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COFFEE HOLDING CO INC

CIK: 1007019 Filed: January 28, 2026 10-K

Key Highlights

  • Undergoing a significant strategic transformation, balancing expansion through acquisition with operational consolidation for future growth and efficiency.
  • Actively pursuing strategic acquisitions (e.g., Empire Coffee Company for $800,000) and exploring new market segments through investments (e.g., The Ryl Company LLC for $850,000).
  • Leverages a diversified business model, operating across wholesale green coffee, private label, branded products, and equipment sales, providing multiple revenue streams.
  • Benefits from a highly experienced management team, with the President/CEO having 44 years and the Executive VP having 46 years of industry experience.

Financial Analysis

COFFEE HOLDING CO INC Annual Report: Navigating a Strategic Transformation

Coffee Holding Co Inc. is undergoing a significant strategic transformation. This summary provides a clear, comprehensive overview of the company's performance and strategic direction for the fiscal year ending October 31, 2025, based on its annual report. It highlights key developments, financial insights, and future prospects for retail investors.

1. Business Overview

Coffee Holding Co Inc. operates across multiple segments of the coffee industry:

  • Wholesale Green Coffee: The company sources and sells unroasted beans globally to roasters and coffee shops.
  • Private Label Coffee: It roasts, blends, and packages coffee for other companies under their own brands.
  • Branded Coffee: The company markets and sells its portfolio of eight proprietary coffee brands, including those under the S&W trademark license.
  • Equipment Sales: Through its Sonofresco subsidiary, the company also sells tabletop coffee roasting equipment.

The fiscal year ending October 31, 2025, marked a period of significant strategic transformation. The company pursued both expansion and consolidation efforts to enhance efficiency and strengthen its market position.

2. Management Discussion & Analysis Highlights

This section explores key operational events, their financial implications, and strategic rationale:

  • Acquisition of Empire Coffee Company (November 2024): Early in the fiscal year, Coffee Holding Co Inc. acquired the assets of Empire Coffee Company for $800,000. This strategic move expanded the company's roasting and packing capabilities, broadened its customer base, and formed a new subsidiary, Second Empire, LLC, to manage these operations. The company expects this acquisition to contribute to revenue growth and operational synergies.
  • Consolidation through Comfort Foods Facility Closure (October 2025): By the end of the fiscal year, the company closed its Comfort Foods manufacturing facility in North Andover, Massachusetts. Declining sales of regional brands and a broader market shift by major retailers towards national brands drove this decision. The company is consolidating production into the newly acquired Second Empire facility, aiming to streamline operations, reduce overhead costs, and improve overall efficiency. While potentially incurring one-time closure costs, this move should yield long-term cost savings and operational benefits.
  • Failed Merger with Delta Corp Holdings Limited (April-June 2024): Shareholders rejected a proposed merger in April 2024 that would have significantly altered the company's structure, leading to its termination in June 2024. This indicates the company will pursue growth through organic means and smaller, targeted acquisitions rather than a large-scale structural change.
  • Strategic Investment in The Ryl Company LLC (December 2025): After the fiscal year ended, Coffee Holding Co Inc. made a non-controlling investment of $850,000 in The Ryl Company LLC. This investment signals the company's interest in exploring new market segments, potentially in the ready-to-drink or functional beverage space, and diversifying its portfolio beyond traditional coffee products.
  • Experienced Leadership: The company benefits from a highly experienced management team. Its President/CEO and Executive VP bring 44 and 46 years of industry experience, respectively. This deep institutional knowledge is a significant asset in navigating the complex coffee market.
  • Market Trends & Regulatory Impact: The evolving retail landscape represents the most significant market trend affecting Coffee Holding Co Inc., characterized by major retailers prioritizing national branded products over regional or private label offerings. This trend directly influenced the decision to close the Comfort Foods facility. Other relevant trends include consumer demand for specialty coffee, health and wellness trends (addressed by the Ryl Company investment), and increasing pressure for sustainability and ESG practices. Regulatory changes related to food safety, labeling, and import/export tariffs could also impact operations and costs.

3. Risk Factors

Investing in Coffee Holding Co Inc. comes with several inherent risks:

  • Commodity Price Volatility: Fluctuations in green coffee bean prices, driven by weather, geopolitical events, and supply/demand dynamics, can significantly impact the cost of goods sold and profitability.
  • Intense Competition: The coffee market is highly competitive, with numerous national brands, private labels, and specialty roasters vying for market share. Pricing pressures and marketing costs can erode margins.
  • Changing Retail Landscape: The shift by major retailers towards national brands, as evidenced by the Comfort Foods facility closure, poses a significant threat to the private label and regional brand segments.
  • Supply Chain Disruptions: Global events, transportation issues, and climate change can disrupt the sourcing and distribution of coffee beans and finished products.
  • Integration Risk: Successfully integrating the acquired Empire Coffee Company operations is critical to realizing anticipated synergies and benefits.
  • Dependence on Key Customers: A significant portion of revenue may come from a limited number of large wholesale or private label customers, making the company vulnerable to changes in their purchasing decisions.
  • Regulatory Compliance: Adherence to food safety, labeling, and environmental regulations can incur costs and potential liabilities.

4. Competitive Position

Coffee Holding Co Inc. leverages its diversified business model as a core competitive advantage:

  • Integrated Value Chain: Operating across wholesale green coffee, private label, and branded products (including specialty, instant, and equipment) provides multiple revenue streams and reduces reliance on any single market segment.
  • Extensive Green Coffee Network: A strong presence in the wholesale green coffee market, serving a wide array of specialty roasters, provides stable demand and market intelligence.
  • Brand Portfolio: Ownership of eight proprietary brands and the S&W trademark license offers diverse consumer appeal and market reach.
  • Operational Flexibility: The strategic consolidation of manufacturing facilities aims to create a more agile and cost-effective production footprint.

5. Future Outlook

The company's strategy clearly focuses on growth, efficiency, and market diversification:

  • Operational Efficiency: The company's closure of the Comfort Foods facility and consolidation into the Second Empire facility demonstrates its commitment to optimizing production and reducing costs.
  • Growth through M&A: The Empire Coffee Company acquisition signals the company's active pursuit of strategic acquisitions and partnerships to expand capabilities, customer base, and market reach. The company explicitly states it will continue to seek such opportunities.
  • Brand Development: The company maintains a continued focus on growing existing brands, particularly Harmony Bay, and leveraging the S&W license.
  • Customer Base Expansion: It is making efforts to increase the wholesale green coffee customer base.
  • Market Diversification: The investment in The Ryl Company LLC suggests an exploration of new, potentially higher-growth segments within the broader beverage industry.

In summary, Coffee Holding Co Inc. is undergoing a significant strategic transformation, balancing expansion through acquisition with operational consolidation. These moves position the company for future growth and efficiency, and understanding these strategic shifts is key for investors.

Risk Factors

  • Commodity Price Volatility: Fluctuations in green coffee bean prices can significantly impact the cost of goods sold and profitability.
  • Intense Competition: The highly competitive coffee market can lead to pricing pressures and erosion of margins.
  • Changing Retail Landscape: The shift by major retailers towards national brands poses a significant threat to the private label and regional brand segments.
  • Supply Chain Disruptions: Global events, transportation issues, and climate change can disrupt the sourcing and distribution of coffee beans and finished products.
  • Integration Risk: Successfully integrating the acquired Empire Coffee Company operations is critical to realizing anticipated synergies and benefits.

Why This Matters

Coffee Holding Co Inc. is undergoing a significant strategic overhaul, making this 10-K crucial for investors. The $800,000 acquisition of Empire Coffee Company signals a clear intent for growth, expanding roasting capabilities and customer reach. Simultaneously, the closure of the Comfort Foods facility demonstrates management's pragmatic approach to optimizing operations and cutting costs in response to evolving retail trends, even if it incurs short-term expenses.

Beyond consolidation, the post-fiscal year investment of $850,000 in The Ryl Company LLC is particularly noteworthy. This move indicates CHCI's proactive exploration of new, potentially high-growth market segments like ready-to-drink or functional beverages, diversifying its portfolio beyond traditional coffee. For investors, these actions collectively suggest a company actively managing its business, seeking growth opportunities while streamlining operations and adapting to market shifts. The rejection of a larger merger also highlights a preference for targeted, manageable growth, which could be viewed as a more prudent strategy.

Ultimately, these strategic decisions aim to position CHCI for future efficiency and growth. The experienced management team, with decades in the industry, provides a stable hand during this transformation. Investors should monitor the successful integration of the Empire acquisition and the performance of the new Second Empire facility, as well as the initial returns and strategic impact of the Ryl Company investment, as these will be key indicators of the strategy's success.

What Usually Happens Next

Following this 10-K, investors should closely monitor the operational execution and financial impact of Coffee Holding Co Inc.'s strategic transformation. The immediate focus will be on the successful integration of Empire Coffee Company into Second Empire, LLC. Future quarterly reports (10-Q filings) and earnings calls will provide crucial updates on whether the anticipated synergies, cost savings from the Comfort Foods facility closure, and revenue growth from the expanded capabilities are being realized.

Another key area to watch is the progress and performance of The Ryl Company LLC, given CHCI's recent $850,000 investment. Investors will look for any announcements regarding Ryl's product development, market penetration, and how this non-controlling stake contributes to CHCI's broader diversification strategy. Any further strategic acquisitions or partnerships, particularly those aimed at expanding the wholesale green coffee customer base or exploring new market segments, will be significant milestones that could signal continued aggressive growth.

Beyond specific initiatives, investors should pay close attention to how CHCI navigates broader market trends, including commodity price volatility for green coffee beans and the ongoing shift by major retailers towards national brands. Future filings will reveal the impact of these external factors on the company's financial health, including revenue, profitability, and cash flow. The company's ability to leverage its diversified business model and experienced leadership to maintain its competitive position will be crucial in the coming fiscal year.

Financial Metrics

Fiscal Year End October 31, 2025
Empire Coffee Company Acquisition Cost $800,000
The Ryl Company L L C Investment Amount $850,000
President/ C E O Industry Experience (years) 44
Executive V P Industry Experience (years) 46
Number of Proprietary Coffee Brands 8

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Document Information

Analysis Processed

January 29, 2026 at 09:07 AM

Important Disclaimer

This AI-generated analysis is for informational purposes only and does not constitute financial or investment advice. Always consult with qualified professionals and conduct your own research before making investment decisions.