Coffee Holding Co., Inc. (JVA): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see the engine room of Coffee Holding Co., Inc. (JVA), and honestly, it's a fascinating setup for a coffee player. After reviewing their latest moves, I can distill their business model down to this: they run an integrated supply chain, moving from wholesale green coffee bean procurement to serving major supermarket chains with private label goods, all while managing the volatility of commodity prices. We'll map out exactly how they generate revenue from their eight proprietary brands alongside those big B2B contracts, showing how their $23.9M net sales for the quarter ending July 31, 2025, were built on key resources like their roasting facilities and a team experienced in commodity trading, even as their Cost of Sales reached $20.99 million in Q3 2025.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Key Partnerships

You're analyzing the backbone of Coffee Holding Co., Inc. (JVA)'s operations as of late 2025. Their Key Partnerships are crucial, especially given the volatile commodity markets we saw this year. Honestly, the success of their integrated model hinges on these relationships.

International green coffee bean suppliers for raw material import

Coffee Holding Co., Inc. relies on a global network to secure its raw material. They source only the finest specialty green coffee from key producing regions across Latin America, Africa and Asia. This sourcing strategy is designed to offer a broad mix, including commodity-grade, specialty-grade varieties, and certified options like Organic, Fair Trade, and Rainforest Alliance. The relationship with these suppliers was tested in Q3 2025 when the company used a steep drop in green coffee prices to increase inventories by more than 25% before new tariffs on Brazil imports took effect on August 1, 2025. This inventory build-up required increased borrowing, with borrowings under the credit facility rising sequentially from $3.0 million to $6.25 million.

Major wholesale and supermarket clients for private label distribution

The company serves a diverse client base that includes coffeehouses, restaurants, hotels, health care facilities, vending operators, and retail chains. A significant portion of their business involves roasting, blending, and packaging coffee under the specifications and names of others, which means private label sales to supermarkets are a major focus. In the first quarter ended January 31, 2025, net sales increased to $21,305,285 from $19,540,402 the previous year, attributed to higher sales of private label and branded coffee products. However, maintaining these relationships has meant absorbing some cost shocks; in Q2 2025, the company reported losing money on its largest wholesale customer due to a prior contractual obligation at lower green coffee market pricing. Management noted a potential need to implement price increases for these customers as their 'tariff-free' inventories diminish.

The structure of these sales relationships directly impacts the financial outcomes we see:

Logistics and freight partners for global distribution network

While specific logistics providers aren't named, the operational reliance on them is clear from the inventory strategy. The decision to increase inventory by more than 25% in Q3 2025 to preemptively manage new tariffs required robust coordination with freight partners to move and store the increased volume. This activity is reflected in the negative free cash flow of $4.1 million for Q3 2025 and the increased reliance on the credit facility. The company distributes products throughout the United States and certain countries in Asia.

Financial institutions for commodity futures and options trading

Coffee Holding Co., Inc. actively uses derivative positions to manage price risk, which involves close relationships with financial institutions for trading. This strategy had a significant, albeit temporary, negative impact in the third quarter ending July 31, 2025, where derivative positions represented a $2.2 million negative impact on profitability, contributing to the reported net loss of $1.19 million. The company is optimistic that the recent recovery in green coffee prices will lead to a reversal of these unrealized losses in the fourth quarter. The company also has a credit line with Webster Financial Corp., which had a maximum facility amount of $10,000,000 as of January 31, 2025.

Co-packers or contract manufacturers for overflow production needs

The company operates from its primary roasting and packaging facility in New Jersey and an additional production plant. To handle fluctuating demand and the integration of the recently acquired Empire Coffee Company assets, which became profitable in July 2025, Coffee Holding Co., Inc. likely relies on contract manufacturers for overflow or specialized production runs. This flexibility helps manage capacity without over-committing to fixed assets, which is important when navigating market swings that affect their $22,386,733 working capital position as of January 31, 2025.

The company also has eight proprietary brands, each targeting a different consumer segment.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Key Activities

You're looking at the core engine of Coffee Holding Co., Inc. (JVA) as of late 2025. This isn't just about selling coffee; it's about managing a complex, vertically-integrated supply chain. Here's a breakdown of what keeps the operations running, grounded in the numbers we've seen through the third quarter of fiscal year 2025.

Wholesale green coffee bean procurement and trading

This activity is foundational. Coffee Holding Co., Inc. sources unroasted, high-end Arabica green coffee beans globally. They maintain a portfolio of approximately 115 different specialty coffees to serve their wholesale segment. You're looking at a key operational move in Q3 2025: the company used a price decline to increase inventories by more than 25% ahead of new tariffs on Brazil imports that took effect on August 1, 2025. This segment targets over 300 customer accounts across North America, the Caribbean, and the Asia-Pacific markets.

Custom roasting, blending, and packaging for private label accounts

This is where the company adds value for major retailers and wholesalers who want their own brand on the shelf. Coffee Holding Co., Inc. roasts, blends, and packages coffee for over 30 private labels. The success of this area is clear in the top-line growth; net sales for the fiscal quarter ending July 31, 2025, hit $23.9 million, with higher private label sales being a noted contributor. The cost of sales for the quarter ending January 31, 2025, was $15,573,359, representing 73.1% of net sales for that period, showing improved inventory conditions compared to the prior year's 82.2%.

Managing commodity price risk via futures and derivatives

Dealing in physical commodities means managing volatility, and Coffee Holding Co., Inc. uses derivatives to hedge. This activity is a double-edged sword, as we saw in the third quarter of fiscal 2025. A steep drop in green coffee prices resulted in a $2.2 million negative impact from derivative positions, which contributed to a reported net loss of $1.19 million for that quarter. Still, the company is betting on a reversal, as green coffee prices rallied to new all-time highs since the end of that quarter.

Operating and integrating acquired assets like Second Empire

Strategic acquisitions are a major activity. The integration of Second Empire (formerly Empire Coffee Company assets) is showing tangible results. Management reported that the acquisition is cutting losses by half and increasing sales. Furthermore, Second Empire achieved profitability in July 2025 and is expected to be earnings accretive moving forward. On the operational side, the company announced the closure of its Comfort Foods manufacturing facility in North Andover, MA, at the end of October 2025, transferring that production to the Second Empire facility in Port Chester, NY.

Distribution and sales of eight proprietary coffee brands

Coffee Holding Co., Inc. distributes and sells its own portfolio of brands, which totals eight proprietary brands, each targeting a different consumer segment. The flagship brand, Café Caribe, demonstrated strength, showing 9% growth in the first quarter of fiscal 2025 compared to Q1 2024. Overall revenue performance reflects the strength across all segments; revenue for the last twelve months reached $89.75M, marking a 17.92% increase year-over-year.

Here's a quick look at the recent sales performance across the business:

The company is also focused on cost management, having renegotiated its Staten Island lease to achieve an annual savings of approximately $72,000.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Key Resources

You're mapping out the core assets Coffee Holding Co., Inc. (JVA) relies on to execute its integrated wholesale coffee model. Honestly, for a commodity player, the physical and financial buffers are everything. Here's a look at what's underpinning their operations as of late 2025, drawing from the latest filings.

The financial foundation includes a specific cash position reported from earlier in the year, which you need to keep in mind when looking at their current operational needs. The company reported $2,361,218 in Cash and Cash Equivalents as of the end of Q1 2025. This liquidity, combined with their asset base, forms the first line of defense against market swings.

Here's a quick look at some of the tangible and financial anchors Coffee Holding Co., Inc. is working with, based on recent reporting periods:

The company's intellectual property-its brands-are key differentiators in the wholesale space. They allow Coffee Holding Co., Inc. to capture margin beyond just green bean trading.

• Proprietary brands include Café Caribe, which saw 9% growth in Q1 2025 compared to Q1 2024.
• Other owned and licensed brands include Brooklyn Bean.
• Brands like Café Supremo and Harmony Bay are part of the production being consolidated.

Physical infrastructure is centralized to drive efficiency. You'll note a significant strategic shift in their roasting footprint recently. They are consolidating East Coast production.

• The primary East Coast production hub is the newly acquired Second Empire facility in Port Chester, NY.
• Second Empire was established as a wholly-owned subsidiary to facilitate the November 2024 asset purchase of Empire Coffee Company.
• The company is shifting all East Coast production to Port Chester, closing the Comfort Foods Inc. roastery in North Andover, MA.
• This consolidation is projected to yield about $700,000 in additional annualized net overhead savings.

The inventory of raw materials is a critical, yet risky, asset. Management has been actively managing this based on external pressures, so you see the financing strategy shift to support it. They strategically built up inventory of green coffee beans to hedge against potential tariffs. This required increased borrowing levels, which is a near-term risk to watch as those tariff-free inventories decline. They source both commodity-grade and specialty-grade varieties globally.

Finally, the human capital-the team-is essential for navigating the volatile commodity markets. The management team, led by President and CEO Andrew Gordon, uses sophisticated financial tools to manage this exposure. Their derivative strategy is a core resource, even when it causes short-term negative impacts, like the $2.2M negative impact reported in Q3 2025. The team's experience allows Coffee Holding Co., Inc. to maintain pricing stability for customers while competitors struggle. Finance: draft 13-week cash view by Friday.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Value Propositions

Coffee Holding Co., Inc. (JVA) delivers value through a deeply integrated operational structure and a wide-ranging product offering tailored to diverse market needs.

Integrated supply chain from green bean import to final product

Coffee Holding Co., Inc. operates as a leading integrated wholesale coffee roaster and dealer, managing the process from sourcing to delivery. This integration allows for control over quality and cost structure, which is critical given market volatility. The company imports green coffee beans from key regions in Latin America, Africa, and Asia, offering both commodity-grade and specialty-grade varieties, including certified organic and fair trade options. This end-to-end capability was tested in Q3 2025 when the company increased inventories by more than 25% before new tariffs on Brazil imports took effect on August 1.

Broad product portfolio across various price points and consumer tastes

The company offers a broad array of coffee products spanning the entire spectrum of consumer tastes, preferences, and price points. This is supported by eight proprietary brands, each targeting a different segment of the consumer coffee market. Sales growth in the nine months ending July 31, 2025, reached \$68,535,860, a 20% increase year-over-year, driven in part by these varied offerings.

Private label services for major retailers and wholesalers

A core value proposition is roasting and blending coffees for major wholesalers and retailers across the United States who require products under their own names to compete with national brands. Demand for these private-label brands, including Cafe Caribe and Cafe Supremo, was a major contributor to the Q3 2025 net sales increase of 27% to \$23,910,514 compared to Q3 2024.

Custom blending and food service programs for B2B clients

Coffee Holding Co., Inc. supports its B2B segment with value-added services designed to meet specific client needs. This includes custom blending, package design, and supply-chain management. The diverse client base served includes coffeehouses, restaurants, hotels, health care facilities, vending operators, and retail chains.

Price stability for customers despite rising commodity costs (Q3 2025)

Coffee Holding Co., Inc. has historically used its integrated structure and hedging strategies to maintain competitive pricing for its customers. For the quarter ending July 31, 2025, the company maintained its pricing strategy despite market challenges, though future price increases were noted as a possibility as tariff-free inventories depleted. This strategy came at a cost, as the company reported a net trading loss of approximately \$770,000 related to futures and options contracts in Q3 2025. The company's gross profit margin compressed to 12.2% of net sales in Q3 2025, down from 20.9% in Q3 2024, reflecting these cost pressures.

Here's a quick look at the recent financial performance that underpins these value drivers:

The company's ability to serve B2B clients with custom programs is supported by its operational scale, as evidenced by the 27% increase in Q3 2025 net sales over the prior year.

• Product offerings span whole-bean and ground coffees, single-serve pods, and cold brew formats.
• The company is one of the few that offers products across the entire spectrum of consumer tastes.
• Flagship brand Café Caribe saw a 9% sales increase in Q1 2025.
• The company aims to capitalize on competitors struggling with high coffee prices and market volatility.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Customer Relationships

Dedicated account management for large private label customers is a key focus, as higher sales of private label and branded coffee products contributed to the Q1 2025 net sales increase to $21,305,285 from $19,540,402 in the same quarter the previous year.

The relationship for wholesale green coffee buyers is transactional and volume-based. Agreements with certain wholesale customers generally contain only pricing terms, but some contracts include minimum and maximum purchase obligations at fixed prices. This segment is considered the fastest-growing category in the coffee industry.

For proprietary brand consumers, the relationship is self-service and retail-driven. The flagship brand, Café Caribe, saw sales growth of 9% compared to Q1 2024. The company is working to regain and expand the customer base for the acquired Empire Coffee Company assets.

Long-term contracts with major supermarket chains necessitated a strategic delay in price increases during the latter half of fiscal Q4 of 2024 until national brands moved prices. The company sells its private label and branded coffee to some of the largest retail customers in the United States. The company is consolidating production, expecting to realize roughly $700k of annualized net overhead savings after transferring production from the closing Comfort Foods facility.

Direct sales support for smaller regional roasters and coffee shops is part of the wholesale green coffee product offering, which is sold to large, medium, and small roasters, as well as coffee shop operators. The company's favorable inventory position and derivative strategy allowed it to remain competitive to all its customers during Q1 2025.

Here's a look at the top-line performance reflecting these customer segments through the first three quarters of fiscal 2025:

The company announced a new annual dividend policy of 33% of net earnings, signaling confidence in cash flow generated from these customer relationships.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Channels

You're looking at how Coffee Holding Co., Inc. gets its product-roasted coffee, private-label coffee, and wholesale green coffee-to the end user as of late 2025. The distribution strategy is clearly multi-faceted, mixing direct sales with international reach.

For the latest reported quarter ending July 31, 2025, Coffee Holding Co., Inc. achieved net sales of $23.9M, representing a 27% increase over the prior year's quarter. The trailing twelve months (LTM) revenue leading up to this point was $89.75M, up 17.92% year-over-year.

Direct sales to major wholesale and supermarket retailers

A significant portion of revenue comes from selling roasted and private-label coffee to major wholesalers and retailers. Historically, Coffee Holding Co., Inc. has had to hold off on price increases for these large customers until national brands moved, which impacted revenue and earnings until price increases were implemented in late Fiscal Q4 2024. This channel represents a core, high-volume distribution path.

Direct sales to smaller regional roasters and coffee shops

Coffee Holding Co., Inc. directly serves smaller customers through its wholesale green coffee segment. The company imports unroasted raw beans and resells them to smaller regional roasters and coffee shop operators primarily within the United States and Canada. This segment capitalized on high green coffee prices in 2024, increasing profitability for these wholesale green coffee customers.

International distribution networks (Canada, Asia, Australia, England)

The reach of Coffee Holding Co., Inc. extends beyond the US market. The company engages in marketing and distributing its roasted and blended coffees across several international territories.

• Distribution footprint includes Australia.
• Distribution footprint includes Canada, serving both green coffee buyers and roasted coffee markets.
• Distribution footprint includes England.
• Distribution footprint includes certain Asian countries, specifically noted as China in one profile.

Company-owned and third-party distribution logistics

While the specific split between company-owned versus third-party logistics isn't itemized, the overall operation involves manufacturing, roasting, packaging, marketing, and distributing. The company's structure as an integrated wholesale coffee roaster implies internal control over roasting and packaging, with logistics likely a mix of owned fleet and contracted carriers to move product to the various wholesale, retail, and international points of sale.

E-commerce platforms for proprietary brand sales (inferred)

Coffee Holding Co., Inc. sells roasted coffee under eight proprietary brands. Although the search results detail the wholesale and green coffee channels, the existence of proprietary brands strongly infers a direct-to-consumer (D2C) channel, likely utilizing e-commerce platforms to sell these branded products, even if specific e-commerce revenue figures aren't public.

Here's a quick look at the scale of operations feeding these channels as of the latest data points:

The company also offers services like Custom Blending and Food Service Programs, which are inherently tied to these distribution channels. If onboarding takes 14+ days for a new supermarket account, churn risk rises.

Finance: draft 13-week cash view by Friday.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Customer Segments

You're looking at the customer base for Coffee Holding Co., Inc. as of the latest reported figures in 2025. The company structures its sales around three core segments: specialty green coffee distribution, private label, and branded products. This mix allows Coffee Holding Co., Inc. to manage margin pressures across different parts of the coffee market.

The company's overall net sales for the fiscal year ended October 31, 2024, reached $78,562,298, a 15% increase from the prior fiscal year. For the fiscal quarter ending April 30, 2025, revenues grew 22% compared to the second quarter of 2024.

Here is a look at the financial context surrounding these customer-facing operations based on the latest available filings:

The growth in the first quarter of fiscal 2025 was specifically attributed to higher sales of private label and branded coffee products. The flagship proprietary brand, Café Caribe, saw its sales increase by 9% in that same quarter.

The customer segments Coffee Holding Co., Inc. serves include:

• Large supermarket chains and mass-market retailers (private label focus), which required delayed price increases until national brands moved in late fiscal Q4 2024.
• Smaller regional coffee roasters and independent coffee shops, who are wholesale green coffee customers, benefiting from high green coffee prices in 2024.
• Food service operators requiring custom blends and bulk supply, falling under the wholesale/private label umbrella.
• International distributors in key markets (e.g., Canada), as the company engages in distribution in Canada.
• End consumers of the company's eight proprietary brands, each targeting a different segment of the consumer coffee market.

The wholesale green coffee segment was noted as the fastest-growing category in the coffee industry, contributing to the company's overall strength. Furthermore, the acquisition of assets from Empire Coffee Company, Inc. in November 2024 is expected to enhance revenue growth as Coffee Holding Co., Inc. works to regain and expand that lost customer base.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Coffee Holding Co., Inc.'s operations as of late 2025. Understanding this structure is key to seeing where the money goes before it turns into profit.

The Cost of Sales, which represents the direct costs tied to the coffee products sold, reached $20,997,777 in the third quarter of 2025, ending July 31, 2025. This figure accounted for 87.8% of the net sales for that same quarter.

The largest components within the Cost of Sales are the raw material costs. These are dominated by:

• Green coffee beans, where market volatility and tariffs play a big role.
• Packaging materials.

It's worth noting that the cost ratio in Q3 2025 was higher than the previous year, partly due to a net trading loss of approximately $770,000 related to futures and options contracts in the coffee market.

Moving beyond the direct costs, the overhead expenses are significant. Operating Expenses for the first quarter of 2025, ending January 31, 2025, rose to $4,140,895. This was up from $2,863,388 in the prior year's first quarter, largely due to higher payroll costs and expenses associated with the acquisition of Empire Coffee Company.

The broader cost structure also includes necessary operational support functions:

• Logistics, warehousing, and distribution expenses are necessary to move product from roasters to customers.
• General and administrative costs are embedded within the overall Operating Expenses.

Financing costs are another line item to watch. For instance, the company reported a $2,200,000 outstanding balance on its line of credit as of January 31, 2025. While the company has mentioned reducing interest costs previously, the interest expense on this outstanding balance is a recurring cost of capital.

Here's a quick look at how the Q1 2025 sales and cost figures compare:

To be fair, the structure shows a clear trade-off; the company is spending more on operations, partly due to acquisitions, while the Cost of Sales percentage is heavily influenced by commodity price hedging effectiveness.

Finance: draft 13-week cash view by Friday.

Coffee Holding Co., Inc. (JVA) - Canvas Business Model: Revenue Streams

You're looking at how Coffee Holding Co., Inc. actually brings in the money as of late 2025. The top-line number for the most recent reported quarter is solid, showing momentum in the core business, even with market volatility affecting the bottom line.

For the fiscal quarter ending July 31, 2025, Coffee Holding Co., Inc. reported net sales of $23.9M. That's a 27% increase compared to the same period last year, which was $18.8M. Looking at the longer view, the revenue for the trailing twelve months ending July 31, 2025, totaled $89.75M. For the nine months leading up to that date, net sales reached $68,535,860.

The revenue streams are built around several distinct activities within the coffee supply chain. Here are the key components:

• Sales of private-label roasted and blended coffee products
• Sales of wholesale green coffee beans to roasters
• Sales of eight proprietary branded coffee products
• Revenue from coffee roaster manufacturing and sales

To give you a clearer picture of the recent performance driving these streams, here's a quick look at the key revenue and margin figures from that Q3 2025 report:

The growth in net sales, you'll notice, is largely attributed to two areas. There's heightened demand for the private-label brands, which is a steady business. Also, the company saw increased sales of green coffee beans to both wholesale and retail customers. This suggests strong demand across their B2B channels. The proprietary branded coffee products, which include names like Cafe Caribe and Cafe Supremo, are part of this growth story, bolstering the overall sales volume. Still, the margin compression to 12.2% in the quarter shows that cost pressures, like tariffs and derivative trading losses, are definitely hitting the profitability of those sales.

Finance: draft 13-week cash view by Friday.