THE US-based Marley Coffee, partially owned by Rohan Marley, the entrepreneurial son of the late reggae legend Bob Marley, has settled a lawsuit with its former chief executive officer (CEO) and former second largest shareholder, Shane Whittle.

The company, which sells Jamaica Blue Mountain and other coffees, also announced plans to grow revenues to US$17 million (J$1.8 b) in the 2016 financial year amid hitting previous growth targets.

The company settled the suit in March for some US$80,000 (J$8.8 m), according to just released financials.

“Pursuant to the terms of the settlement, the company agreed to pay Mr. Whittle $80,000 which has been accrued as of January 31, 2015, (to be paid in equal payments of $10,000 per month beginning on April 1, 2015),” stated Marley Coffee in its financials. “The company agreed to withdraw from a joinder in connection with the Federal Action pending between the parties (and certain other parties) as described below, the parties provided each other mutual releases and the parties agreed to mutually dismiss, with prejudice, their claims.”

The case was filed in Denver, USA in July 2014 when Whittle, a “former significant shareholder and officer and director of the company” asserted a breach of contract in regards to allegations that he entered into a consulting agreement with the company for which the company failed to make payments.

“The complainant alleged that Whittle entered into a consulting agreement with the company for which the company failed to make payments and that Rohan Marley, as both a director of the company and of Marley Coffee Canada, Inc, additionally agreed that, as part of Whittle’s consulting compensation, the company would assume a debt owed by Marley Coffee Canada to Whittle,” stated the financials.

Rohan Marley as chairman and director holds or is connected to holding the highest shareholding at 13 per cent followed by Mother Parkers Tea & Coffee Inc at 9.99 per cent; president and chief operating officer, Anh Tran holds 4.0 per cent; and chief executive officer, Brent Toevs at 2.3 per cent.

The shareholding was very different a few years earlier with Whittle holding a 29 per cent stake in the company and Rohan Marley at 33 per cent, according to the 2013 annual report. In 2010 Whittle resigned as CEO after serving since 2007, financials indicate.

The company described Rohan as being heavily involved in all of the family businesses including 56 Hope Road Music, Bob Marley Music, Zion Rootswear as well as various land and resort holdings across the globe. Rohan also founded Tuff Gong Clothing in 2004.

“Our revenue expectations for fiscal 2016 are US$17 million, of which we believe most of the growth will be in the back half of the year,” stated the company in its financials. “This projection is based on the current organic growth we’ve seen in our current distribution and doesn’t take into consideration any increases in revenue we may get from the launch of our Recyclable RealCups.”

Marley Coffee also expects gross profit margins to stay between 25-30 per cent. But the company also expects to continue making losses going forward.

The company recorded a US$10.2 million net loss on US$9.5 million in annual gross revenue for its year ending January 2015. The net loss worsened year on year from the US$6.7 million loss made from US$6 million in gross revenues in 2014.

The majority of the company’s sales are outside of the distribution of Jamaican Blue Mountain (JBM) beans and products.

“Nonetheless, one of our main concerns for fiscal 2016 is a shortage in JBM. Hurricane Sandy and coffee leaf rust impacted the production output of JBM for 2014 and 2015. Jamaica and the industry expect a slow recovery in output. This tightening of supplies caused JBM prices to increase by about 40 per cent in 2014/2015. We are committed to ensuring our supply chain and providing our customers JBM. We are diligently working to secure more JBM as the market we created for it continues to expand. There still is a high demand for JBM in North America, but limited supply and rising costs may hurt sales,” stated the company, adding that it is currently working to address the supply issues.