Coffee Holding Co., Inc.

What they do

Coffee Holding operates across three product categories: wholesale green coffee (unroasted beans imported from origins including Colombia, Mexico, Kenya, Indonesia, Brazil and Uganda and sold to roasters and coffee shop operators), private label coffee roasted, blended and packaged under customers' own brand names, and branded coffee sold under eight proprietary and licensed brands. It also sells tabletop coffee roasting equipment through its Sonofresco, LLC subsidiary. Private label and branded coffee are sold in the United States and certain Asian countries to supermarkets, wholesalers and retail customers, while green coffee — including over 90 specialty offerings — goes mainly to specialty gourmet roasters in the U.S., Canada and other international markets. The company roasts to order and delivers within 72 hours of roasting, and operates a Second Empire, LLC facility in Port Chester, New York.

Revenue drivers

• Wholesale green coffee — Unroasted imported beans sold to large and small roasters and coffee shop operators; the company describes over 90 specialty coffee offerings sold primarily to specialty gourmet roasters in the U.S., Canada and multiple international countries.
• Private label coffee — Coffee roasted, blended and packaged to customer specifications and brand names, including for supermarkets; sold through the U.S. and certain Asian countries to supermarkets, wholesalers and retail customers.
• Branded coffee — Coffee roasted and blended to the company's own specifications and sold under eight proprietary and licensed brand names across different market segments.
• Roasting equipment and acquired brands — Tabletop coffee roasting equipment sold through Sonofresco, plus regional brands such as Harmony Bay acquired with Comfort Foods; the Comfort Foods manufacturing facility in North Andover, Massachusetts was closed by the end of October 2025, with production moved to the Port Chester, New York facility.

Recent performance

For the quarter ended July 31, 2026, net sales were $21,686,262, down $2,224,252 or 9.3% from $23,910,514 a year earlier, which the company attributed to a sustained decline in green coffee prices that began in late January 2026, prompting lower prices and promotions for wholesale roasted customers and lower prices for wholesale green coffee customers. Cost of sales fell to $16,262,131, or 75.0% of net sales, from $21,655,486, or 90.6% of net sales, helped by a favorable inventory position bought in the first half of the fiscal year, tariff refunds and a net gain on trading activity versus a net loss a year earlier. Gross profit rose to $5,424,131, or 25.0% of net sales, from $2,255,028, or 9.4%, and operating expenses decreased to $3,099,801 from $3,350,179. The quarter produced net income of $1,993,438, or $0.35 per basic and diluted share, versus a net loss of $1,205,413, or $0.21 per share, a year earlier. For the nine months ended July 31, 2026, net sales were $69,378,258, up $842,398, and gross profit was $15,036,136, or 21.7% of net sales, versus $11,089,615, or 16.0%.

Strategy

The company is consolidating East Coast manufacturing into its Second Empire facility in Port Chester, New York, after closing the Comfort Foods plant in North Andover, Massachusetts by the end of October 2025, which it expects to reduce duplicative overhead and improve efficiency. It has continued to invest in sales reach, including the addition of a west coast sales manager to grow private label and branded coffee sales to new customers, and it acquired substantially all of the assets of Empire Coffee, a New York private-label roaster, on November 11, 2024. Management says it chose not to pass most tariffs on to wholesale roasted customers during 2025, retaining 100% of that roasted customer base, and now expects tariff refunds to benefit earnings. The company also reports it has secured significant new business recently. Its 10-K discloses a September 29, 2022 Merger and Share Exchange Agreement with Delta Corp Holdings Limited entities under which the company would become a subsidiary of Pubco, a transaction that would cancel outstanding shares.

Risks

• Single-commodity concentration — The business is centered on essentially one commodity, coffee, so any decrease in coffee demand would harm results more than if the product line were diversified.
• Green coffee price volatility — Coffee bean supply and prices are volatile and outside the company's control; the quarter ended July 31, 2026 was described as the most volatile three months in coffee market history, with a $1.00 per pound trading range and daily swings reaching $0.50 per pound.
• Tariffs and trade policy — The 10-K risk factors cite tariffs, changes to trade agreements or tax conventions, and inflation as factors that could cause longer sales cycles, lower product prices, reduced licensing renewals, customer disruption or foreign currency fluctuations.
• Financing and covenant constraints — The 10-K lists the company's ability to obtain additional financing and to comply with restrictive covenants under its current financing among the factors that could affect it.

Outlook

CEO Andrew Gordon said the company is well positioned moving through the end of calendar 2026 into calendar 2027 to grow revenue, gross margins and profitability, citing continued green coffee volatility, national brands showing no indication of price decreases, and significant new business recently secured. Management said tariff refunds received in the quarter contributed approximately $0.06 per share to earnings and expects additional refunds to enhance earnings over the next two quarters. It also characterized its prior decision not to charge most wholesale roasted customers tariffs in 2025 as correct, saying it retained 100% of its roasted customer base and maintained historical profit margins over the last several quarters.