a leading provider of premium dispensable coffee and tea-based beverages to the food service industry, today announced that Premier, Inc., the largest healthcare group purchasing organization in the US, will award Javo a multi-year contract for dispensed coffees effective January 1, 2008.
According to the terms of the agreement, Premier will offer Javo specialty hot and iced coffees to its network of 1,700 participating not-for-profit hospitals and more than 49,000 other health systems facilities nationwide. Premier members will purchase the coffee house-style beverage concentrates designed to dispense from Javo's concentrated drink dispensers from more than 50 US Foodservice distribution centers across the country. Javo records hot coffee or iced coffee revenue of between $3,000 and $6,000 per year for each Javo dispensing machine installed at a customer's foodservice facility.
Premier is the nation's most extensive Group Purchasing Organization (GPO) and the largest by volume ($27B+). Premier contracts cover everything a hospital or other medical facilityrequires, from surgical tools and video equipment to frozen entrees and housekeeping products. Very few suppliers in a given category are approved at each contract cycle - usually three years in length - to sell to member healthcare sites.
Cody C. Ashwell, chairman and CEO of Javo, said, "This is a massive win and is, by far, the largest new business award in our company's history. Our selection by Premier is a testament to the quality of our beverage products and to the effectiveness of our dispensed beverage operating system. This contract will double the size of our distribution network and in doing so will improve our access to the more than 2.5 million restaurants and institutional foodservice facilities in the United States. Given the extremely large size of Premier's facilities, each one converted to Javo will include multiple dispensers. When combined with other business sold last year, there is unprecedented momentum for dispenser installations as we enter 2008."
Gary Lillian, Javo's president, said, "Premier is a highly member-focused organization. Javo secured this award over larger and more established beverage companies because Premier's members recognized the quality and uniqueness of our products. Specifically, our program gives members the opportunity to offer specialty beverages like those found in retail coffee shops without the need to install and learn a new operating system. Our sales team is thrilled about the opportunity to demonstrate our complete line of concentrated, on-demand hot coffees and specialty iced coffees at thousands of Premier member sites across the country."
Javo has over 4,300 dispensers installed nationwide. Javo's award status with Premier enables the company to offer its program of dispensed specialty coffees at more than 50,000 facilities nationwide. In addition to Premier, Javo's growing customer list includes: 7-Eleven, Compass Group, MedAssets Supply Chain System, US Department of Veterans Affairs, Exxon-Mobil, Sunoco, Haagen-Dazs, Mrs. Fields, and hundreds of healthcare facilities, universities and convenience stores across the country. Products manufactured by Javo are distributed to its coffee and tea customers by leading distributors, such as: Sysco Foods, US Foodservice, Gordon Foodservice, Shamrock Foods, Performance Food Group and others.
About Premier, Inc.
Serving 1,700 hospitals and more than 49,000 other healthcare sites, Premier is the largest healthcare alliance in the US dedicated to improving patient outcomes while safely reducing the cost of care. Owned by not-for-profit hospitals, Premier operates one of the nation's largest healthcare purchasing networks and the most comprehensive repository of hospital clinical and financial information. Premier Insurance Management Services, Inc., a wholly-owned subsidiary, operates one of the largest policy-holder owned, hospital professional liability risk-retention groups in healthcare.
Premier maintains its headquarters in San Diego, with offices in Charlotte, N.C., Philadelphia, and Washington, DC. The company received the Malcolm Baldridge National Quality Award in 2006. For more information, Based in Vista, California, Javo(R: 41.62, -1.61, -3.72%) Beverage Company (OTC Bulletin Board: JAVO) is an innovator and leader in the manufacture of coffee and tea-based dispensed beverages, drink mixes and flavor systems. The company has successfully commercialized a proprietary brewing technology that yields fresh brewed coffees and teas that are flavorful, concentrated and stable, with broad applications in the food service, food manufacturing and beverage industries.
For food service operators, Javo makes it possible to serve great tasting hot coffees and cold specialty coffee beverages from convenient dispenser-based systems. Javo also assists food and beverage processors seeking authentic and robust coffee and tea flavors through its development and supply of customized ingredients for packaged foods and ready-to-drink beverages. The company supplies a growing list of national and international food service operations, specialty coffee retailers, restaurant chains and food manufacturers. For information about Javo Beverage Company, please visit www.javobeverage.com.
This release contains forward-looking statements made by or on behalf of Javo(R: 41.62, -1.61, -3.72%) Beverage Company, Inc. All statements, which address operating performance that the Company expects will occur in the future, including statements relating to volume growth, share of sales, or statements expressing general optimism about future operating results, are forward-looking statements. These forward-looking statements are based on management's current views and we cannot assure that anticipated results will be achieved.