updated 3/25/2011 9:16:49 AM ET 2011-03-25T13:16:49

STATEN ISLAND, N.Y., March 25, 2011 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. (Nasdaq:JVA) (the "Company") today announced that its license agreement with Entenmann's will expire on March 31, 2011, pursuant to the terms of the agreement.

"After three years of difficulty in gaining distribution on the Entenmann's line of coffee, the licensing agreement will expire at the end of this month under the terms of the agreement. While we are disappointed in our failure to successfully execute our plan for this brand, our ability to execute was adversely affected by supermarket shelves being dominated by Super Premium brands like Starbucks, Dunkin Donuts and Peets, each of which was released into the retail market prior to us being able to get into the market with our brand. Although we will have a small one time write-down on packaging and other intellectual property belonging to Entenmann's, we believe our operating results will improve without the expenses incurred by us under this license agreement," said Andrew Gordon, President and CEO of the Company.

"Annual revenues under the license agreement have steadily declined and now stand at less than $500,000 per year which means we will not see any significant hit to our top line. As such, we have not achieved our minimum revenue under the contract, but were still required to pay a minimum royalty of $100,000 per year under the agreement. Between the minimum royalty payments and expenses incurred in connection with promotional activity required at our accounts combined with the higher prices of Premium Arabica green coffee, we were unable to maintain profitability on these products. We will now utilize the time and effort expended under this agreement to focus on our own proprietary brands like Café Caribe, which already enjoys a widespread distribution and loyal following from their consumer demographic. We will convert all of our supermarket slots from the Entenmann's items to our own proprietary brands, which we expect will give us increased distribution and better margins than we were receiving under current conditions," added Mr. Gordon.

About Coffee Holding

Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.

Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

CONTACT: Andrew Gordon, President & CEO
         Telephone: (718) 832-0800

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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