Packaged espresso products drive Coffee Holding Co.’s third-quarter growth
The U.S.-based coffee trader, roaster and distributor says sales of its premium coffee brands will continue to lead sales growth in the fourth quarter, despite rising logistics costs squeezing profit margins
The Company Cited its Café Caribe and Café Supremo Branded Products as Drivers of Revenue Growth | Photo credit: Joshua Newton
New York-based Coffee Holding Co. attributed increased sales to long-term customers and increased demand for its espresso products as the driver of 25% revenue growth in the third quarter.
Reporting for the three months ending July 31, 2022, Coffee Holding Co. had net sales of $17 million, compared to $13.6 million for the same period in 2021.
The company cited increased sales of its Café Caribe and Café Supremo branded products as well as sales to new customers as helping to offset a decline in revenue from its Generations/Steep and Brew subsidiary.
However, Coffee Holding Co. chairman Andrew Gordon said the subsidiary’s sales fell $5.5 million in the first nine months of 2022 compared to 2021.
“I think we have found the simple solution to continue growing our revenue by staying focused on our core business, which is selling gourmet green coffee beans, selling our exclusive specialty brands and selling branded products. home to some of the largest wholesalers and retailers in the United States, rather than relying on acquisitions and/or joint ventures,” Gordon said.
However, Coffee Holding Co. said sales growth was hampered by an increase in transportation and logistics costs of about $500,000 in its third quarter.
“We expect this increase in transportation costs, both to bring green coffee and other supplies to our factories and to ship the finished product to our customers, will continue to weigh on our profitability in the immediate future. , until supply chain issues subside and diesel fuel levels show a significant decline,” Gordon added.
Coffee Holding Co. is a green coffee trader, roaster and equipment manufacturer that controls subsidiaries such as premium coffee brand Harmony Bay, green coffee trader Organic Products Trading Company and equipment manufacturer of Sonofresco roasting.
In addition to Café Caribe and Café Supremo, the company also distributed the S&W Premium, Premier Roasters and Via Roma coffee brands to foodservice customers and retail outlets in the United States and Canada.