Third Wave Coffee Market Strategy for PAC, a Nicaraguan Farm Coop - - PowerPoint PPT Presentation
Third Wave Coffee Market Strategy for PAC, a Nicaraguan Farm Coop Sattler College APAC Partners Worldwide 1 APAC A Asked ed a Sattler er Marketing C Class s to H Help With T Two Task sks: s: Josh Blank Dylan Martin 1. Find
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buyers
to tell them so they will buy from us
Cody Sensenig Professor, Dr. William J. Oliver Dylan Martin Josh Blank Stephen Taylor Christian Taylor
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PAC can add $1.8 million in cumulative new revenue over the next three
today to $3,900 in 2023. This will require a new marketing thrust, aimed at US-based, Third Wave roasters Success of this market strategy will depend on:
and a new flow of “drip marketing” messages
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Success of this market strategy will depend on:
stories in a way that allows US coffee drinkers to be part of their success
their own marketing campaigns with coffee shops
about efforts and impact on sustainability, land and water use, impact on farmers and communities, and effectiveness of micro loan programs. PAC should become a trustworthy source for information supporting Third Wave messaging
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Success of this market strategy will depend on:
small sales to individual roasters (possibly even smaller than a container)
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company based on criteria
companies based on criteria
multiple mediums
journey
coffee industry
progress and findings
coffee companies
the criteria
companies
solidify message
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market at $35.9B in 2018
$83.6B by 2025
coffee increasing
specialty – NCA/SCA
specialty coffee growth
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and improvements are taking place
such as organic certifications are appreciated but don’t add value
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that we qualified, 47 or (49%) ranked 34 and above
companies out there!
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For each of 96 likely prospects, Sattler collected:
the lead
both the project and to pass on to PAC Then, Sattler scored each lead to develop a priority listing
Found 2,000 coffee roasters on the web Qualified 96 possible buyers Talked by phone with 6 interested roasters Sattler has provided PAC: leads, qualifying information, priority method and results, contacts, results of interviews Called, called, called, called…then called again… Collected publicly available information
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the world is.”
coffee
will make the most impact on the producer
that they even buy both low elevation and seconds
and have a good opinion of the location
Website: https://larryscoffee.com/
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Manager @ Sustainable Harvest Coffee Importers
but she made it clear that a future relationship and contact would be possible
them for testing
contracted through 3 year old relationships
has from external sources the better
Stumptown lab for testing
supply chain inspection
supplier
84 and above (SCA scale)
Website: https://www.stumptowncoffee.com/
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for cash strapped coffee startups and hold some of the liability
production
anyone who doesn't know their cost of production
each producer they work with
from a target region, from many different US coffee roasters, before even considering a producer
exporters what they want and the exporters gather up all qualifying candidates from the target region
analyze the physical qualities, taste, and profiles (beans gathered by the exporter)
and inspect the processes and growing conditions of the farm
per lb. of coffee
above (SCA scale)
Website: https://www.seycoffee.com/
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be willing to take a sample from PAC in the future
shipper to get the coffee to the US but that’s it
SSP certification, rather than FT to give more control to the farmers
to fair trade but much cheaper to obtain
process into a 100% farmer led initiative
86+ coffee (SCA scale)
purest sense and she’s seen it
Website: https://cafemam.com/
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get coffee shops started with “third wave” values
shipping coffee and have all the required certifications
farmer a higher margin through years of transport experience
and AS so that they can make sure the coffee is good before paying
ethical in one country does not mean it will be in another
could increase output
countries looking for a specific profile
producers and does quality inspections
1. Product – It has to be high quality to be worth much on the market 2. Potential for Growth – Willing to commit to goals 3. Genuine Relationship – Understanding of one another's needs 4. Business Sense – Are they actually good at what they do
meals to entire schools for one year
work that the nonprofit is doing for it to be a success Website: https://www.crimsoncup.com/
the first thing that people were told to cut was the morning latte
how can we use it as a boosting board to greater market share
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When US third wave coffee drinkers emerge from social distancing, roasters will be seeking to rebuild their marketing and supply chains – with new partners and
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sales, but apply only to selling to a few large customers
stream roasters will need
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designed to attract and support Third Wave roasters
buyers in third wave
wave roasters
days, then launch to deliver sales from the 2020/21 harvest
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pictures, biographies
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coffee roasters
resource
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metrics
understand way
roasters
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Flora De Cańa (link in notes)
and product
that inform the customer
purpose and brand
button to draw customers in
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develop relationships with known ones
ambassador/developer/marketer
summer programs
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commodity sales (no new production volume). This assumes that PAC is not able to expand coffee bean production (Trade up) -- $2.2 million in 2022 sales, up $800K from 2020
commodity volume (Incremental) -- $2.9 million in 2022 sales up $1.5MM from 2020
$1,923 to $3,895, a 104% increase
1.4 MM 1.6 MM 1.7 MM 2.2 MM $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2020 2021 2022 2023
Millions
Trade-up Scenario
Commodity Revenue Third Wave Revenue 1.4 MM 1.7 MM 2.1 MM 2.9 MM $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 2020 2021 2022 2023
Millions
Incremental Scenario
Commodity Revenue Third Wave Revenue
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$1.3 $1.8
$0.0 $0.5 $1.0 $1.5 $2.0
2020 2021 2022 2023 Millions
Net Effect of Third Wave Market Strategy (Incremental Sales less Incremental Expenses)
Annual Net Benefit Cummulative Net Benefit
represent a cumulative net benefit of $2,402 per farm
Example of Potential Investment One Time Annual Added Expense 2020 2021 2022 2023 Sales team 1 US-based FTE 25,000 50,000 50,000 50,000 CRM $100/month 600 1,200 1,200 1,200 Web site $20,000 $10,000 20,000 10,000 10,000 10,000 Video/stories $20,000 $10,000 20,000 10,000 10,000 10,000 Broker/Importer $20,000 10% of sales 20,000 24,700 61,700 148,000 $88,000 $98,000 $135,000 $221,000
Note: These are representative budgetary estimates, not based on detailed research
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to build on its 12-year history of helping farmers
$2.9 million in 2023. That is, from $1,900 to $3,900, $2,000 more for each
support Third Wave roasters
deliver sales from the 2020/21 harvest
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Support PAC as an embedded part of your team:
HubSpot, one of the leading on-line CRM tools
skills PAC has, but students are part of the US coffee culture
experience remotely producing video, which PAC captures locally
team
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findings through direct contact with potential buyers
the funnel, to close by year end
This will also help feed the direct marketing work (above)
from the 2020/21 harvest
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