, packages and sells coffee under private labels for companies throughout the United States and Canada. The company’s private label coffee is sold in cans, brick packages and instants in a variety of sizes. The company produces private label coffee for customers who desire to sell coffee under their own name but do not want to engage in the manufacturing process. The company’s private label customers seek a quality similar to the national brands at a lower cost, which represents a better value for the consumer.

Branded Coffee

The company roasts and blends its branded coffee according to the company’s own recipes and package the coffee at the company’s facilities in La Junta, Colorado, and North Andover, Massachusetts. The company then sells the packaged coffee under the company’s brand labels to supermarkets, wholesalers and individually-owned stores throughout the United States.

The company holds trademarks for each of the company’s proprietary name brands and have the exclusive right to use the S&W, IL CLASSICO brand names in the United States in connection with the production, manufacture and sale of roasted whole bean and ground coffee for distribution at the retail level.

Each of the company’s name brands is directed at a particular segment of the coffee market. The company’s branded coffees are:

Cafe Caribe, a specialty espresso coffee that targets espresso coffee drinkers and, in particular, the Latin consumer market;

Don Manuel, is produced from the finest 100% Colombian coffee beans. Don Manuel is an upscale quality product which commands a substantial premium compared to the more traditional brown coffee blends. The company also uses this known trademark in its food service business because of the high brand quality;

S&W, an upscale canned coffee established in 1921 and includes Premium, Premium Decaf, French Roast, Colombian, Colombian Decaf, Swiss Water Decaf, Kona, Mellow’d Roast and IL CLASSICO lines;

Cafe Supremo, a specialty espresso that targets espresso drinkers of all backgrounds and tastes. It is designed to introduce coffee drinkers to the tastes of dark roasted coffee;

Via Roma, an Italian espresso targeted at the more traditional espresso drinker;

Premier Roasters, a line of high quality retail and foodservice products packed in composite cans and poly bags and single serve; and

Harmony Bay, an upscale line of flavored beans in 11oz and 40oz bags, along with single serve offerings in a multitude of unique flavor profiles.

Other Products

The company also offers several niche products, including tea and table-top coffee roasters and grinders.

Raw Materials

The company is a licensed Fair Trade dealer for Fair Trade certified coffee. The company’s North Andover plant operated by its Comfort Foods division, is certified organic by the Organic Crop Improvement Association (OCIA).

The company purchases its green coffee from dealers located primarily within the United States. The dealers supply the company with coffee beans from many countries, including Colombia, Mexico, Kenya, Indonesia, Brazil and Uganda.

Trademarks and Tradenames

The company holds trademarks, registered with the United States Patent and Trademark Office, for all eight of the company’s proprietary coffee brands and an exclusive license for S&W, IL CLASSICO brands for sale in the United States.

Customers

The company sells its private label and the company’s branded coffee to some of the largest retail and wholesale customers in the United States.

Marketing

The company markets its private label and wholesale coffee through trade shows, industry publications, face-to-face contact and through the use of the company’s internal sales force and non-exclusive independent food and beverage sales brokers. The company also uses its web site (www.coffeeholding.com) as a method of marketing the company’s coffee products and itself.

In addition, the company has established relationships with independent sales brokers to market the company’s products across the United States, in areas of the country where the company has not had a high penetration of sales and Canada. The company utilizes its in-house sales personnel to market the company’s private label brands.

Competition

The company’s main competitor is the Massimo Zanetti Beverage Company.

History

The company was founded in 1971. It was incorporated in 1995 under the laws of the state of Nevada. The company was formerly known as Transpacific International Group Corp and changed its name to Coffee Holding Co., Inc. in 1998.