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CHOCK FULL O'NUTS COMPLETES SALE OF HILLSIDE COFFEE; EXPECTS TO BOOK AFTER-TAX PROFIT OF APPROXIMATELY $9 MILLION

 NEW YORK, Nov. 22 /PRNewswire/ -- Chock full o'Nuts (NYSE: CHF) announced today that it has completed the sale of its Hillside Coffee of California subsidiary for $38.5 million in cash, and said it expects to record a net after-tax profit of approximately $9 million, or 87 cents a share, in its second quarter of fiscal 1994.
 The company also said that, in a related transaction, it has purchased 200,000 of its common shares, at current market price, from the chief executive of Hillside.
 Hillside, whose business is roasting, packing and distributing more than 100 varieties of premium-priced coffees to supermarkets, was sold to Brothers Gourmet Coffees, Inc.
 "The sale of Hillside is an especially good move for us," said Marvin I. Haas, chief executive officer. "Not only did we realize an excellent profit on our investment, but the cash gives us an extra measure of flexibility as we expand into retail coffee bars and shops, which we believe to be the fastest growing area of the specialty coffee market."
 Chock previously announced that it will develop a chain of retail coffee bars and shops selling premium and European-style coffee for on- premise consumption. The first store will be opened in New York City in the first quarter of calendar 1994, Haas said, adding that plans are "right on schedule."
 Chock roasts, packs and markets regular, instant and decaffeinated coffees under the Chock full o'Nuts label. Its best-known coffee product is its premium vacuum-packed, all-method grind coffee. The company is also one of the largest marketers of food service and private label coffees, teas and related products.
 -0- 11/22/93
 /CONTACT: Marvin I. Haas, chief executive officer of Chock full o'Nuts, 212-532-0300/
 (CHF)


CO: Chock full o'Nuts; Hillside Coffee of California; Brothers Gourmet
 Coffees, Inc. ST: New York, California IN: FOD SU: TNM


CK -- NY086 -- 6957 11/22/93 16:29 EST
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Publication:PR Newswire
Date:Nov 22, 1993
Words:314
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