Jammin Java Corp (JAMN)

[Brophtron]

Not really, though.

the beans/roast could just as easily be excess production from jamn. translating to no extra cost and no immediate top line growth, but develops a new distribution line for the company.

It's still a cost - the beans would be bought, shipped, roasted, packaged, etc. Regardless of it being a sunk cost, it's a capital outlay that they'd have to make. Remember a while back when they had over $1 million in inventory? That didn't lead to extra sales; I think all that inventory was wasted as it came off the balance sheet without an increase in sales.

you're now the ceo of jamn. how would you grow the company?

I honestly don't think they can grow. If you take away Walmart, they're already in all the major grocery chains in the US (I know there is a world market, but it's expensive to ship around the world and JAMN can't afford it). In 2013, they put all their effort into getting onto store shelves. That was great; they had distribution, but there was no demand for the product.

They failed to do in retail locations what they're doing in the office supply business - starting locally and building (though even there they seem to be starting locally and not growing at all). They should have targeted key demographic areas, like bigger cities, done advertising in those areas and grown demand before they increased distribution. They thought that just putting the coffee on store shelves would be enough to sell the coffee, but it's not.

But now it's too late. They ship to too many locations; they can't have an ad campaign that covers all the locations where they sell.

They also should have chosen some partners better. AVTC had promised 1,000 automated coffee machines for 2013. The last I heard, they made 70 machines.