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In October, Coffee Holding Co. (NASDAQ: JVA) became the owner of 49% of The Jordre Well, a newly-formed CBD beverage company managed by the founders of Cannuka.
The 50 year-old coffee roaster and distributor chose the Ohio-based Jordre Well as its new strategic partner.
“We looked at it as a great engine to really increase our profitability as a company,” Coffee Holding CEO Andrew Gordon told Benzinga.
A Win-Win Scenario
“There's really nobody else, to my knowledge, in North America or the world, that provides a commercial scale coast-to-coast coffee distribution platform that is ready to infuse CBD,” Jorde Well CEO Ian James said.
Coffee Holding approached his company with a mutually beneficial proposal, he added.
The Jordre Well was launched in 2020 by the founders of Cannuka, a CBD skin care brand that’s present in over 2,500 retail locations across the country. The Jordre Well is the first offspring of The Ideation Lab, a CBD umbrella company focused on building a portfolio of CBD consumer brands.
James said it made perfect sense to give up 49% of the company to Coffee Holding in order to leverage the latter’s platform for distribution and manufacturing. The Ideation Lab still holds the remaining 51%, he told us. The deal worked as an all-stock transaction between the parties.
Coffee Holding Co. Enters the CBD Space
Coffee Holding’s Gordon said his company wanted to seize the opportunities opening up along the CBD beverage market. He added that CBD coffee is a value added product, and one that -at least initially- won't have a lot of competition.
Under the deal, Coffee Holding will provide its large, country-wide manufacturing and distribution network for Jordre Well branded products, which include functional coffees, seltzers, waters and other CBD beverages.
The Ideation Lab will leverage its multiple partners to source CBD that will be included into Coffee Holding’s flagship products like Cafe Caribe and Harmony Bay. These are expected to go into market in 2021.
“We're going to be launching CBD with very well-known brands in the market, which have good consumer loyalty and recognition. So, value added attached to a well recognized brand, should be a win-win situation for us as a company,” said Coffee Holding’s Gordon.
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