Business

Marley Coffee sales jammin

BY CAMILO THAME Business Co-ordinator thamec@jamaicaobserver.com

Wednesday, September 19, 2012    

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JAMMIN Java, which trades as Marley Coffee, saw its revenue growth speed up again during the three months to July 31.

The coffee distributor’s US$560,000 ($50 million) in sales during the quarter was 81 per cent higher than in the previous quarter, whereas the previous two quarters saw the company post quarter-onquarter revenue growth of 61 and 52 per cent.

While still in the take-off stage of its growth, having just started selling coffee in January last year, the company may still be a way from posting profit.

It netted a loss of US$990,000 for the review period, similar to the loss posted in the previous three quarters.

Owned by Rohan Marley, son of legendary reggae icon Bob Marley, Jammin Java has so far targeted retailers in North America, but the company has been focused on diversifying its revenue stream and its geographical markets.

“We initially focused on retail grocery sales and marketing on West Coast and Southwest portions of the United States and western Canada,” said the company in its filing to the USbased Securities and Exchange Commission. “During the past few months, we have expanded distributor relationships in the Midwest and Northeast regions of the United States.”

More recently, the company added two revenue channels — Marley Coffee branded vending machines and Marley Coffee branded Bike Cafés.

The net loss during the review quarter was twice as much as the comparative period the year before, when the company posted a US$480,000 loss.

“The principal reason for the increased net loss was an increase in expenses related to operating and expanding the business including professional fees, payroll, selling expenses, stock compensation expenses associated with options granted, professional fees, and corporate reporting expenses,” said Jammin.

So far, the company has not made a profit, and racked up losses of US$4.9 million since it opened shop.

Until it gets profitable, Jammin Java will rely on a credit arrangement with TCA Global Credit Master Fund and an investment agreement with Fairhills Capital Offshore — both Cayman-registered companies.

The agreements allow the company to borrow up to US$2 million from TCA and sell up to US$2 million worth of its shares to Fairhills.

As of July 19, 2012, the coffee distributor had borrowed US$350,000, and last month it sold US$75,000 of its shares under the investment agreement.

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