The US-based coffee trader, roaster and distributor says that sales of its premium coffee brands will continue to lead sales growth in its fourth quarter, despite increased logistics costs narrowing profit margins
The company cited its branded Café Caribe and Café Supremo products as driving revenue growth | Photo credit: Joshua Newton
New York-based Coffee Holding Co. has attributed increased sales to long-term customers and heightened demand for its espresso products as driving 25% revenue growth in its third quarter.
Reporting on the three months ending 31 July 2022, Coffee Holding Co. posted net sales of $17m, compared to $13.6m for the same period in 2021.
The company cited increased sales of its branded Café Caribe and Café Supremo products along with sales to new customers as helping to offset a decrease in revenues at its Generations/Steep and Brew subsidiary.
However, Coffee Holding Co. President Andrew Gordon said sales at the subsidiary had fallen $5.5m over the first nine months of 2022 compared to 2021.
“I believe we have found the simple solution to continue to grow revenues by remaining focused on our core legacy business of sales of gourmet green coffee beans, sales of our specialty proprietary brands and sales of private label products to some of the largest wholesalers and retailers in the US, rather than relying on acquisitions and/or joint ventures,” said Gordon.
However, Coffee Holding Co. said that sales growth had been hindered by an increase in transport and logistic costs of approximately $500,000 during its third quarter.
“We expect this increase in transportation costs in both bringing green coffee and other supplies to our factories, and shipping finished product to our customers, to continue to weigh our profitability for the immediate future, until supply chain issues mitigate and diesel fuel levels show a meaningful decline,” added Gordon.
Coffee Holding Co. is a green coffee trader, roaster and equipment manufacturer which controls subsidiaries including premium coffee brand Harmony Bay, green coffee trader Organic Products Trading Company, and roasting equipment manufacturer Sonofresco.
Alongside Café Caribe and Café Supremo, the company also distributed the S&W Premium, Premier Roasters and Via Roma retail coffee brands to foodservice clients and retail locations throughout the US and Canada.