Gourmet's Choice Board Approves Asian Expansion
NEW YORK, May 27 /PRNewswire/ -- Gourmet's Choice Coffee Co., Inc. (OTC Bulletin Board: GMCH) announced today that its board of directors has approved a plan to introduce Gourmet's Choice Coffee into Asia via retail sales through a chain of small coffee shops. The plan calls for the opening of twenty-four coffee shops in Hong Kong, Shanghai, Beijing, Tokyo, Seoul, Pusan, Singapore, and Kuala Lumpur.
GMCH will join forces with China Food and Beverage Company (OTC Bulletin Board: CHIF) to undertake this expansion plan. The plan calls for each coffee shop to be approximately 2,000 square feet with seating capacity for 120. The projected total investment for the completion of the twenty-four coffee shops is $15 million. The exact percentages of the joint venture between GMCH and CHIF have yet to be determined.
Although tea has traditionally been the hot drink of choice throughout Asia, coffee consumption has steadily increased at a rate exceeding 10% per year and should overtake tea consumption within the next five years. The strategic alliance with CHIF will provide a reliable and inexpensive mean for GMCH to introduce over 20 blends of gourmet coffee from around the world and provide profit margins exceeding 30%.
James Tilton, President of GMCH stated, "This partnership with China Food and Beverage Co. should prove to be invaluable in our efforts to expand into Asia. CHIF is a Nasdaq qualified company which reported revenues of $15.9 million and a pre-tax earnings of $2.9 million for the year ended December 31, 1998, and already possesses a major production facility in China. Asia is the world's largest consumer market and will soon become the world's primary market for coffee."
Gourmet's Choice Coffee Co., Inc. is a U.S. holding company whose strategy is the acquisition of both domestic and international beverage companies that complement its existing business, distribution and product lines.
For coffee orders only, please visit gourmetschoicecoffee.com . For further information contact Investor Relations at (800) 641-5844 or visit the website gmch.net .
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, the ability of Gourmet's Choice to accomplish its stated plan of business. Although Gourmet's Choice believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Gourmet's Choice or any other person that the objectives and plans of Gourmet's Choice will be achieved.
SOURCE Gourmet's Choice Coffee Co., Inc.
CO: Gourmet's Choice Coffee Co., Inc.; China Food and Beverage Company
ST: New York, China
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