Coffee Holding Company to Close North Andover Facility at End of Month.

Coffee Holding Company will close its Comfort Foods manufacturing facility in North Andover, MA at the end of the month. The facility was acquired in 2017 as part of the Comfort Foods asset purchase. The closure is a strategic decision aimed at streamlining operations and improving efficiency. Andrew Gordon, President and CEO, stated that the acquisition was initially seen as a long-term strategic need for the company.

Coffee Holding Company, Inc. (Nasdaq: JVA) has announced the impending closure of its Comfort Foods North Andover, Massachusetts manufacturing facility by the end of the month Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1]. The facility, which was acquired in 2017 as part of the Comfort Foods asset purchase, played a strategic role in the company's operations. The decision to close the facility is part of a broader effort to streamline operations and enhance efficiency.

Andrew Gordon, President and CEO of Coffee Holding Company, explained that the acquisition of Comfort Foods was initially seen as a long-term strategic need. The facility was acquired for $2 million and offered a "turn-key" manufacturing setup, an established customer base, and a well-known regional brand, Harmony Bay Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1]. The facility helped the company re-establish relationships with large East Coast supermarket chains, contributing to a rebound in annual revenues.

However, the company has experienced a steady decline in sales for the Harmony Bay product line, similar to what many regional brands have faced. Major supermarket chains have reduced shelf space for regional brands to accommodate national brands, leading to a substantial decrease in profitability at Comfort Foods Coffee Holding Company Announces the Upcoming Closing of its Comfort Foods Manufacturing Facility in North Andover, MA^[1]. The closure of the facility is expected to result in operational improvements and cost savings.

The move is part of a broader strategy to consolidate production into the company's Second Empire facility in Port Chester, New York. This transfer aims to improve efficiencies by providing both manufacturing and logistical cost savings. The company anticipates realizing additional annualized net savings of approximately $700,000 through the closure 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 a strategic decision that reflects the company's ongoing efforts to adapt to the evolving coffee industry. By consolidating operations and eliminating redundant facilities, Coffee Holding Company seeks to enhance profitability and remain competitive in the market.