Coffee Holding Co., Inc. (JVA) recently entered into binding agreements with The Jordre Well, LLC to get 49% of the stakes in the cannabidiol (“CBD”) beverage company.
Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States, while The Jordre Well has been led by founders of Cannuka which is present in approximately 2,500 retail locations with its mainstream and highly recognized CBD skin care brand.
As per the agreed terms, The Jordre Well will be helping the JVA in developing and commercializing the CBD-based products by extending its existing coffee brands within its current portfolio. The Jordre Well will also assist Coffee Holding in launching new brands to cater the demand for non-coffee CBD-infused beverages and products by consumers. The Jordre Well is planning utilizing JVA’s scalable network of manufacturing and distribution channels throughout the country as well as other immediately available resources and synergies to accelerate time to market those products.
After the 2018 Farm Bill signed into law in December 2018, Coffee Holding on January 29, 2019, came announcing exploring the potential for CBD coffee in the times ahead, commented Coffee Holding’s Chief Executive Officer Andrew Gordon. The company went through several discussions and much of the consideration to grab the opportunity. And we are glad that our team has finally come to a collaboration agreement with right partner to develop and commercialize those CBD infused line extensions and beverage brands.
The first two JVA brands to offer CBD-infused line extensions will be its gourmet coffee brand, Harmony Bay and company’s flagship dark roast latin espresso brand, Café Caribe. The company will put efforts for earliest possible availability of those brands online which will be offered in single-serve cups and more.
The CBD market is estimated to be reaching $16 billion in the United States by 2025 with the CBD beverage market representing market opportunity of $2.4 billion, according to a Cowen industry report.