US-BASED Jammin Java, which trades as Marley Coffee, more than doubled sales but saw its net loss quadruple to US$1.9 million during the three months to April 30.

The company blamed the losses on the widening of its US distribution and increased staff costs.

“The principal reason for the increase in net loss was the US$1.9 million increase in total operating expenses from the growth of the company and its staffing needs offset by the US$473,950 increase in total other income,” said company filings to the US Securities and Exchange Commission (SEC). “Non-cash payments of common stock included in net loss for the three months ended April 30, 2014 and 2013 were US$166,147 and US$139,701, respectively.”

In fiscal 2014, Marley Coffee established a national grocery distribution network, increased its brand awareness and strengthened its international presence, including its entry into two of the largest chains in the US, Safeway and Kroger.

“Last year, we focused on expansion, and this upcoming year we are prepared to build on that platform with organic growth,” said the company. “Over the course of the last year, we gained distribution in over 5,000 stores in North America and have authorisation in approximately 10,000 stores.”

Sales for the April quarter hit US$2.1 million compared with US$817,000 a year earlier. The growth remains closely on target with projections made in previous financials of annual sales hitting US$10 million ($1.1 billion) for its 2015 financial year.

Despite the increased distribution and sales the accumulated deficit of the company totalled US$15.6 million.

Much of the deficit came in its last fiscal year with net losses of US$6.7 million or two-thirds higher year on year.

Rohan Marley, son of reggae legend Bob Marley, chairs the company based in Denver, Colorado, USA.

The company packages commodity-roasted coffees and also Jamaica Blue Mountain beans.

One of the company’s concerns is the shortage in Jamaican Blue Mountain (JBM) beans and products based on damage caused by Hurricane Sandy and coffee leaf rust disease.

During the three months ended April 30, 2014 and 2013, the company made JBM purchases of US$64,925 and US$84,880, respectively via purchases to third-party roasters for fulfillment of sales orders, stated the financials.