Staten Island, New York-based full-service coffee roasting company Coffee Holding Company (CHC) is planning to enter the cannabidiol (CBD) category through a deal with Columbus, Ohio-based beverage company The Jordre Well.
According to CHC, the companies have entered into a binding agreement through which CHC will own a 49% stake in The Jordre Well, which was created by the founders of popular CBD skin care brand Cannuka.
The companies have not yet outlined the financial terms of the deal.
Publicly traded Coffee Holding Company — which owns a range of roasted coffee brands in specialty and traditional segments, as well as green coffee trader Organic Products Trading Company and the Sonofresco roaster brand — said that The Jordre Well will assist in developing and commercializing CBD products for existing product lines.
In addition, The Jordre Well will help launch new non-coffee CDB beverages and other products, according to CHC.
Coffee Holding Company CEO Andrew Gordon said the company began exploring opportunities in the CBD segment upon the passage of the 2018 Farm Bill, which legalized hemp production for commercial products in the United States.
“After numerous discussions and much consideration, the Company is happy to have finally found the right commercialization and brand development partner to bring CBD infused line extensions and beverage brands to fruition,” said Gordon, part of a second generation of Gordons to lead the nearly 50-year-old coffee company.
The Jordre Well, meanwhile, is planning to roll out its own line of CBD seltzers under its own name, as well as CBD coffee products under the Stephen James Curated Coffee Collection name.