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| 8-K - CURRENT REPORT - Youngevity International, Inc. | ygyi8k_july2018.htm |
Exhibit 99.1
YGYI’s CLR Roasters Lands 5 Year Contract Worth Estimated
$250 Million
Over 41 Million Pounds to be Shipped Annually
SAN DIEGO, July 31, 2018
/PRNewswire/ -- Youngevity
International, Inc. (YGYI),
a leading omni-direct liftestyle company, announced today that its
wholly owned subsidiary, CLR Roasters, has entered into a 5-year
contract for the sale and processing of over 41 million pounds of
green coffee on an annual basis. Based on current coffee prices and
coffee futures it is estimated that this contract will generate
revenues in excess of $50 million dollars per year for each year of
the 5-year contract. The purchaser of the coffee is a major coffee
importer and exporter with over 7 decades of industry experience
and supply to many of the largest coffee brands in the industry.
The relationship with the distribution partner was established with
CLR Roasters when they began their green coffee distribution and
processing business just four years ago and has been growing
steadily each year. Revenue for this contract covers the period
2019 through 2023 with first shipments to begin in January of
2019.
The contract is predominantly for strictly high grown washed
Nicaraguan conventional coffees, however, the contract provides
that a significant portion may come from various certified coffees
including, Organic, Direct trade, Rain Forest Alliance, UTZ, Bird
Friendly, and Siles Family Plantation Group’s (another YGYI
wholly owned subsidiary) recently obtained Starbucks C.A.F.E.
Practices certification. Pursuant to the contract, coffees will be
shipped to the various USA, Canadian, and European ports and the
contract will be governed by the Green Coffee Association of NY
rules and practices.
"We are very excited to have established a relationship that would
yield such a significant contract for our coffee business and
business at large. Ernesto Aguila, President of CLR Roasters, and
Marisol Siles who leads our wholly owned subsidiary, Siles Family
Plantation Group, along with our partnership with Alain Hernandez
of H&H Export Group are the primary catalysts in bringing this
opportunity to our business.” stated Dave Briskie,
President and CFO of Youngevity. “This type of long-term
contract is what we envisioned when we outlined a plan to build
scalable coffee operations across multiple vertical segments. The
length of the contract will provide us the stability necessary to
continually scale and expand operations in
Nicaragua.”
.
Marisol Siles, President of Siles Family Plantation Group, stated,
“We have worked tirelessly over the last several years to
build a dependable and long term supply relationship with our local
producer partners. It is gratifying to now be positioned to provide
and deliver on a contract of this size over the next 5 years that
we expect will not only provide value to shareholders, but provide
significant employment opportunities for the region of Matagalpa,
Nicaragua.”
Steve Wallach, Chief Executive Officer of Youngevity, the parent
company that owns all coffee subsidiaries stated, "We have invested
millions of dollars in our coffee operations with our sights on
creating value for our business. A contract of this size is the
accomplishment and hard work of many and should provide significant
employment opportunities for many more.”
The company estimates that initially it will be hiring
approximately 1000 workers to begin processing the coffee. The new
hires will begin work starting the end of August and are planned to
scale to full capacity by the end of 2018.
Estimated revenues for the 41 million pounds of green coffee to be
sold and processed under the contract are based on the current
coffee prices and coffee futures as priced on ino.com as of the
close of the market on Friday July, 27, 2018.
About CLR Roaster
Youngevity's coffee manufacturing division, CLR Roasters, was
established in 2001 and is a wholly-owned subsidiary. CLR Roasters
is a full-sized coffee roaster that produces gourmet coffees under
its own boutique brands -- Café La Rica®, Josie's Java
House®, and Javalution®; manufactures a variety of
private labels for major national chains; and for the direct
selling channel under Youngevity International. The company remains
one of the largest suppliers in North America to the cruise line
industry. CLR was the first entrant into the fortified coffee niche
with its Youngevity JavaFit® brand. In May 2014, CLR acquired
a coffee plantation and processing facility in Nicaragua, allowing
the entity to control coffee production and quality -- from field
to cup.
About Youngevity
International, Inc.
Youngevity International, Inc. ( NASDAQ: YGYI ), is a leading
omni-direct lifestyle company -- offering a hybrid of the direct
selling business model, that also offers e-commerce and the power
of social selling. Assembling a virtual Main Street of products and
services under one corporate entity, Youngevity offers proven
products from the six top-selling retail categories:
health/nutrition, home/family, food/beverage (including coffee),
spa/beauty, apparel/jewelry, as well as innovative services. The
Company was formed during the summer 2011 merger of Youngevity
Essential Life Sciences with Javalution® Coffee Company (now
part of the company's food and beverage division). The resulting
company became Youngevity International, Inc. in July 2013. For
investor information, please visit YGYI.com.
For general information on products and services, please visit us
at youngevity.com.
Keep up with our activities by liking us
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Safe Harbor Statement
This release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. In some
cases forward-looking statements can be identified by terminology
such as "may," "should," "potential," "continue," "expects,"
"anticipates," "intends," "plans," "believes," "estimates," and
similar expressions, and includes statements regarding the estimate
that the sale and processing contract will generate revenues in
excess of $50 million dollars per year for each year of the 5 year
contract, first shipments beginning January of 2019, the contract
providing the stability necessary to continue to scale and expand
operations in Nicaragua, the contract providing value to
shareholders and significant employment opportunities for the
region of Matagalpa, Nicaragua., plans to scale to full capacity by
the end of 2018, These forward-looking statements are based on
management's expectations and assumptions as of the date of this
press release and are subject to a number of risks and
uncertainties, many of which are difficult to predict that could
cause actual results to differ materially from current expectations
and assumptions from those set forth or implied by any
forward-looking statements. Important factors that could cause
actual results to differ materially from current expectations
include, among others, our
ability to generate revenues in excess of $50 million dollars per
year for each year of the 5 year contract, our ability to commence
first shipments in January of 2019, our ability to continue to
scale and expand operations in Nicaragua, our ability to provide
value to shareholders and significant employment opportunities
under the contract, our ability to implement our plans to scale to
full capacity by the end of 2018, , our ability to continue our
financial performance and the other factors discussed in our Annual
Report on Form 10-K for the year ended December 31,
2017
and our
subsequent filings with the SEC, including subsequent periodic
reports on Forms 10-Q and 8-K. The information in this release is
provided only as of the date of this release, and we undertake no
obligation to update any forward-looking statements contained in
this release on account of new information, future events, or
otherwise, except as required by law.