Caravali Coffees, Java City Agree To Merge, Look To Expand

Caravali Coffees of Kent and the Java City coffee chain, based in Sacramento, Calif., are merging in a move to grow nationally by combining their wholesale and retail businesses.

The companies will be a unit of privately held Cucina Holdings in Sacramento.

The company has no connection with the local Cucina Cucina! Italian Cafe chain. The coffee companies will continue operating under their existing trade names.

No money changed hands in the deal and no job losses are expected, officials said.

The combined company will have more than 750 employees and estimated revenue of $43 million for the 1997 fiscal year ending in June.

Howard Lieberman of Caravali will be chairman of the combined company, and Java City's Tom Weborg will be president and chief executive officer. Company headquarters will be in Sacramento.

Caravali was the wholesale arm of Starbucks Coffee from 1983 to 1987. Howard Schultz bought Starbucks in 1987 and another group of investors bought Caravali.

Caravali remains primarily a wholesaler and roaster, with 90 employees in the Seattle area and facilities in Kent. It has retail cafes in Edmonds, Puyallup, Dallas and Pacific Grove, Calif.

Java City, also a wholesaler and roaster, is known mostly for its 40 retail stores in California and Arizona.