Coffee Holding Co., Inc. (JVA): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to get a clear read on Coffee Holding Co., Inc.'s market engine after a year of big moves; I get it. Honestly, the near-term picture shows a company driving top-line growth while managing serious cost headwinds. Consider this: Q3 Net Sales shot up 27% year-over-year to $23.9 million, yet the gross margin tightened to just 12.2% because of those volatile green coffee costs. They are clearly leaning hard on wholesale and private label-even closing a production facility in October 2025-all while trying to integrate the Second Empire acquisition. If you want to see exactly how their Product portfolio, Place distribution, Promotion focus, and Price adjustments are set up to handle this tension, check out the full 4 P's analysis right here.

Coffee Holding Co., Inc. (JVA) - Marketing Mix: Product

You're looking at the core offerings of Coffee Holding Co., Inc. as of late 2025. The company's product strategy centers on a diversified wholesale model, spanning raw materials to finished, branded goods.

The product portfolio is built on three main pillars: wholesale green coffee, private label, and branded products. As of the fiscal quarter ending July 31, 2025, Coffee Holding Co., Inc. reported net sales of $23.9M, despite a net loss of $1.19M for the period. The company employed 92 people as of December 3, 2025.

The product components are detailed below:

• Wholesale Green Coffee sales to roasters and coffee shops.
• Eight proprietary brands including Café Caribe.
• Extensive private label roasting and blending for major retailers.
• Single-cup pods and instant coffee products diversify the portfolio.
• Recent acquisition, Second Empire, is expected to be earnings-accretive.

The wholesale green coffee distribution segment focuses on selling unroasted, high-end Arabica green coffee beans to roasters and coffee shop operators across North America, the Caribbean, and the Asia-Pacific markets. This segment targets what Coffee Holding Co., Inc. considers the fastest-growing category in the coffee industry.

Specifics on the green coffee offering include:

• Approximately 115 different specialty coffees offered.
• Serving over 300 customer accounts.

For branded products, Coffee Holding Co., Inc. markets eight proprietary brands. The flagship brand, Café Caribe, saw sales growth of 9% compared to the first quarter of 2024.

The private label business involves roasting, blending, and packaging coffee for over 30 private labels for wholesalers and retailers. They also roast and blend company label branded coffee to supermarkets.

Portfolio diversification includes instant coffee products. The company roasts, blends, packages, and sells coffee under private labels in cans, brick packages, and instants of various sizes.

The acquisition of assets from Empire Coffee Company was facilitated through the newly created subsidiary, Second Empire. The purchase price was $800,000, paid on November 7, 2024. This acquisition negatively impacted first quarter 2025 earnings by $0.05 per share. However, Second Empire recorded a profit in July 2025 and is expected to be accretive to earnings on a go-forward basis.

Here's a quick look at some relevant financial metrics tied to the product performance across recent quarters:

Coffee Holding Co., Inc. (JVA) - Marketing Mix: Place

You're looking at how Coffee Holding Co., Inc. gets its coffee products from the roaster to the end-user, which is a critical piece of the puzzle, especially with recent operational shifts. Place, or distribution, is about making sure the right product is on the shelf or available when the customer needs it. For Coffee Holding Co., Inc., this involves a mix of domestic focus and international presence, served through various B2B channels.

The core of Coffee Holding Co., Inc.'s distribution network remains anchored in North America. The company is a leading integrated wholesale coffee roaster and dealer primarily serving the United States and Canada. This domestic and near-international focus is essential for servicing their major wholesale and retail accounts efficiently.

Beyond the primary markets, Coffee Holding Co., Inc. maintains an international footprint. The company engages in distributing its roasted and blended coffees across Australia, England, and China. This international reach supports their overall sales strategy, which is built around multiple avenues for product movement.

The sales channels Coffee Holding Co., Inc. utilizes are diverse, focusing heavily on business-to-business transactions. These channels include wholesale distribution, sales to supermarkets, and servicing individually-owned stores, such as smaller regional roasters and coffee shops. The Q3 fiscal year 2025 net sales of $23.9 million were driven by sales to both wholesale and retail customers.

A significant recent development impacting the physical flow of goods was the strategic decision to rationalize East Coast production. Coffee Holding Co., Inc. announced the closure of its Comfort Foods manufacturing facility in North Andover, Massachusetts, effective at the end of October 2025. This move is designed to consolidate production into the Second Empire facility in Port Chester, New York, following the acquisition of Empire Coffee Company.

This consolidation is a direct play on improving logistical efficiency and cost structure. By moving production, Coffee Holding Co., Inc. expects to realize annualized net savings on overhead of approximately $700k. This action directly affects the place strategy by streamlining the East Coast supply chain for key brands and private labels.

Here's a quick look at the key distribution components and the financial impact of the recent facility realignment:

The transfer of production for private brand, Café Supremo, Café Caribe, and Harmony Bay products to the Second Empire facility is intended to boost efficiencies through manufacturing and logistical cost savings. This strategic shift in physical operations is a concrete action taken to support profitability, especially as the company navigates market dynamics affecting regional brands like Harmony Bay.

The company's ability to service its wholesale and retail partners relies on this network. For instance, the Q3 2025 results showed strong growth in green coffee bean sales to both wholesale and retail customers, indicating that the underlying demand across these channels remains robust, even as the physical production base shifts.

Finance: draft 13-week cash view by Friday.

Coffee Holding Co., Inc. (JVA) - Marketing Mix: Promotion

You're looking at a promotion strategy that heavily favors the back end of the supply chain, which makes sense given Coffee Holding Co., Inc.'s structure as a leading integrated wholesale coffee roaster and dealer. The focus here isn't on mass consumer advertising; it's about locking in volume through strong business-to-business (B2B) relationships. This approach is designed to gain market share directly from competitors who are struggling with the high coffee price environment, as evidenced by several high-profile bankruptcies across the industry. The strategy relies on leveraging a strong balance sheet and hedging to offer competitive pricing to these wholesale partners.

The success of this relationship-driven promotion is visible in the performance of key assets. For instance, the flagship brand, Café Caribe, achieved a notable 9% sales growth in the first quarter of fiscal year 2025 compared to Q1 2024. This growth directly supports the narrative of taking market share from rivals who cannot match the pricing flexibility offered by Coffee Holding Co., Inc. The overall revenue growth in that same period was also 9%, reaching $21,305,285 in net sales for the quarter ending January 31, 2025.

Here's a quick look at how the top-line performance supported the shift in capital allocation strategy:

The emphasis is definitively on B2B and private label solutions, which is the core of Coffee Holding Co., Inc.'s promotion efforts. The company's product portfolio is built around roasting and blending coffees for major wholesalers and retailers who need products under their own names to compete. This is supported by having eight proprietary brands, each targeting a different segment, alongside custom blending and supply-chain management services. The Q3 2025 results, ending July 31, 2025, further confirmed this, with the 27% increase in net sales (to $23.9M) being attributed to higher private label and green coffee sales.

On the investor relations front, which is a key communication channel to the financial audience, the company signaled confidence in its operational improvements and working capital position. Coffee Holding Co., Inc. announced the resumption of an annual dividend policy set at 33% of net earnings. This move is a direct communication of financial stability and future profitability expectations to the market, especially following a period where the company had not paid one for many years.

The promotion effectiveness, measured by market penetration and sales momentum, can be seen in these key operational statistics:

• Café Caribe sales grew 9% in Q1 2025.
• Overall revenue grew 22% in Q2 2025 year-over-year.
• Net sales increased by 27% in Q3 2025 compared to Q3 2024.
• Earnings per share tripled to $0.20 in Q1 2025 from $0.06 the prior year.

Coffee Holding Co., Inc. (JVA) - Marketing Mix: Price

Price, for Coffee Holding Co., Inc. (JVA), involves balancing the cost of volatile green coffee inputs, tariff impacts, and competitive positioning across its wholesale and private label segments. The strategy is intrinsically linked to the management of commodity risk through financial instruments.

The company's Q3 2025 performance reflected significant top-line growth, even as margin structure faced pressure. For the fiscal quarter ended July 31, 2025, Coffee Holding Co., Inc. achieved $23.9 million in Net Sales, marking a 27% year-over-year increase. This revenue growth was attributed to heightened demand for private-label brands and increased green coffee bean sales to wholesale and retail customers.

However, cost pressures significantly impacted profitability metrics. The Gross Margin for Q3 2025 compressed to 12.2% of net sales. This compares unfavorably to the 20.9% gross margin reported in Q3 2024. The cost of sales for the quarter reached 87.8% of net sales, up from 79.1% in the prior year period.

The pricing mechanism is heavily managed by futures and options contracts, which serve as a hedging strategy against green coffee price fluctuations. In Q3 2025, derivative positions represented a $2.2 million negative impact on profitability, and the quarter also saw a net trading loss of approximately $770,000 related to these contracts. Despite this volatility, Coffee Holding Co., Inc. maintained a stable pricing strategy for much of the period.

The management noted that they had held pricing steady, but the depletion of tariff-free inventories suggested that price increases for wholesale and private label customers might become necessary moving forward. To be fair, in an earlier quarter (Q2 2025), rapid increases in green coffee prices had already led to price hikes for their products.

Here are the key financial metrics illustrating the pricing environment in Q3 2025:

The company's inventory management was also a pricing tactic; Coffee Holding Co., Inc. used the Q3 price decline to increase inventories by more than 25% before new tariffs took effect on August 1. This positioned them to sell lower-cost inventory at potentially higher prevailing market prices later on.

The financial structure supporting these pricing decisions included changes in liquidity:

• Borrowings under the credit facility increased from $3.0 million to $6.25 million sequentially.
• Free cash flow was negative $4.1 million for the quarter.
• Cash and cash equivalents declined from $1.8 million to $1.0 million.

Finance: draft 13-week cash view by Friday.