Brea-based Reborn Coffee Inc. has entered into a new distribution partnership with global food distributor Sysco Corp. to improve the company’s supply chain and operating model as Reborn expands its physical footprint.
“A strong distribution platform is essential to scaling a franchise system while protecting product quality and brand consistency,” Chief Executive Jay Kim said in a statement.
The specialty coffee retailer will have access to Sysco’s distribution network and product ordering infrastructure as well as the company’s quality assurance resources, food safety protocols and local sourcing support. Reborn counts 10 locations in the U.S., according to its website.
“We believe this relationship will help us expand more efficiently and better support our operators across the country,” Kim added.
Shares of Reborn Coffee rose 8.5% to $1.83 apiece during midday trading with a market cap of $13 million (Nasdaq: REBN). It last reported total revenue of $1.4 million for the third quarter ended Sept. 30.
Reborn recently regained compliance with Nasdaq’s minimum stockholders’ equity requirement in January after receiving $6.5 million in gross proceeds from an equity investment priced at $5.45 per share.
