STATEN ISLAND, New York, U.S. — Coffee Holding Co., Inc., a leading integrated wholesale coffee roaster and dealer in the United States, today announced that the Company has entered into binding agreements (the “Agreement”) to become a 49% owner in The Jordre Well, LLC (“The Jordre Well”), a cannabidiol (“CBD”) beverage company led by founders of Cannuka, a mainstream and highly recognized CBD skin care brand, available in approximately 2,500 retail locations.
Under the terms of the Agreement, The Jordre Well will assist the Company in the development and commercialization of CBD-infused line extensions for the existing coffee brands within the Coffee Holding portfolio as well as launch new brands that are intended to serve consumer demand for non-coffee CBD-infused beverages and products.
To expedite time to market, The Jordre Well intends to leverage the Company’s scalable network of manufacturing and distribution centers throughout the country, among other immediate benefits and synergies.
“Following the 2018 Farm Bill which legalized hemp, on January 29, 2019, the Company announced that it was beginning to explore the potential for CBD coffee in the near future,” commented Andrew Gordon, Chief Executive Officer of Coffee Holding. “After numerous discussions and much consideration, the Company is happy to have finally found the right commercialization and brand development partner to bring CBD infused line extensions and beverage brands to fruition.”
The Company’s flagship dark roast latin espresso brand, Café Caribe, as well as its gourmet coffee brand, Harmony Bay, will be the first two Coffee Holding Co., Inc. brands to offer CBD-infused line extensions, which will be made available to consumers as soon as possible online in single-serve cups and more. Further, as the Company expects the regulatory landscape for CBD to evolve, the Company intends to expand its CBD infused coffee offerings, and other CBD-related products, through the multiple selling channels currently available to Coffee Holding and The Jordre Well.
According to a Cowen industry report, the U.S. CBD market could represent a $16 billion market opportunity by 2025, with the CBD beverage market comprising $2.4 billion. Furthermore, data released by the National Coffee Association suggests that coffee consumption has reached new highs, and remains America’s favorite drink.
“As Coffee Holding approaches its 50th anniversary, we believe we are in a strong position to bring nationwide leadership to the highly fragmented CBD-infused beverage market, and intend to launch high quality and consistent CBD-infused products for consumers,” added Mr. Gordon.
