Coffee Holding Co. acquires Comfort Foods
Feb. 24, 2017
by Eric Schroeder
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Comfort Foods uses 100% Arabica beans to position its Harmony Bay brand as a premium coffee.
STATEN ISLAND, N.Y. — Coffee Holding Co., Inc. said it has acquired Comfort Foods Inc. for $2.3 million. Based in North Andover, Mass., Comfort Foods is a medium-sized regional roaster, manufacturing both branded and private label coffee for retail and food service customers located predominantly in the northeast marketplace. The company had approximately $7.3 million in sales over the past 12 months.
Founded in 1992 as a distributor of gourmet coffee in distinctive expanded canisters, Comfort Foods has used 100% Arabica beans to position its Harmony Bay brand as a premium coffee. The company offers its coffee in a variety of can sizes, ranging from 10-oz to 48-oz, throughout the United States in various grocers, mass-merchants and specialty stores.
In addition, over the past five years, Harmony Bay has introduced its products in its 4-corner flexible packaging bags. The bags are available in various product profiles in volumes of 28 oz to 40 oz. Comfort Foods also provides roasting and packaging services for various private labels, co-packing and licensing customers.
Comfort Foods had approximately $7.3 million in sales over the past 12 months.
“We are excited to bring Comfort Foods and its Harmony Bay brand coffee into our already diverse portfolio of strong regional retail coffee brands,” said Andrew Gordon, president and chief executive officer of Coffee Holding. “The Harmony Bay brand, with its uniquely patented molded canisters and diverse flavor profiles is currently sold in over 1,000 stores and will increase our overall presence and subsequent economies of scale at many of these current retail accounts in the northeast. In addition, through our national platform, we believe we can expand the brand’s distribution over a wider marketing area.”
With the acquisition, Mr. Gordon said Coffee Holding will once again begin roasting and packaging its products on the East coast, in Comfort Foods’ fully equipped and spacious modern roasting facility.
“We believe this transaction will create logistical savings for many of our sales transacted on the eastern seaboard and will also increase our competitive advantage at a number of current and potential accounts in the northeast marketing area,” he said. “We expect the synergistic value of roasting both in Colorado and Massachusetts to translate to higher margins and renewed efficiencies for both current and potential new business.”
Coffee Holding Co., Inc. is a wholesale coffee roaster and dealer in the United States. The company’s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.