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].

Core Viewpoint - Coffee Holding Co., Inc. is closing its Comfort Foods manufacturing facility in North Andover, Massachusetts, due to declining sales and profitability in the coffee industry, particularly for regional brands like Harmony Bay [1][5]. Company Strategy - The acquisition of Comfort Foods in 2017 was initially seen as a strategic move to enhance production capabilities on the East Coast, which was essential for competitiveness after the closure of the Brooklyn facility in 2009 [2][3]. - The company has successfully reestablished relationships with large East Coast supermarket chains, contributing to a rebound in annual revenues [4]. Sales and Profitability Challenges - The Harmony Bay product line has experienced a steady decline in sales, attributed to major supermarket chains reducing shelf space for regional brands in favor of national brands, leading to decreased profitability at Comfort Foods [5]. - Despite the challenges, the facility was still relied upon for producing products for new private label customers and increased sales of Café Caribe and Café Supremo Espressos [5]. Operational Improvements - Following the acquisition of Empire Coffee Company, the company plans to consolidate production at the Second Empire facility in Port Chester, New York, which is expected to improve manufacturing and logistical efficiencies [6]. - The closure of the Massachusetts facility is projected to yield annualized net savings of approximately $700,000 by eliminating redundant manufacturing operations on the East Coast [7]. Company Overview - Coffee Holding Co., Inc. is a leading integrated wholesale coffee roaster and dealer in the U.S., offering a wide range of coffee products across various consumer segments and also importing green coffee beans for resale [8].