(JVDTQ.PK) java detour® an upscale boutique brand for a global audience, changing how the world enjoys coffee! We are much more than coffee, we are an experience.
proven concept
java detour® stores sell the world's finest gourmet coffees, fruit smoothies and selected baked goods from retail facilities that specialize in speed and convenience.
company objective
the company's objective is to establish the java detour® concept and brand as one of the most recognized and successful gourmet beverage retailers in the world.
company mission
to create customers for life by providing superior quality, convenience, and customer service to every person, every day.
Everything what's written above is true, the only problem is that as of September 9, 2010 Java Detour Inc. is bankrupt. They own 11 stores in California and other 9 are franchised outlets in Minnesota, Nevada and Wisconsin.
So how come they went bust and what it means for other retail coffee shops in U.S. both very big and small? It means that the way how Americans will drink coffee is really changing forever.
I never visited Java Detour boutique coffee shop so I can't judge about their espresso taste, but I have visited once Starbucks (I know to most it sounds weird, this "once") at Frankfurt Airport and must tell you, the cappuccino (or how else they call their junk) there tasted like sweetened piss (I never tried piss), it was made from the worst Robusta (maybe few % Arabica was there) beans available on the market, from the worst milk powder and the worst genetically modified sugar there is. If this is what America loves about Starbucks, then to me it means America loves sweetened piss with milk and calls it c o f f e e.
I know few things about the taste of coffee because I never buy junk, I either go to Italian family owned cafe in the city or drink my Illy espresso in the morning that comes out from the best in the world Made in Germany coffee machine ECM.
Also sometimes I may buy Bio cold coffee on the go like Lupo Biondo so you can trust me, I know what is a real coffee and what is not.
About a month ago Starbucks cold coffee appeared on the shelves in German stores and I bought once (I knew my chance to get a good taste coffee was 1:100) and now I promise it was a last time I touched something Starbucks.
They produce it in Denmark (Arla Foods' subsidiary Cocio Chokolademaelk A/S) for a West European market but I think Europeans will vote "NO" to (SBUX) because we know the difference between good and very bad coffee.
Now back to (JVDTQ.PK) Chapter 11 bankruptcy, it had to happen. Their quarterly revenue growth is down 25% and with sales at $7.3M they lost $4M. But the biggest hit was a rising KC (coffee futures) price, only in the last 2 years the price of Arabica beans went up by 100% and it's in free rise, there is no resistance at the moment and everything points to $2.30+ per libra and higher.
Robusta coffee beans price is almost the same as in 2008 but the problem is that without Arabica there is no coffee to make, so you can expect worsening of your cappuccino taste even further and in the end what will be left to consumer is a "coffee" label on the cup while inside will be ....most retail coffee shops will use more and more junk to make your coffee taste like something, because 100% rise in Arabica prices places them on a death watch, their cost of revenues is breaking all the profitability benchmarks and they will start to bleed money in the next quarter and year, there is no way to make money at the current Arabica price.
They will close shops, fire workers, cut prices it will be a hurricane and nobody will win in the end, because for a normal human coffee is not about packaging - it's about taste and taste will get much, much worse. That's why buy a good coffee machine and drink your coffee at home.
Java Detour Inc. lists about $6.4M in assets and about $6M in liabilities but they have trouble paying their $1.5M in debt, also their assets declined from $11M in 2006 together with a rising coffee price I think it's all over for them. Go make some pics inside their shops (and tell me how is the coffee) because in the future it will be a history and you will say you was there drinking coffee.
Java Detour, Inc. (Java Detour), formerly known as Media USA.com, Inc., operates through its wholly owned subsidiary, JDCO, Inc (JDCO). The Company sells gourmet coffees, whole leaf teas, cold blended beverages, fresh fruit smoothies and select baked goods from Company-owned and franchised retail stores. As of December 31, 2008, its portfolio of stores included 11 Company-owned and nine franchised retail outlets. As of December 31, 2008, the Company-owned and operated 9 corporate stores. On September 9, 2010, Java Detour and its wholly owned subsidiary, JDCO Inc., filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court in San Francisco, California.
