Yongevity enters K-Cup market

CLR Roasters, a subsidiary of Youngevity International, is capitalising on the single-serve market with the announcement that it will purchase K-Cup manufacturing equipment. CLR Roasters has entered into a contract with Opem to purchase equipment capable of producing 200 K-Cups per minute. “Our company has strong demand from its private label coffee customer base and from its Youngevity direct selling division to deliver various coffees in the K-Cup brewing format,” said Dave Briskie, Youngevity’s Chief Financial Officer and President of Commercial Development, in a statement. “We believe that this new K-Cup production can produce as much as US$15 million of revenue annually.” According to Briskie, current growth rates of single-cup brewing indicate CLR Roasters will have 50 per cent of the K-Cup production capacity pre-booked prior to operation in 2015. The purchase of the equipment follows an agreement with investors to purchase over 11 million shares of its common stock. “This capital raise is another milestone for our company and we believe the additional capital investments will allow the continued accelerated growth of our CLR Roasters coffee operation,” said Briskie, in the statement. As a result of this financing, CLR Roasters also plans to acquire a second coffee plantation in Matagalpa, Nicaragua. Yongevity seems to have seen impressive growth in recent times. The company announced in July the procurement of several contracts totalling $3 million for its recently launched green coffee distribution division.