De la Gente Annual Report 2017

LETTER FROM THE DIRECTOR Dear Friends, Thanks for checking out our 2017 annual report! We ended our 4th year as De la Gente on generally strong notes, and are pleased to be able to share our work with you.

In 2017 we grew green coffee commercialized by over 40% while working with farmers to develop new coffee products and test their quality. In roast coffee we introduced a new coffee subscription and a more regular product rotation, seeing an increase in subscribers but not yet unlocking the key to sustained growth.

We added new partners to grow SLTs by 40%, while adapting to be able to handle the larger volume and offer new itineraries. In tours we re-trained in all areas and improved processes, ending the year below our growth goal but still at 15% over 2017 with high participant satisfaction.

We launched a partnership with Root Capital to train 2 cooperatives on leadership and management, and also hosted our annual coffee congress while doubling the size of the DLG loan fund.

As the organization grows, we continued to refine procedures to adapt to the challenges of larger scale, formalizing some of the processes we need for good management. Our financial picture improved this year, and with a healthier surplus that shored up our cash reserves.

2017 also reminded us that we need to invest more time creating space to strengthen cooperative relationships, and continually rethink our approaches to economic opportunity in the complex and ever-changing landscape of coffee. Cooperative relationships and strategy review will be focuses in 2018.

Overall, DLG provided $458,909 in income to our partner cooperatives and their farmer members. This would not have been possible without all the members of the DLG family team, farmers, board, customers, and partners. A huge congrats and thanks to all - we have a lot to be proud of, as well as much to work toward in 2018. ¡Adelante!

Andy Feldman Executive Director - 1 -

MISSION: De la Gente’s mission is to create economic opportunity for coffee-producing communities.

VISION: We envision a coffee industry that is equitable and inclusive, that enables small-holder farmers to earn a dignified income and live prosperous lives, that facilitates authentic relationships between coffee producers and buyers, and that meets economic, social and environmental needs of everyone involved.

De la Gente works towards its goal through three major programs: 1. Coffee Business 2. Cooperative Assistance 3. Community Tourism We commercialize coffee, We build the capacity of our We welcome visitors to providing improved market partner co-ops to be successful local communities and open access and better, more farmer-run organizations that up a world of adventure, stable prices for farmers deliver economic benefits for immersive learning and while delivering a high quality and invest in continued cultural exchange, while product to customers. improvement of their abilities. giving back to hosts.

Our partner cooperatives: Café Artesanal San Miguel Entre Volcanes de Antigua San Miguel Escobar, Antigua No. of Members: 28

Asociación Unión de Pequeños Caficultores (UPC) La Democracia, Huehuetenango No. of Members: 164

Ija'tz

San Lucas Tolimán, Lake Atitlán No. of Members: 35

La Suiza

La Suiza, San Marcos No. of Members: 116

Asociación de Productores de Café Santa Anita (APCASA) Santa Anita, San Marcos No. of Members: 8

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COFFEE BUSINESS

We believe that the best kind of trade is built on long-term, trusting relationships, transparency and a quality product.

Having built a supply chain that directly connects coffee farmers with roasters and consumers who share our values, we are able to deliver higher, more stable prices to the producers. In consequence, the farmers can invest in their families and communities for a brighter future.

PROCESSED

TOTAL PAYOUT

$341,570.64* TO PRODUCERS 41% increase over 2016!

55

partner co-ops

351

co-op members in total

137

farmers exported coffee with DLG

What's new?

2,000+

paid on average 23% over the second best option lbs of green coffee 114,950 exported to USA, Canada & the Netherlands 42% increase over 2016

5,357 lbs

of roasted coffee sold online in USA & Canada 3% increase over 2016

2,232 lbs

of roasted coffee sold locally in Guatemala

3% decrease over 2016

people impacted

?wen s'tahW

New, 100% recycled export sacks In 2017 we partnered with the New Denim Project, a local social enterprise, to change the bags we use to export our coffee. The new sacks are made out of 100% recycled jean fabric, they reduce our environmental impact and create more economic opportunity in Guatemala!

*This is our best approximation of farmers' income. The given number is our payout to the cooperatives minus average export cost and taxes they need to pay. Milling cost or co-op overhead are not included.

"We had been searching for a long-term, sustainable relations in Guatemala when Stephanie, our Brand Manager, mentioned De La Gente to me in a meeting. Upon doing some preliminary research into DLG I was really impressed with their story, mission, and commitment to both the land and people of Guatemala. After cupping several samples we decided to go with coffee from the Ija’tz Co-op near beautiful Lake Atitlan. In January of this past year, Stephanie and I had the opportunity to visit Ija’tz to meet the farmers and see the new fermentation tank we had funded. It’s really gratifying to see firsthand the positive impact our coffee purchases make at origin."

Kevin Swenk, Roastery-Operations Manager & Green Coffee Buyer at Joe Van Gogh, NC

What's new? honey processed and semiwashed coffee by Timoteo natural processed coffee by Froilan, Manuel and Timoteo the winners of DLG Microlot Competition - Manuel, Fredy and Froilan "Explore Guatemala" coffee subscription

In 2017 we extended our offerings by adding several microlots and a new coffee subscription!

Did you know that 98% of Guatemalan coffee is washed Arabica?

But the farmers of Café Artesanal San Miguel Entre Volcanes cooperative are not afraid to experiment. That is why we could add delicious, sweet and fruity semi-washed, natural and honey processed coffees to our offer. The other microlots were purchased at a premium price as prizes in De la Gente Microlot Competition. Having so many new coffees, we decided to let you taste them all in a convenient way, so we introduced "Explore Guatemala" Coffee Club featuring a different coffee from one of our partner co-ops each month, so you can experience a new taste with every delivery.

We also launched

CASCARA TEA

- a loose fruit ‘tea’ made from dried coffee cherry to be enjoyed hot or cold!

COOPERATIVE

ASSISTANCE

We work to build the capacity of our partner co-ops to be successful farmer-run organizations that deliver economic benefits for their members and invest in continued improvement of their individual and collective abilities. Through trainings, materials & microfinancing, we provide access to the knowledge & resources they need to succeed.

MICROFINANCING 7 new loans totaling

$21,944 3 first-time borrowers!

3 machinery purchases 3 land purchases 1 youth group project

Total investment portfolio:

$91,781

37 active loans

MACHINERY & INFRASTRUCTURE Anacleto Tomas Matias received a

pacamara depulper

specially designed for his needs 2 farmers got

coffee-drying patios built or renewed

Ija'tz received

4 wormbeds

Valeriana Tajtaj Machan received a

depulper

to produce rich soil and organic liquid fertilizer

Women's Fund

Miguel Gonzalez Vasquez got his

4 farmers received new

depulper upgraded to electric - 5 -

through

coffee-drying beds

DE LA GENTE COFFEE CONGRESS In August, 15 representatives from our partner cooperatives reunited to exchange knowledge and experience between their communities. During the 3-day-long, annual event the farmers attended the 28th national coffee congress in Guatemala City, visited coffee fields in San Miguel Escobar and participated in a workshop focusing on agricultural inputs and best practices to improve yields. We also cupped all the cooperatives' coffees together.

What's new?

With the support of our partner roasters, Dave Wilson and Rob Hoos, we organized DLG's first ever Microlot Competition to Microlot Competition motivate the farmers and increase the quality of their product. 10 at Café Artesanal participants entered the competition with their best lots to win individual contracts at a premium price. The bar was set high, but San Miguel it was Manuel, Fredy and Froilan whose coffees scored best.

Root Capital is a non-profit social investment fund that works with small agricultural businesses to build long-term prosperity Financial Management in poor, vulnerable communities in Africa & Latin America. They not only provide tailored financial products, but also deliver trainings run by education in financial management. We started a partnership with Root Capital in order to strengthen our partner co-ops' ROOT CAPITAL skills and help them sustainably growth their businesses. After at Ija'tz and Café a thorough assessment and needs diagnosis, Root Capital proposed a content for a series of workshops. In total 13 training Artesanal San Miguel sessions were delivered in Ija'tz and Café Artesanal San Miguel between June and December.

"Thanks to these workshops we will be able to grow personally and through our businesses. By being better administrators of our resources, we will be able to contribute something greater to the development of Guatemala.” Wilker, a training participant

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COMMUNITY

TOURISM

Our community tourism experiences welcome visitors to local communities and open up a world of adventure, immersion, and exchange. Through spending time with local people and hearing their stories, participants experience the human side of the often faceless coffee industry, and create connections that cross cultural, linguistic, and national barriers.

TOTAL PAYOUT

$51,556.50 TO THE COMMUNITY 15% increase over 2016!

5 19

coffee tour guides

8

artisans

11

pepian cooks

What's new?

3

2,569 786

PEOPLE JOINED US FOR

coffee tours artisan workshops

PEPIAN COOKING - PEANUT BUTTER MAKING - WOODWORKING HUIPIL / BURLAP BAG MAKING - IRON WORKSHOPS 4th year in a row!

Still ranked #1 for things to do in Antigua!

“An unparalleled, authentic experience. From beginning to end the tour is informative, fascinating and incredibly insightful. (...) If there's one thing you do whilst in Antigua, do this tour.”

Coffee Tour Visitor

local interpreters

?wen s'tahW

Introduction to Coffee Cupping & Brewing In 2017 we launched a new workshop! Participants can put their sensory skills into action and try their hand at home brewing methods. We guide them through the practice of cupping, identifying aromas and flavors together. Afterwards, participants are introduced to a variety of brew methods.

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SERVICE LEARNING

Service learning trips create opportunities for authentic exchanges of culture and immersive learning experiences, while giving back to local communities.

Participants spend a week or more alongside coffeefarming families, learning firsthand about Guatemala’s rich culture and history and working on community-driven projects. SLTs leave a lasting impact on everybody involved.

TOTAL PAYOUT

$29,515.69 TO THE COMMUNITY 24% increase over 2016!

What's new?

First Service Learning Groups at Ija'tz Ija'tz welcomed Service Learning groups to their community for the first time! Trip participants built 5 worm composting beds to produce nutrient-rich soil to fertilize coffee plants, among other projects.

22 groups

305 participants joined us for Service Learning Trips

13

farmer-proposed service projects were constructed to improve livelihoods and quality of life

"I've been thinking a lot more about my food choices and making an effort to discuss what I've learned with others. I'm also rethinking my approach to how I'm going to travel in the future - I'd love to find service opportunities around the world and other ways to live among local people, not just visit places." Student Participant

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A HUGE THANK YOU TO EVERYONE WHO SUPPORTED US IN 2017 THE BOARD

DONORS

PROFESSIONAL SERVICES

Frank, Kathryn Begley, Michelle and Jonathan Green Charitable Fund, Paddle in the Park, Sanibel-Captiva Rotary Club, Xerxes Bhote

SERVICE LEARNING PARTNERS

Mickley, Graham Carson, Jeffrey and Sharon Rosenblum, Joe Van Gogh, Lisa & Lawrence Barshay, Linda Bytof and Mark Renner, Nossa Familia Coffee, Steve and Debbie Feldman, University of Wisconsin Eau Claire, WinnetkaNorthfield Rotary Club

Catriona Forrester, Deborah Feldman, Ira Silver, Les Stoneham, Rupesh Shah

+ Chris Hurley, Dan Albert, Fried $1,000

Alternative Grounds, Christopher Shen, David Wilson, Deeper Roots Coffee, Karen Lickteig, Kate Van Den Brink, Rob Hoos, Root Capital, Ryan Lodge

- $999 Arthur Fleischer, Jr., George $400

Allina Health, Dominican University, Epiphany School, Florida International University, Franklin College, Middlebury College, Peace Works Travel, Rutgers University, Southern Oregon University, St. Norbert’s College, Temple University, Texas A&M University, University of Cincinnati, UW Eau Claire, UW Oshkosh, Vanderbilt University, Whitworth University, Wolcott School

Alice Bayer, Amanda Keller, Ann $1-$399

Dorsett, Anthony Quinn, Badger Brothers Coffee, Bradley Wentlandt, Calen Beaune, Caoba Farmers Market, Cary Williams, Charles Nimick, Chas Young, Cheryl Contant, Clara Borrell, Cynthia Miles, Darby Hering, Daryl Bosma, Deborah Chatsis, Domincan University, Dwayne Gower, Eileen O'Keefe, Elizabeth Burdett, Elizabeth Edwards, Elizabeth Wall, Emmy Grace, Florence Kamm, Gary Kaplan, George and Jenny Cousems, Gerald Gabel, Gerald Hershey, Geraldo Cruz, Hailey Schuck, Henry Ricci, Herb Hurley, Herb Staniszewski, Hiroko Wachi, Janet Jacobs, Jean Warneke, Jeanne Ellsworth, Jeffrey Alan Van Brunt, Joanna Iwanicki, Joanne Linnerooth-Bayer, Joe & Merna Guttentag, Jung Son, Karen Chambliss, Karen Wasson, Karina Grace, Katharine Hawley, Kathryn Begley, Kathryn Butler, Katie Woitas, Kelly Gill, Kevin Blanchette, Kristin DeVoe-Talluto, Laura Lipson, Lori Bradish, Lucas Henderson, Lucile Hunt, Margie Powers, Martha Rersendis, Megan Bute, Michael Roberts, Moyna Matheson, Nicole Peirce, Patricia Bear, Patrick Balding, Patrick Healy, Patti Manebach, Peggy and Rick McDaniel, Phil Cogbill, Philip Dunning, RA Jacobs, Rebecca Byrd, Roast Factory, Roberta Nodell, Rocio Maciel, Samantha Gustafson, Scott Eddy, Scott Parsons, Sheila Murphy, Snapping Turtle Coffee, Sophia Tohen, Soren Patterson, Stephanie Neill, Tamara McFarland, Thomas Bosche, Thomas Farkas, Trudy van den BroekBögels, William Seligson

COFFEE BUYERS

Badger Bros Coffee, Broadsheet Coffee, Chet Sadler, Deeper Roots Coffee, Iceworks, Ikon Coffee Roasters, Joe Van Gogh, Kasira, Lighthouse Coffee, Milano Coffee, Moonbean, Mt. Maxwell Coffee, Nossa Familia Coffee, Old World Coffee Lab, Peter Warren, Phil Wingo, Richard Giles, Ridge Runner Coffee, Rustbelt Coffee, Snapping Turtle Coffee Roasters, St. Michael's Church, True Stone Coffee Roasters, The Roasterie, Utopian Coffee, Vertical Coffee Roasters, Vienna Coffee, Will Stevens, Windmill Coffee Roasters, Wings and Roots, Zona Coffee Roasters, Zion

INTERNS

Ali Olmstead, Makena Haydon, Monica Terveer

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YOUR CONTINUED SUPPORT IS CRUCIAL TO DE LA GENTE! Nothing of what we achieved in 2017 would have been possible without you. To continue our work and be able to offer resources, financing and training to our partner farmers, we need your support. A donation, a coffee purchase, a gift of time - it's all important to our success.

TO FIND OUT HOW YOU CAN MAKE A LASTING IMPACT, VISIT WWW.DLGCOFFEE.ORG/DONATE

info @ dlgcoffee.org US: 617-963-0962 GT: (+502) 7834-0142 /dlgcoffee @dlgcoffee