Full Service Coffee Roaster & Packaging Company, Texas Manufacturer Since 2003

$11.3M

Revenue

$914K

SDE

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Full Editorial Writeup

This is a vertically integrated coffee roasting and packaging business based in Texas, in operation since 2003 and generating $11.3M in revenue against roughly $914K of EBITDA. The company runs a 30,000 square foot production and distribution facility with 25 full-time employees, focusing on premium small-batch roasting and a growing portfolio of proprietary branded products. Over its two-plus decades it has evolved from a regional brand into a multi-channel operation with national accounts.

The business combines two distinct economic engines: owned proprietary coffee brands that carry brand equity and margin, and a manufacturing backbone capable of toll roasting, private label, and contract production. Management has leaned into the fast-growing functional and wellness beverage category, positioning the branded side for premium pricing while keeping the roasting infrastructure available to service third-party volume.

At roughly 8% EBITDA margin on $11.3M of revenue, this is a classic food-manufacturing profile: real throughput, meaningful hard assets, and thin margins that reward operational discipline. The upside case rests on filling the plant with higher-margin contract and private-label work, expanding the owned brands, and converting one-time wholesale orders into repeat programs. The downside risk is the commodity and brand exposure of specialty coffee, which is discretionary at retail.

Why we like it

Earnings quality is anchored in a real operating asset: a 30,000 square foot facility, 25 employees, and $914K of EBITDA on $11.3M of revenue. These are audited-style manufacturing economics with physical throughput, not a flimsy drop-ship arbitrage play. The vertical integration means margin is captured in-house rather than leaking to co-packers.
The dual model of owned proprietary brands plus toll and contract roasting capacity creates two distinct demand sources. Branded products carry pricing power and customer loyalty, while the roasting infrastructure can be monetized through private-label and contract work. That optionality lets a buyer dial throughput up without rebuilding the plant.
Specialty and functional coffee remains a structurally growing category, and the company has already positioned itself in the wellness-focused segment. National accounts and long-standing supplier relationships signal the business has graduated past the fragile startup phase. That maturity de-risks the transition for an incoming owner.
The plant is clearly underutilized relative to its capacity, which is the operator's dream: fixed costs are largely in place and incremental contract volume drops to the bottom line. An operator who can sell idle roasting capacity to third parties can expand margin without proportional capital outlay.

How to improve it

Attack plant utilization directly by selling toll roasting and contract manufacturing to regional brands that lack their own facilities. Each incremental pound run through existing equipment carries high contribution margin, which is the fastest path to lifting the 8% EBITDA margin. Build a dedicated B2B sales effort around this within the first quarter.
Launch or expand a subscription and loyalty program for the owned brands to convert episodic wholesale and DTC purchases into recurring revenue. Even a modest recurring base materially improves predictability and would justify a higher exit multiple. Coffee is a consumable with natural reorder cadence, which makes this winnable.
Audit green coffee procurement and hedging practices immediately, since commodity bean prices are the single largest input cost and swing margin violently. Lock in forward contracts or pass-through pricing clauses with national accounts to protect the thin margin. Mismanaged bean exposure can erase the entire $914K in a bad year.
Rationalize the proprietary brand portfolio by SKU-level profitability and kill or reprice the losers. A growing portfolio often hides unprofitable long-tail SKUs that consume working capital and production complexity. Concentrating effort on the top performers lifts both margin and factory efficiency.
Pursue private-label programs with grocery and club retailers to fill capacity under someone else's marketing budget. Private label trades brand equity for volume and reliability, both of which suit this plant. It also diversifies away from the discretionary risk of the owned premium brands.
Invest in the national account relationships with dedicated account management to deepen wallet share and lengthen contract terms. Converting purchase orders into multi-year supply agreements stabilizes revenue and strengthens the diligence story at resale. These accounts are the most valuable and most underleveraged asset on the books.

Diligence notes

The listing discloses EBITDA of $914K but no asking price or SDE, so get the full CIM and quality-of-earnings review before anchoring on value. At $11.3M revenue, an 8% margin leaves little room for add-back games or owner compensation normalization errors. Confirm the EBITDA is clean and sustainable, not inflated by one-time pricing windfalls.
Scrutinize customer concentration within the national accounts, since the jump from regional brand to national platform often rides on a handful of large buyers. Losing one anchor account could swing the margin dramatically given the thin spread. Request a revenue-by-customer breakdown covering at least three years.
Examine green coffee cost history and inventory accounting, because recent commodity bean prices have been volatile and can distort trailing margins. Understand whether the reported EBITDA benefited from favorable bean timing or passed-through price increases that may not repeat. This is the make-or-break input for the thesis.
Verify the condition, age, and ownership status of the roasting and packaging equipment, which is the core hard asset justifying the manufacturing comp. Deferred maintenance or leased equipment would change both the valuation and the capex forecast. Confirm the equipment is owned free and clear as the listing implies.
Clarify how much of the $11.3M is owned-brand versus co-pack or toll work, as the two carry very different margin and durability profiles. The revenue mix determines whether this is a brand business or a contract manufacturer wearing a brand hat. That distinction drives the entire valuation and improvement plan.

Source

Originally listed on BizBuySell. View original listing →