BREA, Calif., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Reborn Coffee Inc. (Nasdaq: REBN) (the "Company"), a leader in the specialty coffee market, announced today that it has entered into a Strategic Memorandum of Understanding (the "MOU") with The Mighty Oak Inc., a U.S.-based produce supply and sales company, establishing a framework for cooperation in the sourcing, supply, and sale of agricultural products across the United States.
The MOU marks the Company's entry into produce supply business, a category adjacent to its existing specialty coffee operations. Reborn Coffee intends to participate as a principal purchaser and supplier rather than as a broker. Under the contemplated structure, the Company would purchase, import, and store product, hold title to that product until it is sold, and supply it to The Mighty Oak Inc., which would in turn supply it to grocery retailers through its existing vendor relationships.
The MOU focuses on four areas the parties have identified for cooperation, a structure which Reborn believes will allow it to participate in the U.S. Asian-American grocery segment without building channel access independently. Rather than committing capital to warehouses, delivery fleets, and retail account development over a period of years, the Company would apply its sourcing capability and access to capital against demand that already exists at established retail accounts. Through the MOU, the two companies intend to strengthen premium produce supply and sales networks across the United States and to build a position in the growing business-to-business market for fresh produce.
- Retail Sales Network: The Mighty Oak Inc. intends to make available its established vendor relationships with Korean-American and Asian grocery chains in the United States, including H Mart, Hannam Chain, and GW Supermarket, as well as online grocery platforms. Obtaining vendor status with grocery chains of this scale typically requires a multi-year qualification process, and the Company believes access to those existing relationships is the most immediate benefit contemplated by the MOU.
- Supply and sales coordination: The parties intend to share purchase order forecasts, source-region supply planning, and sales information so that purchasing, storage, and delivery can be planned against actual retail demand rather than against inventory built in advance. In fresh produce, where product has a limited shelf life, the accuracy of that planning is a primary determinant of profitability.
- Demand forecasting and logistics optimization: The parties intend to pursue the deployment of artificial-intelligence-based demand and supply forecasting models together with delivery-route optimization. The objective is to reduce spoilage and inventory carrying costs, which are persistent sources of margin pressure in the fresh-produce business, and to improve the speed at which working capital cycles through the business.
- Product development: The parties intend to cooperate on small-pack and gift packaging formats, private-brand products, and premium Korean-origin fruit lines such as Tamnabong citrus. The intent is to build a differentiated assortment that supports pricing on quality and presentation rather than competing on commodity pricing.
"This memorandum represents a meaningful step in our long-term vision to build Reborn Coffee into a diversified global platform," said Jung Jae Lim, Chief Executive Officer of Reborn Coffee Inc. "Produce distribution draws on the same sourcing and supply chain discipline we have built in specialty coffee, and The Mighty Oak Inc. brings retail relationships that would otherwise take years to establish. Our focus from here is execution: negotiating definitive terms, building the compliance and working capital framework this business requires, and reporting substantive developments as they occur."
"I have spent twenty years building produce supply chains across the U.S. market and have led The Mighty Oak Inc. to strong month-over-month sales growth since its founding in April 2026," said Simon Jung, Chief Executive Officer of The Mighty Oak Inc. "Combining Reborn Coffee's sourcing capability and access to capital with our retail vendor network and demand forecasting gives both companies a clear path to scale."
As Reborn Coffee continues to pursue growth beyond its core retail coffee operations, management believes the MOU supports the Company's broader objective of building a diversified platform across specialty coffee and agricultural products, while continuing to support the long-term global development of the Reborn Coffee brand.
Nature and Status of the MOU
The MOU is a non-binding statement of intent. Other than provisions relating to confidentiality, term, governing law, and general matters, the MOU does not create legally binding obligations and does not require either party to enter into any transaction or to make any investment or expenditure. The MOU has an initial term of two years, subject to automatic renewal, and may be terminated by either party on sixty days' written notice. There can be no assurance that the cooperation contemplated by the MOU will generate revenue or earnings for the Company.
About Reborn Coffee
Reborn Coffee, Inc. (NASDAQ: REBN) is a California-based specialty coffee retailer focused on delivering high-quality, handcrafted coffee experiences. With a growing global footprint and a dedication to innovation, Reborn is redefining the coffeehouse model through its premium products and technology-forward initiatives. For more information, please visit www.reborncoffee.com.
About The Mighty Oak Inc.
The Mighty Oak Inc. is a U.S.-based supplier of agricultural products serving grocery retail channels in the United States. Information in this release regarding The Mighty Oak Inc. has been provided by The Mighty Oak Inc.
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 recent filings with the Securities and Exchange Commission ("SEC") including our Form 10-K for the year ended December 31, 2025, 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 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.
Contacts
Investor Relations Contact:
Chris Tyson
Executive Vice President
MZ North America
REBN@mzgroup.us
949-491-8235
Company Contact:
Reborn Coffee, Inc.
ir@reborncoffee.com
