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Brophtron

06/19/14 8:10 PM

#6265 RE: Smushie #6264

It's actually all very simple.

in your opinion please tell us why in the world MP would want to put any of its funds into this 'failing company of Marley Coffee?' Please tell us your thoughts on their huge investment. Thank you



How much do you think MP spent developing RealCups? Possibly a couple million? How much do you think they stand to profit if other coffee companies use their system rather than Keurig or Keurig2? I'd say they have quite a bit of money to make.

Now what is the biggest brand on RealCups? That would be JAMN. So first of all, MP makes the lion's share on each RealCup sold; we know that JAMN only makes a few cents per cup sold. By keeping JAMN alive, they make money on each sale, even if JAMN doesn't and they get a name brand in the publicity which hopefully will get them more clients for the RealCups.

Also, according to the public records available at the time of the deal, JAMN's sales kept on increasing (though the Q3 numbers were a smaller percentage increase compared to other quarters). Granted, since they're a supplier, MP might have had more information available than the average investor, but they may have thought that JAMN's financial picture was better than it has turned out to be.