Javalution Coffee Co. announced that the alliance agreement with Richmont Holdings, a privately-held investment and holding company, has been amended whereby the financial remuneration that was to be provided to Richmont Holdings has been converted to an equity position in Javalution.
On July, 15, 2010, Richmont and Javalution entered into an alliance agreement, under which they began working together to develop a sales and marketing strategy for the coming years. "We have been very pleased at the progress made so far and we're ready for the next step," said John Rochon, chairman of Richmont in a prepared statement. "This sends a loud and clear message that we believe Javalution has a very bright future," added Rochon.
The amended alliance agreement also calls for the formation of an investment committee, chaired by Rochon, to review and analyze acquisition and investment opportunities. Dave Briskie, CEO of Javalution, who is also on the investment committee, stated, "Having John Rochon, with his successful track record and influential relationships chairing our investment committee provides Javalution with a resource that is on par with many Fortune 1000 companies." Briskie continued, "We appreciate the confidence John Rochon and his Richmont Holdings Team has shown in Javalution by taking an equity position in our company. The new financial arrangement further enhances our bottom line and drive to profitability."
Rochon said the action underscores Richmont's confidence in the long term growth of Javalution and its prospects for becoming an increasingly important player in the coffee category.
"This is a category of massive proportions. Coffee is the world's second most popular beverage, after water. This is a unique opportunity for us to participate in an almost limitless growth strategy," said Rochon.
"We are delighted that our relationship with Richmont has now moved to a new level," said Scott Pumper, founder and president of Javalution. "Combining our expertise in the coffee industry with the strategic business and financial experience of John Rochon and his team gives us a great launching pad to broaden Javalution's horizon. This is an important step in our growth."