Crystal Rock Holdings, Inc. engages in the production, marketing, and distribution of bottled water under the Crystal Rock and Vermont Pure brands. The company also engages in the distribution of coffee, including its Cool Beans brand; ancillary products and other office refreshment products; and office products under the Crystal Rock Office brand. It operates primarily as a distribution business to homes and offices, using its own trucks for distribution throughout New England, New York, and New Jersey. To a lesser extent, the company distributes its products through third party distributors and directly through vending machines. Products The company sells its Crystal Rock and Vermont Pure water brands in 3- and 5-gallon bottles to homes and offices throughout New England, New York, and New Jersey. The company rents and sells water coolers to customers to dispense bottled water. Its coolers are available in various consumer preferences, such as cold, or hot and cold, dispensing units. In addition, the company sells and rents units to commercial accounts that filter water from the existing source on site. The company also rents and sells coffee brewing equipment and distributes various coffee, tea, and other hot beverage products and related supplies, as well as other consumable products used around the office. It offers vending services in some locations. The company owns the Cool Beans brand of coffee, which the company distributes throughout its market area. In addition to Cool Beans, the company sells other brands of coffee, primarily Baronet and Green Mountain Coffee Roasters. Office Products Line In 2011, the company began to distribute office products under the Crystal Rock Office brand throughout Connecticut. The company primarily purchases office products from large national vendors, such as S. P. Richards. Marketing and Sales The company’s products are marketed and distributed under four house brands, such as Crystal Rock Waters, Vermont Pure Natural Spring Water, Cool Beans Coffee, and Crystal Rock Office. Its coffee line includes approximately 70 varieties in different types of packaging. It also re-sells other coffee and tea selections. The company’s office products line features approximately 40,000 products, including supplies, equipment, and furniture, targeted for small and medium-sized business. Distribution The company sells and delivers products directly to its customers using its own employees and route delivery trucks. Deliveries to customers are made on a regularly scheduled basis for water, coffee, and ancillary products. The company bottles its water at its facilities in Watertown, Connecticut; White River Junction, Vermont; and Halfmoon, New York, as well as has water bottled for the company in Buffalo and Clayton, New York. Suppliers The company’s principal coffee suppliers are Green Mountain Coffee Roasters and Baronet Coffee. Its principal bottle supplier is Parker Plastics. Strategy The company’s original strategy contemplated improving the portion of its business by, in part, improving its information technology infrastructure to facilitate online sales. Its strategy also contemplated growth by acquisition. Seasonality The company’s business is seasonal. The period from June to September, when the company has its highest water sales, represents the peak period for sales and revenues due to increased consumption of cold beverages during the summer months in its core Northeastern United States market. Conversely, coffee has a peak sales period from November to March. Sales of office products and supplies fluctuate based on traditional peak and off-peak usage periods. Trademarks The company owns the trade names of the principal water brands that it sells, such as Vermont Pure Natural Spring Water and Crystal Rock. The company also owns the Cool Beans coffee brand and Crystal Rock Office products brand; and owns or has rights to other trade names that are not a part of its business. The company’s trademarks and label designs are registered with the United States Patent and Trademark Office. Government Regulation The company’s bottled water must meet the Federal Food and Drug Administration (FDA) requirements of safety for human consumption, of processing and distribution under sanitary conditions, and of production in accordance with the FDA ‘good manufacturing practices’. The company is subject to the food labeling regulations required by the Nutritional Labeling and Education Act of 1990. The company is subject to periodic, unannounced inspections by the FDA. Upon inspection, the company must be in compliance with all aspects of the quality standards and good manufacturing practices for bottled water, the Fair Packaging and Labeling Act, and all other applicable regulations that are incorporated in the FDA quality standards. All of the company’s plants and distribution locations are registered with the FDA under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002. Competition The company competes with Staples, Office Max, Office Depot, and W.B. Mason. Its principal competitor is Nestlé Waters North America. History Crystal Rock Holdings, Inc. was founded in 1989. The company was incorporated in Delaware in 1990.
crystal rock holdings inc
(CRVP:Consolidated issues listed on NYSE MKT LLC)
1050 Buckingham Street
Watertown, CT 06795
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