A Case Study: Reborn Coffee Inc. (NASDAQ: REBN)

0
524

America may run on Dunkin, but before you know it, Americans may soon be running for a sip of perfectly crafted cold brew coffee with hints of kiwi, orange, and pineapple. That is because Reborn Coffee is bursting onto the coffee scene with delicious robust flavors ready to takeover the cold brew market. With consistent quarterly growth and an aggressive growth strategy, Reborn Coffee wants to show you that their coffee does not just give your energy a boost, but your bank account as well.

Overview:

Reborn Coffee Inc. was founded by Jay Kim on July 31, 2015, and is headquartered in Brea, California and officially listed on the Nasdaq on August 12, 2022. They currently operate through three market channels by selling their coffee products at retail locations and kiosks, pour over packs for the ready to drink market, and offers direct to consumer and wholesale options.

They currently have 13 retail locations located in shopping plazas and upscale areas and you can find them in California and recently, Korea. They offer a comprehensive line of cold brew coffees sourced all throughout the world and most recently developed a super-premium line of cold brew ice creams.

The process in which they brew their coffee is considered to be the “fourth wave” of coffee. While third wave coffee emphasized high quality, the fourth wave is a movement in which every step in the coffee-making process is as important as any other. Reborn’s signature Green Bean Conditioning is revolutionizing  the entire process of brewing coffee. From washing beans using Reborn water to activation, to drying, the entire process is meticulously thought out.

With everything being done in house, Reborn Coffee is able to have complete control over their brewing process. They offer extensive training for all baristas, so they are equipped to educate customers throughout the entire experience.

Trending News:

In January Reborn Coffee added retail locations in California and Korea while partnering with COLLECTIVE to expand the brand into Malaysia and Indonesia.

In February they continued growing the company by partnering with Kona Coffee Producer Bay View Farm. Just in time for the warm weather, in March they launched their own line of Super-Premium Cold Brew Ice Creams.

They continue to get the word out by participating in multiple conferences on May 11th and June 6th. They also hosted a huge coffee tasting and marketing event in Florida during Formula 1 Miami Grand Prix.

Reasons for Optimism:

Reborn Coffee has succeeded in achieving our favorite metric, five consecutive months of quarterly growth indicating they are continuing to be on the rise and are operating their growth strategy. They are not resting on their coffee success and are expanding their product lines, offering more SKU’s and options such as ice cream. Coffee will always be in demand along with the demand for constant coffee innovation which they are doing by offering unique flavors and capitalizing on the cold brew market.

Reasons for Concern:

On April 28, 2023, they were officially put on notice by Nasdaq that they do not meet the dollar bid criteria and have 180 days to rise above $1 for ten consecutive trading days. Reborn Coffee currently has less cash on their balance sheet than their quarterly deficits, which could indicate the need for more capital raises as they push their growth strategy forward. While everyone loves coffee, is Reborn Coffee able to prove that they are not just a fad that will fizzle out.

Conclusion:

Reborn Coffee continues to innovate in a space that would seem fully innovated, but with their unique coffee flavors and eyes on growth they truly are giving coffee a rebirth. By meticulously caring for every step of the brewing process they are showing they have what it takes to give you a delicious cup of coffee. Everybody loves a good cup of coffee with their pie, but does Reborn Coffee have what it takes to grab a slice of your investment pie (chart)?

About Reborn Coffee

Reborn Coffee, Inc. (NASDAQ: REBN) is focused on serving high quality, specialty-roasted coffee at retail locations, kiosks, and cafes. Reborn is an innovative company that strives for constant improvement in the coffee experience through exploration of new technology and premier service, guided by traditional brewing techniques. Reborn believes they differentiate themselves from other coffee roasters through innovative techniques, including sourcing, washing, roasting, and brewing their coffee beans with a balance of precision and craft. For more information, please visit www.reborncoffee.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our recently filed Annual Report on Form 10-K, which can be found on the SEC’s website at www.sec.gov. Such risks, uncertainties, and other factors include, but are not limited to, the Company’s ability to continue as a going concern as indicated in an explanatory paragraph in the Company’s independent registered public accounting firm’s audit report as a result of recurring net losses, among other things, the Company’s ability to successfully open the additional locations described herein as planned or at all, the Company’s ability to expand its business both within and outside of California (including as it relates to increasing sales and growing Average Unit Volumes at our existing stores), the degree of customer loyalty to our stores and products, the impact of COVID-19 on consumer traffic and costs, the fluctuation of economic conditions, competition and inflation. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

About the Author:

Jon Burrington has a bachelor’s degree in accounting and has a passion for microcap stocks. He is excited to begin writing detailed backgrounds on stocks that do not always receive the attention they deserve. He hopes to be able to write frequently and is willing to perform “deep dives” on stocks on behalf of Emerging Growth upon request.

Follow Jon on Stocktwits: https://stocktwits.com/jonnyb_stocks

Email Deep Dive Requests or to have him write about your company: jonnyb.stocks@gmail.com

About EmergingGrowth.com

Founded in 2009, EmergingGrowth.com quickly became a leading independent small cap media portal.  Over the years, it has developed an extensive history of providing unparalleled content, in identifying emerging growth companies and markets that can be overlooked by the investment community.

The next step in its evolution is the Emerging Growth Conference.

About the Emerging Growth Conference

The Emerging Growth conference is an effective way for public companies to present and communicate their new products, services and other major announcements to the investment community from the convenience of their office, in an effective and time efficient manner.

The audience includes potentially tens of thousands of Individual and Institutional investors, as well as Investment advisors and analysts.

All Conference replays emerge on our YouTube Channel – Subscribe to our YouTube Channel

All sessions are conducted through video webcasts and will take place in the Eastern time zone. Our conference serves as a vehicle for Emerging Growth to build relationships with our existing and potential clients.  Accordingly, a certain number of the presenting companies are our current clients, and some may become our clients in the future.  In exchange for services we provide, our clients pay us fees in the form of cash and securities, and we may currently have, or in the future may have investments in the securities of certain of the presenting companies. Finally, certain of the presenting companies have paid us a fee to secure a presentation time slot or to present generally. The presentations to be delivered by the presenting companies (including any handouts of written materials) have not been approved, endorsed by or otherwise reviewed by EmergingGrowth.com nor should they in any way be construed to have been made in connection with an offer to sell or a solicitation of an offer to buy securities. Please consult an investment professional before investing in anything viewed on the Emerging Growth Conference or on EmergingGrowth.com.

If you believe your company, product or service is at the cusp of going mainstream, or you have an idea for an “Emerging Growth” company that might fit our model, contact us here.

Contact:

Emerging Growth
Phone: 1-305-330-1985
Email: Conference@EmergingGrowth.com

This article was written by a guest contributor and solely reflects his/her opinions.  All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. The statements in this article are not that of,  nor have they been verified by, or are the opinion of, EmergingGrowth.com. All material is for informational purposes only, and should not be construed as an offer or solicitation to buy or sell securities. The information includes certain forward-looking statements, which may be affected by unforeseen circumstances and / or certain risks. Please consult an investment professional before investing in anything viewed within.