Coffee Holding to close North Andover facility at end of October.

Coffee Holding Co. will close its Comfort Foods North Andover, Massachusetts manufacturing facility at the end of the month. The facility was acquired in 2017 as part of the Comfort Foods asset purchase. President and CEO Andrew Gordon views the acquisition as a long-term strategic need for the company to remain competitive on the East Coast.

Coffee Holding Co., Inc. (Nasdaq: JVA) has announced the closure of its Comfort Foods North Andover, Massachusetts manufacturing facility at the end of this month. The facility, acquired in 2017 as part of the Comfort Foods asset purchase, has been a significant part of the company's strategy to maintain a strong presence on the East Coast Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].

President and CEO Andrew Gordon emphasized the strategic importance of the acquisition. "The Comfort Foods acquisition was initially viewed by us as a long-term strategic need for our company," he said. "After closing our Brooklyn, New York facility in 2009 and moving all production to our larger facility in Colorado, we knew we would eventually need to have production capabilities on the East Coast in the future in order to remain competitive for the business opportunities which could not be serviced efficiently from a logistical and profitability standpoint from the West Coast" Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].

The Massachusetts facility was acquired for $2 million and came with a first-class manufacturing setup, an established customer base, and the regional brand Harmony Bay. The facility helped the company reestablish relationships with large East Coast supermarket chains, contributing to a rebound in annual revenues that had been declining for several years Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].

However, the company has seen a steady decline in sales for the Harmony Bay product line, similar to many regional brands, due to reduced shelf space allocated to regional brands in favor of national brands. This has led to a substantial decrease in profitability at Comfort Foods, impacting the company's overall results over the last few years Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].

With the recent acquisition of Empire Coffee Company through Second Empire and its successful integration into the business, Coffee Holding Co. plans to transfer all production to the Second Empire facility in Port Chester, New York. This move is expected to improve manufacturing and logistical efficiencies, resulting in cost savings and potentially increasing profitability Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].

The closure of the Massachusetts facility is anticipated to realize additional annualized net savings of approximately $700,000 through overhead reduction Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1].