GROUNDS BREAKING NEWHALL COFFEE PICKED FOR SUBWAY BREAKFAST LAUNCH.

Byline: JERRY BERRIOS

Staff Writer

SANTA CLARITA - A local coffee company is taking its java to the big time.

A specialty brew made by Newhall Coffee Roasting Co. will be served beginning this month at 570 Subway restaurants across Southern California as the sandwich shop expands into the breakfast market.

"We feel like we are their secret weapon," said Mitch McMullen, 41, who owns Newhall Coffee with his brother, Kyle, 39.

When the McMullens got a call from a Subway representative about six months ago, they thought perhaps their micro-roasted coffee would be in one or two restaurants.

But when three suit-wearing Subway reps showed up at their Valencia warehouse and started talking about how they'd have to expand their 20-employee business, the brothers realized something big was happening.

"I wanted to stay local," said Scot Hobert, director of OhCal Foods LLC, which oversees roughly half of the Subway restaurants in the five-county region. "We were looking for someone that everyone can identify with."

Hobert knew about Newhall Coffee -- he buys it at Costco, among stores where it is sold, and brews it at home.

"I had it in my cupboard," Hobert said. "That is how I got the contact information."

The Newhall name also held a special place for Hobert who, like the McMullens, was born and raised in the town, now part of the city of Santa Clarita.

Newhall Coffee created a special brew for Subway with beans from three Brazilian estates. It submitted a bid and was up against a half-dozen rivals.

In the end, more than 500 Subway restaurants picked Newhall Coffee as the winner of a taste test.

The brothers say their product fits perfectly with Subway's "Eat Fresh" slogan, since their coffee is roasted by hand in small batches and is out the door 24 hours later.

"People who walk in to Subway are going to be surprised at how good the coffee is," Kyle McMullen said.

Subway's breakfast launch and advertising blitz officially starts Oct. 22, but most area shops started serving breakfast Monday.

When the restaurants open at 7 a.m., they'll offer omelet sandwiches and a biscuit stuffer, plus anything from the regular menu.

And when customers buy coffee, they will get a cup imprinted with both the Subway and Newhall Coffee logos.

"To my knowledge, Subway has never branded a cup with anyone else's logo," Hobert said. "It's an opportunity and a marriage for both parties. It is very big for them to get this."

Although Newhall Coffee can be purchased at Gelson's, Ralphs, Albertsons, Costco, Sam's Club and Stater Bros., it will be the featured product at Subway.

A contract such as Newhall's with Subway is huge for a small business, particularly because of the guaranteed business, said Eduardo Martinez, an economist with the Los Angeles County Economic Development Corp.

"There's a certainty of volume in landing a major contract that takes some pressure off," Martinez said. "You're not scrounging around, contract by contract."

The Subway contract has wider implications for Newhall Coffee because it will put the brand out to consumers, he said.

"This is a major vehicle for them to advertise their own brand," Martinez said. "It becomes Newhall versus the cans, a specialty coffee versus the Folgers and Maxwell Houses."

Half of Newhall Coffee's business comes from providing coffee to offices, with big-name clients including Nickelodeon, MTV Studios, DreamWorks SKG and Amblin Entertainment.

About four years ago, Newhall Coffee became the official coffee of Mammoth Mountain Ski Resort. Santa Clarita picked it as the city's official coffee.

The brothers want to expand the product beyond Southern California and finally get an advertising budget.

"We like being the no-name contender up against the big dogs," Mitch McMullen said. "We are looking forward to the coffee wars."

Staff Writer Patricia Farrell Aidem contributed to this story.

jerry.berrios(at)dailynews.com

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CAPTION(S):

4 photos

Photo:

(1 -- color) Brothers Mitch, left, and Kyle McMullen of the Newhall Coffee Roasting Co. have sacks of coffee beans stacked at their plant as they ramp up to provide coffee for local Subway restaurants.

(2 -- color) no caption (coffee)

(3) Brothers Kyle, left, and Mitch McMullen of the Newhall Coffee Roasting Co. take pride in their specialty brew.

(4) Coffee dispensers bearing the Newhall Coffee Roasting Company logo have been produced for local Subway restaurants. More than 500 restaurants picked the brew.

Evan Yee/Staff Photographer