Javo Beverage narrows loss in year
March 17, 2008
by FoodBusinessNews.net Staff
SAN DIEGO — Javo Beverage Co., Inc. sustained a loss of $7,448,936 in the fiscal year ended Dec. 31, which compared with a loss of $9,926,072 during 2006. Net sales for the year were $12,559,132, up 22% from $10,321,655 during the previous year.
"As a result of the current economic slowdown, consumers are becoming more and more hesitant to spend $5 on a cup of coffee or tea; we address this new found thrift by giving our customers the opportunity to serve consumers the premium beverages they want at a price they are willing to pay … economic conditions aside, restaurants and food service institutions need turnkey beverage solutions that fit their current operating systems and meet their increasingly higher quality standards. Our specialty coffee and tea programs give our customers a system that is high quality in taste, operationally efficient and has the cost savings associated with concentrated dispensed juice and soft drinks," said Gary Lillian, president of Javo.
The company also deployed more than 2,800 new beverage dispensers by Dec. 31, which brought the total to more than 4,300. This is a 187% increase compared with the end of the previous year.
The company said in the coming year it expects to triple the number of major distribution centers supplying concentrated, dispensed coffee and tea products to food service customers and it expects to have a total of 7,500 and 10,000 dispensing locations by the end of 2008.
"We had a very productive 2007, and we expect to see even better results in 2008 and beyond," said Cody C. Ashwell, chairman and chief executive officer. "Since establishing our national footprint, we have begun to reap the rewards of dispensers deployed. We anticipate 8,800 dispensers to be providing recurring revenue to our customers and Javo by the end of the second quarter, and we remain convinced that progress in the second half of the year will move us toward our high end goal of having 10,000 dispensers in operation by year-end."