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TheStreet Open House

Marley Coffee And AVT Bet Big On The Future Of Automated Cafes

CORONA, Calif., Feb. 6, 2013 /PRNewswire/ -- AVT, Inc. (OTC Markets: AVTC) ( www.autoretail.com ) announced that they have opened a new sales office dedicated to Marley Coffee.  The AVT Marley Coffee sales headquarters features a large showroom, and will be staffed with personnel that focus on obtaining locations for AVT-owned Marley coffee systems, and assisting entrepreneurs and business owners obtain and operate a Marley Coffee Automated Cafe.

AVT is the exclusive U.S. distributor of Marley Coffee branded kiosks and automated coffee stores, and will put 2,000 company-owned units into the market within the next 2-years, and has projected sales from these systems to top $24 million by year-end 2014.

These automated "Marley Cafes" are able to brew a cup of freshly ground coffee as well as any barista, but at a fraction of the cost. Some Marley Cafes come with seating areas that allow patrons to get a cup of coffee and then relax in comfortable over-stuffed chairs.

A few days ago, Marc Andreessen, the creator of Netscape and noted venture capitalist, stated that stores will die off, and that technology-based systems will be the new model. Examples of this are how Redbox helped put Blockbuster our of business. "Retail chains are a fundamentally implausible economic structure if there's a viable alternative," he said. "You combine the fixed cost of real estate with inventory, and it puts every retailer in a highly leveraged position. Few can survive a decline of 20 to 30 percent in revenues. It just doesn't make any sense for all this stuff to sit on shelves. There is fundamentally a better model."

"We don't agree with Mr. Andreessen and think that retail will completely die off," said Brent Toevs, CEO of Marley Coffee. "But we think that the bricks and mortar approach will rapidly retrench as new, more affordable delivery methods take their place."

"The Marley Cafes are the way of the future," stated Shannon Illingworth, CEO of AVT, Inc. "Why put up a large retail store like Starbucks - with all the associated overhead - when for a few thousand dollars, you can produce a better cup of Marley gourmet coffee, and place these self-service cafes virtually anywhere? We can put a beautiful Marley Coffee Automated Cafe almost everywhere that people congregate – even in places that could never hold a Starbucks, like office and apartment buildings, college campuses, and hotel lobbies, to name a few."

The automated, self-service sector is exploding, according to a report in Investor's Business Daily. They stated that the industry will reach $1.1 trillion by 2015, using projections compiled by the IHL Group.

"(Many) retail guys are going to go out of business," Andreessen added. "We're still pre-death of retail, and we're already seeing a huge wave of growth... We view this as a long term opportunity."

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