- Strikes deal to supply coffee to 60-ship cruise line
- Potential market of 60,000 crew members and staff
- Enters five-year contract to supply unroasted coffee worth $50 million
The cruise industry is big business, so it’s not surprising that the perceptive marketing practitioners at Youngevity International, Inc. (NASDAQ: YGYI) have spotted the commercial opportunities therein. The company recently announced that it had expanded its footprint in the cruise line industry by adding one more prestigious brand to its hospitality business (http://ibn.fm/NZfTH). Its coffee manufacturing division, CLR Roasters, has bagged a contract with another top cruise operator. The two-year deal means roasting and serving coffee to the entire crew and staff of the cruise line, which has a fleet of 60 ships serviced by over 60,000 people from some 100 countries. It also requires CLR to supply coffee to the passengers of three luxury cruise ships. As global popularity of the caffeinated beverage continues at record highs, Youngevity’s fortunes are poised to rise in line. Our love of coffee ensures that.
Coffee has captured not just the palates of Homo sapiens, but their imaginations as well. In Brazil, where they’ve got an awful lot of it, a profusion of precepts are propagated. One such advises that coffee – café – should be drunk “black as the devil, hot as hell, and as sweet as sin.” If that’s the way you like your coffee, it’s very likely you’ll find that palatable brew from CLR Roasters. CLR, established in 2001, is a wholly owned subsidiary of Youngevity International. The division produces gourmet coffees under its own boutique-registered brands, which include the Café La Rica, Josie’s Java House and Javalution lines.
The CLR unit also manufactures a variety of private labels for major national chains and product for Youngevity’s direct sales operation. It is one of the largest suppliers in North America to the cruise line industry. The subsidiary was also the first entrant into the fortified coffee niche with its Youngevity JavaFit registered brand. It doubled down on coffee by acquiring a plantation and processing facility in Nicaragua. This vertical integration will allow a greater degree of control to be exercised over the supply chain, resulting in improved quality and lower costs as the coffee moves from land to lips.
CLR Roasters recently entered into a five-year contract for the sale and processing of over 41 million pounds of green (unroasted) coffee on an annual basis (http://ibn.fm/1KJsi) Based on current coffee prices and coffee futures, this contract should generate revenues in excess of $50 million per year for each year of the five-year contract.
The coffee plantation in Matagalpa, Nicaragua, extending over 1,000 acres, was acquired by Youngevity International in 2014. The plantation had been essentially abandoned but still housed 180 dedicated workers and their families. Its rehabilitation began with a project – the Kindness Project – that asked for clothing to be donated to the workers. The enthusiastic response from distributors and customers resulted in enough clothing to supply not only the Youngevity plantation, but also many plantations nearby. This led to the establishment of the ‘Youngevity Be the Change Foundation’, after the neighboring plantations began calling the Youngevity estate ‘The Giving Plantation’ – an initiative that aligns with Youngevity’s desire to promote healthy and empowered lifestyles.
Youngevity is a leading omni-direct lifestyle company that markets an extensive range of products and services covering the eight top-selling retail categories. Brands offered include those in health and nutrition, home and family, food and beverage (including coffee), spa and beauty, fashion, essential oils, photo and innovative services. The company was formed from the 2011 merger of Youngevity Essential Life Sciences and Javalution Coffee Company (now part of the company’s food and beverage division). The company also plans to enter the cannabidiol (CBD) market with a proprietary line of hemp-derived CBD oil products very soon (http://ibn.fm/RMOkn).
For more information, visit the company’s website at www.YGYI.com
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