Under the terms of the new agreement, which has a five year term and renews automatically, KonaRed will serve as VDF FC's exclusive supply source for premium U.S.-grown Kona coffee fruit. VDF FC, in turn, will manufacture and market a line of 100% U.S.-grown coffee fruit-based ingredients, including dried fruit (pulp) and whole cherry powders, juice concentrates, and extracts to the food, beverage, cosmetics, nutritional, and dietary supplement industries. For the first time anywhere, sustainable, traceable and high quality coffee fruit grown in the U.S.will be made available on a large scale.
KonaRed CEO Shaun Roberts said, "We have now officially launched our industrial division to supply premium 100% U.S.A. sourced Coffeeberry coffee fruit ingredients in cooperation with VDF FC. We are excited to be such an important part of the premium Coffeeberry brand. VDF FC is one of the largest food, beverage, and dietary supplement ingredient suppliers, and the largest freeze dryer in the world. Our respective companies are at the forefront of the coffee fruit industry, and I fully expect that by joining forces we can push the category forward even further and help it to flourish."
VDF FC Executive Vice President John Hunter was equally upbeat: "I fully expect our collaboration with KonaRed to continue to spur innovation and new product development with coffee fruit as well as bolster our intent to continue our ground-breaking scientific research into this abundant, yet until now untapped, American-grown super fruit."
On the financial side, KonaRed President and COO Kyle Redfield explained, "This partnership provides us the horsepower to capitalize on a huge market segment that we couldn't reach before and opens up an entirely new avenue of revenue for KonaRed to exploit and to drive growth. To put it in perspective the total annual Hawaiian coffee fruit supply in Kona alone is estimated at 2 million pounds dried. At several dollars a pound that can add a nice bump in revenue to both our top and bottom lines."
Looking to the future, Mr. Redfield added, "Each decade seems to have its break-out ingredient. We saw the cranberry develop into a worldwide phenomenon, followed by pomegranate and then coconut. We believe we're approaching the break-out point for coffee fruit, and are excited to be at the forefront at this historic moment.