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Marley Coffee Real Cups Roll Out At Office Depot; Equity Deal Settles $1M In Debt

Posted On: 3/13/2013

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TAGS: Marley Coffee, Real Cups, Office Depot, Global IV Ltd., Brent Toevs, office coffee service, OCS suppliers, vending, vending machine business, single-service coffee

LOS ANGELES -- Marley Coffee's Keurig-compatible Real Cups are making their way onto Office Depot shelves at its stores throughout North America. The lineup will include four varieties of the single-serve coffees in 24 packs: Get Up, Stand Up (light roast); One Love 100% Ethiopia Yirgacheffe (medium); Lively Up 5 Bean Espresso (medium dark); and Talkin' Blues 100% Jamaica Blue Mountain (medium). Marley is also adding a 36-ct. variety pack for Office Depot.

The Los Angeles-based coffee company launched its RealCups in November 2012. The company reported that more than 500,000 units shipped within the first month of the introduction of the single-serve cartridges.

"Not only is the single-serving market very important to us and represents a large growth opportunity, but Office Depot is a very valued business partner," commented Brent Toevs, chief executive of Marley Coffee. He emphasized that Office Depot has a strong presence in three distinct areas on which Marley Coffee is focused: retail/consumer, online and business-to-business.

Office Depot is one of the world's largest office supply stores, with more than 1,100 stores, $11.5 billion in sales, and customers in 60 countries in North America, Europe, Asia and Latin America.

Separately, Marley Coffee said it has settled more than $1 million in debt in exchange for the issuance of shares of its common stock to equity investor Ironridge Global IV Ltd. Ironridge previously purchased certain Marley Coffee debts held by third-party creditors, which make up the amount settled.

Officials said eliminating the debt will provide Marley with more cashflow to invest in hiring additional sales personnel and ramping up its marketing activities.

"This transaction is critically important for us, and comes at a great time for our company," Toevs said. "[It] frees up a lot of cash for us to put right back into that sales push which we hope will allow us to bring in large and small accounts."

For larger accounts, he explained, Marley will use the additional cashflow for listing fees and regional marketing efforts. "For our existing accounts, we plan on putting additional cashflow right back into marketing with a goal of increasing our market share and building long term loyalty with the plan to establish ourselves as the premiere gourmet coffee brand in those markets," Toevs concluded.