2008 Revenue Up 55% From Prior Year
2008 Dispensed Products Revenue Up 95%
Forecasts 16,000 to 18,000 Beverage Dispensing Locations by Year End
SAN DIEGO, Feb. 24, 2009 (GLOBE NEWSWIRE) -- Javo(r) Beverage Company, Inc. (OTCBB:JAVO), a leading provider of premium dispensable coffee and tea beverages to the food service industry, today released a review of fiscal year 2008 and presented its outlook for the 2009. The Company ended 2008 with revenue increasing 55% to approximately $19.5 million and a customer base of 10,084 foodservice dispensing locations. The Company enters 2009 with an approximate annual run-rate of $35 million based on current customer dispensing locations and its existing non-dispensed products revenue. Management anticipates continued strong demand for new installations of its high quality, cost-saving beverage systems, especially in the healthcare and convenience store sectors of the foodservice market. The Company expects to report its full results for the year ending December 31, 2008 on or before March 16, 2009. Highlights for 2008 and its outlook for 2009 follow:
Highlights from 2008:
* Total revenue was approximately $19.5 million, an increase of 55%
over 2007.
* Revenue from dispensed products grew dramatically in 2008 to
$15.7 million, up 95% vs. the prior year.
* The Company ended the year with 10,084 foodservice dispensing
locations, an increase of 5,779 or 134%, from the close of 2007.
Each dispenser is expected to generate from $2,500 to $6,000 in
annual revenue.
* Gross margin expanded by more than 1,000 basis points to
approximately 42% as the Company improved its operations with the
integration of several beverage manufacturing processes, including
roasting, thermal processing and packaging.
* Javo built on its relationship with 7-Eleven, the world-wide
convenience retailing leader, by growing the number of locations
and geographic markets serving iced coffees and lattes. Javo
shipments of iced coffee to locations where the program has been
in place for more than one year were up strongly in 2008.
* Javo executed a chain-wide roll-out of its iced coffee program to
Speedway SuperAmerica, a leading Mid-west retailer that operates
1,600 convenience locations.
* The Company completed development of and began the initial stages
of a specialty iced latte expansion with BP Products North America,
operators of more than 1,200 ampm(r) and BP(r) convenience
stores. Javo also added to its number of dispensing locations with
other national and regional convenience store chains such as:
Exxon-Mobil (On the Run(r) stores), Sunoco, Conoco and others.
* Javo added a record number of new locations serving Javo dispensed
coffee products under its Preferred Supplier program with contract
feeder Compass Group. Through company-owned members such as
Morrison Management, Eurest, Bon Appetit, Chartwells College and
University Dining, Restaurant Associates and Creative Host
Services, Compass Group provides food, vending and related services
at thousands of locations.
* The Company completed its first year as a Prime Vendor to the
U.S.