The US-based coffee trader, roaster and distributor has reported continued losses at its Steep N Brew specialty roaster, but overall company sales continue to rise from subdued revenues reported in 2021
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Steep N Brew attributed a quarterly loss to increasing costs and ‘poor performance’ in sales | Photo credit: Sonofresco
Coffee Holding Co. has credited an increase in sales to long-term customers as driving the company’s 14% sales rise for its second quarter ending 30 April, despite inflationary headwinds and an operating loss at its Steep N Brew speciality roasting division.
Reporting its financial results for the three months ending 30 April 2022, Coffee Holding Co. posted net sales of $16.4m, compared to $14.5m for the same period in 2021.
However, following continued losses from the company’s specialty coffee Steep N Brew subsidiary, a regional specialty roaster acquired by its Generations Coffee Company LLC subsidiary in 2018, Coffee Holding Co. reported an overall net loss of $368,096 for the quarter, compared to a net income of $357,044 for the same period in 2021.
The Generations/Steep N Brew losses have been attributed to increasing costs, the impact of Covid-19 and ‘poor performance’ relating to sales, with CEO Andrew Gordon announcing that the company will now be looking to restructure operational activities at the subsidiary.
“Moving forward, I believe we have a clear direction on how to grow both our sales and profits as we had in the past by focusing on sales of unroasted green coffee beans to small and medium size roasters, sales of private label products to large wholesalers and retailers and a continued push on our own legacy brands. I believe this has been and will continue to be a winning formula in our efforts to grow both our sales and profits,” said Gordon.
Coffee Holding Co. is a green coffee trader, roaster and equipment manufacturer based in New York, US. The company controls subsidiaries Harmony Bay, a premium coffee brand, Organic Products Trading Company, green coffee trader, and Sonofresco, a roasting equipment manufacturer.
The company’s retail coffee brands, which are distributed to foodservice clients and retail locations throughout the US and Canada, include Cafe Caribe, Café Supremo, S&W Premium, Premier Roasters and Via Roma.