Coffee Holding Co. to close factory amid falling Harmony Bay sales

Core Viewpoint - Coffee Holding Co. is closing its Comfort Foods manufacturing facility in Massachusetts due to declining sales of its Harmony Bay brand, shifting production to its New York plant to improve efficiencies and reduce costs [1][4]. Group 1: Company Operations - The Comfort Foods site was acquired in 2017 as part of Coffee Holding's takeover of Comfort Foods [2]. - The company also acquired Empire Coffee Company in November 2022, indicating a strategy to expand its operations on the East Coast [2]. - The transfer of production to the New York site is expected to enhance manufacturing and logistical efficiencies, positively impacting profitability [4]. Group 2: Sales and Financial Performance - Coffee Holding reported a 27% increase in revenue for the fiscal third quarter ending July 31, with net sales rising to $23.9 million from $18.8 million year-over-year [4][5]. - Despite revenue growth, the company faced a net loss of $1.2 million for the quarter, primarily due to a $2.2 million negative impact from derivative positions [5]. - The decline in sales for the Harmony Bay product line is attributed to reduced shelf space for regional brands in major supermarket chains, affecting overall profitability [3].