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Brophtron

11/21/14 9:32 AM

#6772 RE: TAJS20 #6768

There are 2 main problems with the Canadian potential

1) The Canadian market is about 1/10th the size of the US market
2) Marley Coffee is already in Canada; they've been there for some time according to the press releases

It's clear that the growth in the US is over, though - they're now in 10 times the stores they were in a year ago, but they're not doing 10 times the sales; that means that they've reached "market saturation". By adding stores, they're not reaching new customers; all they've done is gotten product on the shelves of the new stores; people haven't bought enough at these stores to warrant a repurchase.

JAMN does promotions, but they think way too locally; they want to be the kings of coffee in Denver, but the sports franchise support isn't a good way to go. The kiosk at the baseball stadium is going to sit idle until April. The football field location is only used 8 days out of the year (16 games in a year, but half of those are away games).

JAMN is running out of cash and the sales are not sustaining the business.