August 2017 | Vol. XXX No. 8 www.coffeetalk.com
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Should I Add Roasting to My Store? 12 GETTING PROFITABLE Attracting New Customers to Your Business 16
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Five Steps to Direct Trade Success Based on Quality
Third Wave Producers
Should I Add Roasting to My Store?
CoffeeTalk in Brazil
Attracting New Customers to Your Business
Coffee Service Corner Buy, Sell or Grow
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THE VIEW Kerri Goodman
This month we dedicate this space to honoring an industry icon and friend, Skip Finley. It is so very rare that a single person is so loved and appreciated by so many in a single industry. Please hold Skip and his beautiful family in your thoughts and hearts. Just a few of the many dedications to this amazing man Love and hugs and prayers and more hugs - I will hold all the memories of our times throughout the years close to my heart ...I will always smile when I think of you. Love you buddy.
People come into your life for a reason. Learn from them, grow and appreciate what they have taught you. We haven't known each other long but I'll never forget being greeted by you with such a warm and thoughtful welcome. It was honest and sincere and I will treasure the time I was given to know you.
Danielle Coleman Payne
Skip me and old lady are always thinking of you. I guess it's time for us to make a trip down to see you all. Peace bother. 6
I am pretty bummed I couldn't find a picture of the two of us together as evidence, but the memories of my time on the coffee circuit are filled with your smiling face! Megan Graham
Headed back to the States for a couple days. Need to go see a Friend, Brother, Coffee Industry Icon. One hell of a Amazing Guy. Skip Finley
Mike Love August 2017
Five Steps to Direct Trade Success Based on Quality by Ben Weiner, Gold Mountain Coffee Growers, L.L.C.
1) Be there: Travel to origin and cup coffees, then return as the coffee is being packed for export. To avoid coffee switching, take samples yourself from the actual export bags. Roast and cup them. Mark the bags destined for your roastery and watch as they are sealed. Send your favorite barista or cupper if you can’t make it.
oasters in the third-wave of coffee need a direct-trade supply chain that values quality and traceability. Below are five key steps they should take to ensure both. Unfortunately, the C Market and certifications of coffee farms create incentives for volume, but not quality. Why should a coffee farmer who gets paid $1.15/lb most years ($2.00/lb once every blue moon) pick Photo credit: Gold Mountain Coffee Growers (@goldmtncoffee) with perfect ripeness, Coffee Roaster Eric Mason sources coffees in ferment well, wash Nicaragua with Gold Mountain Coffee Growers. coffee well, and pick out imperfections on raised beds when her pay barely lets her family eat? Certification systems may have “premiums” tied to volume, but they are often consumed by administrative fees and export fees. Unless farmers are connected directly to specialty markets that place value on quality, their main incentive will be volume, not high-cupping coffee. Third-wave roasters wishing to obtain high-cupping coffees nowadays need to seek out direct-trade relationships. Increasingly-educated customers and “foodies” in the globalized world (think of the local movement in “Portlandia”) expect roasters to know their coffee farmers and the processes used to produce their coffee. They expect traceability, not a certifier’s generic stamp. News articles are shedding considerable light on gaping flaws in certified coffee supply chains, and roasters can do much better. Roasters seeking to establish effective direct-trade relationships based on quality should at a minimum follow these five steps:
2) Engage: Make sure the coffee you purchase is traceable to a specific coffee farm. Visit the farmers. If your export and import partner won’t allow you to visit the farm or if they make excuses, the lack of transparency should dissuade you from that business relationship. 3) Reward directly: When your coffee reaches 87 points or more, give the farmers a quality premium directly (in their hands) and make clear that it is because of the quality they achieved. If you are working with multiple farmers, give the highest-cupping coffees the highest quality reward. 4) See for yourself: When you visit a farm, notice its environmental impact. Did the owners chop down forest to plant coffee? Does the farm protect forest? Are there shade trees? A certification isn’t enough. Verifying environmental protection is more meaningful. 5) Get all the info: If you must rely on importers and can’t get to origin yet, ask them tough questions about the farmers and coffee, as well as coffee processing. Does your importer know the family members of producers? Can they tell you the latest goals and challenges of the farm? When did they last visit? Can they call or visit the farmer within a week or two to ask a few questions for you? Can you visit whenever you’d like? If any of these answers is no, you should look for a more direct connection with origin. Ben Weiner is the founder/CEO/chief farmer of Gold Mountain Coffee Growers, LLC. He is a recognized speaker at the SCA show in Seattle (April 2017) on how to achieve quality through direct trade relationships. You can learn more about coffee processing and get sample roasting tips at www. goldmountaincoffeegrowers.com and see what they’re up to at origin at @goldmtncoffee (Instagram, Twitter, Facebook).
Photo credit: Gold Mountain Coffee Growers (@goldmtncoffee)
Farmers in direct-trade relationships based on quality have incentives to produce meticulouslyprocessed coffee. Here coffee is being washed on Finca Idealista in Nicaragua.
Photo credit: Gold Mountain Coffee Growers (@goldmtncoffee)
On Finca Idealista in Nicaragua the farm utilizes volcanic filters to clean water after it is used to wash coffee. This prevents environmental contamination. The farm also bought a rainforest just to protect it and was awarded the 2016 excellence award for sustainability by the Specialty Coffee Association of Europe.
Photo credit: Gold Mountain Coffee Growers (@goldmtncoffee)
Roaster Karl Fisher of Alabaster Coffee in Williamsport, Pennsylvania visits partner producers of Gold Mountain Coffee Growers in Nicaragua. Here Karl stands with Sebastiana Diaz Ortiz on her farm. He traveled through a river, past men with large guns, and over mountains to get there.
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Third Wave Producers by Sherri Johns, WholeCup Coffee
ne thing for sure about coffee is that it is always changing, evolving, moving forward. A few years back with the onset of barista competitions, we experienced the evolution of people, who in the past had perhaps simply slung shots of espresso for the masses, into fine craftsmen and craftswomen of coffee. Taking chances with coffee and customers to provide an experience like no other. With each signature drink we tasted, things were changing. As a chef approaches his ingredients, so does an aspiring and inspired barista, examining every step along the way to differentiate themselves. Innovation comes in all forms and at all levels. The barista became a “movement” and was affectionally dubbed “third wave”. That phrase is almost passé now in cafés, but is taking off in the coffee-producing world. Here’s how. Varietals in vogue: bourbon, pacamara and now gesha. There is a season for taste and new styles in flavor preferences. Will the hybrid Centroamericano be next? Enter “third wave” producers. Some would disagree with this title; I mean no offense. It is used here to simply describe the young producers who are taking on new forms of expression by way of processing with their coffees. First, we have naturals, then honeys, with yellow, gold, red and black honeys. Brazil’s specialty sector had a hit early on, with natural-processed coffees. Famously delicious in espresso, adding complexity and mouth feel, this nation’s coffee led the way for years on naturals. I believe Brazil holds the record for the largest export of Natural coffees, and even has an independent Cup of Excellence competition dedicated to them. Now “upstart” countries are getting into the fray of natural and honey processed coffees, to the delight of roasters everywhere. Costa Rica is a country known for perfectly balanced body, flavor, and acidity, and was a go-to origin for almost all coffee buyers. There was a large company in the Northwest who opened every cupping session with a high-quality Costa Rica on the cupping table. The owner believed that the first cup on the table set the pace and calibrated the cuppers in clean and sweet. I am not sure if this practice exists today, but I can tell you: then, every coffee had to measure up. Fast-forward a few years, and Costa Rica is on the
forefront of innovation in honey processing. Honey processed coffees, by name, first sprang most notably from Costa Rica (although Colombia was right along beside them) and have since become a favorite of roasters and importers around the world. Honey processing is drying with skin removed but leaving various amounts of pulp, adding the sweetness we love in our cup. Childern are growing up and taking over the family farms. As parents retire or lose interest in the family farm, the younger generation is keen to jump on board. In the past, it would have been difficult to ask the parent caring for the coffee farm to change. Asking Papa to leave mucilage on beans while drying, which had never been done before, might have been interpreted as an insult to the father and grandfather. But now, enter the “third wave producers”. Ideas flourish from visitors to the farms, attendance at trade shows, networking online and cupping. Previous generations might have thought quantity; newer generations think quality. As older generations leave day-to-day farming, the new generations are bringing new ideas and interests to the (Cupping) table. Third wave coffee produces are willing and excited to try new techniques, and are setting the bar high with new taste profiles. Smaller lots may provide greater opportunity to try something different and to pay close attention to every detail. Not all honeys are golden. Too much fermentation leaves the coffee, well... fermented. Need I say more? With honey processing, there is no turning back if the process goes awry. Honduras, El Salvador, even Burundi are producing naturals and honeys with varying amount of acclaim. Many countries are experimenting with this. Some might disagree with the “name” Third-Wave producers, but it is a reference only in how this might relate to the baristas of today. Creative, driven, and risk-taking. We are probably on the 5th or 6th wave by now, anyway. This is a reference as one might use millennial, gen x-ers, or even bobby-sock-ers to describe a style of thinking, a thought process, or mindfulness. It’s not a label. Me, I am more of a beatnik. Third wave producers are selling their coffees to third wave buyers.
Honey processed meets Nitro Cold brew – now that’s a cuppa! August 2017
SHOULD I ADD ROASTING TO MY STORE? by Rocky Rhodes
f you own a retail coffee shop or a restaurant that has a high volume of coffee sales, the thought has crossed your mind to look into roasting your own coffee. This is an intriguing question that begs many more questions. In this article you should discover a progressive line of questioning that you must get through if you are to make a good decision.
Increasing sales is a better reason to do this. Set a program in place that will celebrate YOUR coffee. Tell the story of why and how you can craft your coffee better than some outside vendor. You can charge more for drinks, but you will also find that you have a new revenue stream of selling pounds of coffee over the counter.
So let’s start at the top: SHOULD I roast coffee? To answer this question requires an introspection on your coffee volume in your business. Often this question is driven by the financial desire to lower costs. It could also be seen as a way to increase coffee sales. Unfortunately for most single store-front owners, only one of these is a good reason to roast your own: Increase sales.
If you have asked the ‘should’ question and have decided it is a good idea, you can move on to the next part of your research.
Reducing costs really takes a long time to cost-justify a machine, dedicated retail space, employee training including roaster training, and an investment in green bean inventory that will always be money tied up on a shelf. The basic numbers you should look at in terms of cost is to hope to break even on an instore roasting program. More than likely you will end up paying more for your coffee.
Starting with your landlord, ask if this is an allowable activity. You will now be blowing smoke into the area where your shop is located. If you are next door to a bridal boutique they will likely not be too happy to have smoke rolling through the front door. If you are in a high-density location, you will need to consider if you will need to purchase smoke abatement technology. This tends to be pretty expensive but can make for kind and supportive neighbors. In addition, your landlord has to agree that you can puncture the wall or roof in order to get the venting to the outside.
CAN I roast coffee in my store? One of the frustrating things about being a shop owner is that you can’t always do what you want. In the case of adding a roaster, you will need to get ‘permission’ from other parties.
either. Once you get to the 12 kilo size you will likely need some additional thought and infrastructure like walling in the roaster, perhaps in a glass room, to keep the spectacle but control the environment. There are space concerns with adding roasting. The three big considerations on space are Green Storage, Roasting Production, and roasted coffee Packaging and Storage. Depending on what you are planning to roast, it is not uncommon to have 10-20 different green coffees in stock at any one time. Since most coffees are sold by about 60 kilo sacks, you could need 40 square feet depending on how you will need to store the green. This is where you consider a storage container nearby so you don’t eat your retail seats for green coffee storage. Let’s assume your landlord says yes. You also have to have enough gas coming to your store to run the roaster and any abatement device you might use. If there is not enough gas, you are at the mercy of the gas company to see if they will even run an additional line. If they will, it could get pricey. After the gas company, then comes the air quality board, city zoning, county health departments… Bottom line is that you need to get permission and have the infrastructure BEFORE you buy the roaster. Most small roasters of 5 kilo or less fall under the radar of most regulatory agencies, but you need to understand the rules. HOW will roasting affect my business? Plan on hiring a new employee to manage the coffee roasting segment of the business. Unless you are a franchise with support from corporate, learning what you need to know and the skills you should have on staff is a bit daunting. Someone must learn how to order green coffee, roast that coffee, package that coffee, and educate the staff on how to sell it all. The comforting thing is that this has been done thousands of times and it is a predictable skill set that you can hire from the outside or promote from within. WILL Roasting even fit in my store? The comfort of your customers is extremely important. You will be adding a gas oven to a retail environment. This will produce heat and noise. The good news is that machines from 1kilo – 5 kilo in size are not going to add a lot of
Roasting production should take about 80-100 square feet in your retail area. It is there so people can see it, smell it and talk about it. It also allows you adequate access to clean the roaster and perform maintenance. After the coffee is roasted you have to DO SOMETHING with it. Just NSF containers on a shelf are good for use in your own store. Then just scoop out what you need. If you are packaging for sale you will need some work area dedicated. You will need a scale, grinder, foil bags and a heat sealer. All of this could be done in an area as small as an 8’ table. You also have to have room to store your finished goods. So if you are still reading, you have not likely been scared by the decisions above. That is good because it will take that kind of forethought and vision to launch the program and to have it be a profitable decision. Enjoy your roasting! Rocky Rhodes is an 18 year coffee veteran, roaster, and Q-Grader Instructor, and his mission now is to transform the coffee supply chain and make sweeping differences in the lives of those that produce the green coffee. Rocky can be reached at rocky@ INTLcoffeeConsulting.com
Photo by Trish Rothgeb
CoffeeTalk in Brazil by Maxim Vershinin
BASF, a leading worldwide chemical company, and Cooxupé, the biggest coffee cooperative worldwide, invited CoffeeTalk to take part in a Brazilian coffee media summit in April. About one third of all coffee in the world comes from Brazil, making it by far the world’s largest coffee producer. In the 2015/16 season, about 50 million bags were produced in Brazil. The coffee plantations are mainly located in the southeastern states of Minas Gerais, São Paulo and Paraná where the environment and climate provide ideal growing conditions. CoffeeTalk sent freelance journalist Max Vershinin who was able to talk with farmers, agricultural experts and executives from BASF Crop Protection, and visit a number of coffee farms along the way. Max was able to view the latest technologies in growing coffee in Brazil, and how BASF and Cooxupé work together to contribute to more sustainable agriculture in Brazil. Max also learned how the coffee value chain works together, and also was able to meet and hear the personal stories of Brazilian coffee farmers.
his April, I travelled to Brazil to meet up with hard-working coffee farmers and explore what Brazil has to offer coffees today in terms of quantity and quality.
After watching BASF’s presentation and attending a Sustainable Coffee Conference in Sao Paulo, several journalists and I visited Cooxupé, Brazil’s biggest coffee cooperative, based in a small city Guaxupé, in the southwest of the state of Minas Gerais. Cooxupé cooperative was truly impressive. It was amazing to see how well everything was organized and how the latest coffee processing technology was implemented on such a large scale. We saw facilities with machines receiving and segregating coffees using light technology, modern labs filled with scientific staff; giant fully automated roasting equipment with a myriad of tubes going across several rooms; and, of course, enormous warehouses filled with millions of coffee pallets ready to be shipped all over the world. What struck me the most, however, was that with all this technology behind everything that Cooxupé does, they still manage to retain a strong human connection. There is a real sense of community - from the upper management to the warehouse pallet handlers. Next, we made a visit to several of Cooxupé farmers to understand what makes Cooxupé possible. The farms were well-developed, with modern housing and sophisticated farming tools. Farmers talked about their contentment with Cooxupé thanks to fair prices, farming equipment
discounts, and security for their coffee, as crime is still problematic in Brazil. Even coffee beans can get stolen during storage or transport. Cooxupé is open about their pricing, and they encourage every one of their members to seek the best available prices. Farmers can sell any amount of coffee they choose to Cooxupé and continue selling the rest anywhere else. Cooxupé doesn’t allow private companies to be members; its membership is for farmer families only. The second part of my trip was to O’Coffee, a specialty coffee producer based in Pedregulho, Alta Mogiana region of Brazil. There are six state-of-the-art farms with five million coffee trees among Bourbon, Cauaí, Icatu, Mundo Novo, Acaiá and Obatã varieties with average production of 35,000 bags per year. They have fourteen different coffees and custom-made blends – Microlots, natural, pulped natural (honey process), fully washed. Sixty percent of their trees are irrigated using a drip irrigation system. They harvest beans both mechanically and manually, the latter being very rare for Brazil. O’Coffee is Rainforest Alliance and UTZ certified. As soon as you enter the estate you are surrounded by a natural beauty of green, neatly divided coffee farms. Most management lives on the estate in company-provided housing while visiting clients and coffee professionals are lodged in a converted hundred-year-old train station. The processing, storage and roasting facilities, while smaller in scale, are just as advanced as those of Cooxupé.
14 August 2017
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Getting Profitable Lesson 6: Building Sales – Part 3: Attracting New Customers to Your Business
he number-one reason for coffee business failure is the owner’s inability to attract enough customers to generate a profit. In the last article we discussed how to produce additional sales and visits from your existing customers. In this article we’ll explore how to attract people who have never visited your store before.
will buy a pastry or sandwich with their free drink, so you’ll actually end up making some money. Years ago when I owned one of my restaurants, I spent $650 to place a one-time newspaper ad with a coupon. I got back two coupons; it cost me $325 per customer! Doesn’t giving away $1.50 sound infinitely better?
To attract new customers, you will need to market your business. I recommend using “guerilla” marketing techniques as opposed to conventional media (TV, radio, newspaper, billboards, etc.). It’s not that conventional media doesn’t work, but it tends to be expensive. Let’s face it, you probably don’t have the budget to fight it out with Starbucks using television commercials. But, like a “guerilla fighter,” you can employ creative low-cost methods to get your business’s name out into the community, and entice consumers to visit it.
After you have completed a few distributions with your “free drink” coupon, you might want to go to a “buy 1 – get 1 free” coupon. The idea is to get your new customer to bring someone with them to your store. Then, simply create coupons for whichever area of your business you want to build up. This might include running a “half price panini” coupon, or a “free appetizer with the purchase of a glass of wine or beer” coupon, or a “$5 off 1 lb. coffee beans” coupon.
In reality, 90% of your customers probably live, work, or go to school within a mile of your business. This will be the area you’ll want to target your promotions to. Start by getting a map of your local area, put a dot where your store is, and using the scale on the map, draw concentric circles in ¼ mile increments around your store. Next, divide your circles into pie shaped wedges. This will create multiple sections, each being an area to market to. Start by marketing to those sections that are within your first ¼ mile circle, then systematically work your way out to those sections that are further away. Your goal is to personally distribute marketing materials to all the sections on your map. If you dedicate a couple of hours 3 or 4 afternoons a week, it might take a month or two to accomplish this. Simply visit all the businesses and residences within a section each day. I think it is important for you, the owner/manger, to be the person who does this, at least for the first couple rounds of distributions. Why you you ask? First, no one will promote your business with more passion or accuracy than you will. Second, and even more important, you’ll need to establish a relationship with your neighbors, because in the future you will want to ask them to help you market your business. For distribution materials, I like to pass out to-go menus with a coupon attached. The menu will allow people to see what you have to offer, and should include daily drink and lunch specials. Because your specials will always be changing, it will give you an excuse to keep going back to the same people to provide new information.
by Ed Arvidson
For coupons, start off with a “free drink.” “Free” is one of the strongest motivators in advertising. I’d use this coupon for my first 2 or 3 rounds of distributions. Don’t be worried about the cost. First, only those who come in to redeem the coupon will cost you anything. And, with your most expensive drink probably costing you only $1.50, it’s actually an incredibly cheap means of getting people to visit your store. Not to mention that some of these folks
Enticing people to visit your business multiple times through the use of coupons will help establish a habit of coming to your store. Nothing establishes a habit like repetition, and nothing will motivate return visits more than free or discounted products. After you have established a first-name relationship with your neighbors, leverage your advertising efforts by asking them to promote your business. The strategy that will motivate them to do this, is making them look like a “good guy” or “hero” to their customers. Mock-up a coupon that predominately features their business, and that thanks customers for their loyal patronage. Then, as a reward, the coupon should should entitle them to a “free beverage” at your place! This action costs nothing to your business neighbors, and it will create good will between them and their customers. Of course, tell them that if they will do this, you will be willing to distribute any of their promotional materials to your customers in return. I think that it goes without saying, that you should only pursue this strategy with businesses you are not in competition with. Beyond what has already been covered, don’t overlook placing an ad and coupon in local dining and entertainment newspapers or magazines that are free to the public. An ad in one of these publications can cost as little as $50 to $100. Also, featuring what you have to offer on social media will also help get out the word and attract customers. Your persistence and follow-through on marketing your business will be critical to your success. Advertising is similar to exercising. You can expect noticeable results after just one or two times. You need to commit yourself to a regular routine that you execute without failure. If you do this, after a few weeks and months you will start to see meaningful benefits. Ed Arvidson is a 25-year veteran consultant to the Specialty Coffee industry, and President of E&C Consulting. Elements of this article are from his new book, “How to Get Profitable in the Coffee Business.” www.coffeebizhelp.com
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Coffee Service Corner
BUY, SELL OR GROW
s I began my tenure as a Coffee Service Operator around 1990, my company was in national expansion mode and very aggressive on the acquisition front. Around this time, many first-generation operators found themselves with no appealing succession chain options and en masse there was an abundance of acquisition candidates on the market and an equal number of interested buyers. During this time, the price of OCS companies proved to be excellent values, very much in favor of the acquiring companies. Very few sellers and buyers were dealing with the unknown multiples of EBITDA or other traditional divestiture formulas but instead the common value denominator had evolved into multiples of annual gross profit. Over a ten year period, my company paid, on average, one years’ gross profit and acquired dozens of operators around the country. It was indeed a great value for us and proved many times to be a better alternative than building a business from a zero base in a new market and having new business writers sell our way into the expanded market. Today’s market is robust for buyers and sellers alike, although the price of poker has gone up for the acquiring companies. The industry is reporting acquisitions paying closer to one times annual sales rather than profit. And in some cases the multiple has exceeded this. Buy? At least three of the “big five” OCS operators are in active acquisition mode. First Choice recently announced the acquisition of Blue Tiger, a first class OCS operation based in Seattle and very active in multiple markets. Additionally, a number of very strong, progressive regional operators are reporting acquisitions from coast to coast. Just this past week, Accent Foods based in Pflugerville, Texas announced the acquisition of the assets of Texas Refreshments, a multi-state vending and OCS operation. This comes on the heels of their East and West coast acquisitions and/or partnerships. Our industry remains highly fragmented and many acquisition candidates remain. To compete with the nationals, growing critical mass for the local and regional operator is critical. Most number crunchers of the acquiring companies report being quite satisfied with the R.O.I.s that they are realizing paying current market prices. Sell? Listed OCS Companies are not remaining on the market long these days. In most markets, multiple players can be readily found creating a healthy competitive situation for the seller. Most processes are quite simple and due diligence tends to be well organized and painless for the most part. Selling is personal. Sometimes growing economic hardships and obligations prompt the sale, allowing the seller to exit a difficult situation and walk away with sufficient retirement funds. Often it’s “just time”. I know a number of operators that had no desire to remain in the business and were ready to reap their hard earned rewards and move on and out of the industry into a life of leisure.
Other times a more youthful seller might seek to remain in the business but desires to be a part of an entity that is larger, stronger, and positioned for
by Ken Shea
hyper growth. Similarly, an acquiring company is always on the lookout for great talent! Regardless of the need or motivation, now is a great time to sell. Seek out a professional broker who can guide you around the potential landmines. Grow? I have seen many landmark changes over my three-plus decades in this great industry. I can confidently say that opportunities to grow one’s OCS business have never been better from my perspective. The primary reason is that traditional office accounts have never been more willing to expand their amenity offerings than they are today. Millennials are driving much of this as they expect more amenities. The demand is coming in the form of better-quality coffee, more and better cold beverages and snacks…. salty, savory, decadent, better-for-you…demand is all over the board. I met with a leading West Coast operator recently who reported that his fastest growing OCS SKU for the past 12 months was bananas!! Build the Ticket – Amenity or Charged While today’s business owner or office manager is certainly more willing to provide more “free” products to their employees than ever before, there are also easy-to-use, intuitive payment APP solutions for offices that opt not to subsidize the expanded list of goodies. Some apps reside on the employees’ cell phones. The employees fund their own account. At the point of purchase they then scan the product that has been supplied by the office, paying for their purchase. The funds received from the employee’s account then move to the office account which will then “fund” the purchase of the next product delivery. These systems are relatively inexpensive. (More to come on this in a subsequent article.) The Small Office The other opportunity yet to be fully exploited by OCS operators is the small office. Not to say the 5-20 person office has no coffee, water, or other products…. most do. But much of it is self-sourced from the big box store, supermarket, or possibly bought online. I believe that an operator can develop a very workable business model to sell to the small office either via e-commerce or creating small office routes built around a 4-week delivery cycle with a complete bundle of offerings that would include a moderate asset cost brewed beverage solution, filtered or bottled water, and even a snack assortment. (More to come on this growing segment.) There are more than 4 million offices with less than 20 employees! Decisions As an operator, my company was driven by three primary Key Performance Indicators….Customer Retention; Growing Same Account Profits; Adding Profitable New Business. I believe that today’s market dynamics sets the stage for a progressive, service-focused, customer-centric operator to build, or expand into, a very, very healthy OCS operation like never before. And with better KPIs, driven mainly by significantly increased same account sales and profits, should one decide to sell the business at some point, the return on your efforts will be significant. Until next time. Ken
Ken is President of Ken Shea and Associates and also serves as V.P. of Coffee Service for G&J Marketing and Sales
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WHAT ARE THE BIGGEST ISSUES IMPACTING THE SPECIALTY COFFEE INDUSTRY? Find out in these two-part, ONLINE and ON-DEMAND CoffeeTalk Media Webinar Panel Discussions! 20 YEARS IN THE SPECIALTY COFFEE BUSINESS WHAT HAS CHANGED? Join CoffeeTalk Publisher, Kerri Goodman and a small group of their featured columnists in an open discussion on the current general state of the specialty coffee business and see what trends have had the biggest impact on the industry over the past 20 years. Kerri Goodman - Founder & Publisher, CoffeeTalk Media Libby Smith - Managing Editor, CoffeeTalk Magazine Sherri Johns - Director of Training & Events, Alliance for Coffee Excellence Ed Arvidson - President, Coffee Business School of the Cascades Dan Cox - Owner and President, Coffee Enterprises Anna Gutierrez - National Sales Consultant, Barista Twenty Two
WHAT WILL THE SPECIALTY COFFEE INDUSTRY LOOK LIKE IN THE NEXT 20-YEARS? In our last panel discussed how the specialty coffee industry has changed over the past 20 years, and where we are today. In continuation of the discussion, CoffeeTalk Publisher, Kerri Goodman sits down with a group of featured columnists to examine trends moving forward and consider some of the pitfalls the industry needs to deal with in the next 20 years. Kerri Goodman - Founder & Publisher, CoffeeTalk Media Dan Cox – President, Coffee Enterprises & Coffee Analysts Randy Anderson – President, caffrios Cold Brew Coffee Solutions Stephen Schulman - Senior VP, Specialty Coffee Lacas/Dallis Bros. Coffee Marty Curtis - Founder Combustion Systems Sales & Service
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Java Jacket provides the best insulation of all sleeves on the market. Protects customers from hot or cold to-go beverages, and provides a more grippable surface than other coffee sleeves.
We offer the largest selection of vacuum sealed containers in the world! We have developed a patented vacuum open and close system that acts exactly the same way as a one-way degassing valve, allowing natural gasses to escape without allowing oxygen in. Perfect for Coffee & Tea, guaranteeing freshness & flavor. Simplicity that works.
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Improved Brush Box for Convenient Cleaning While Saving Time and Money Cablevey Conveyors has improved the convenience of cleaning their tubular drag conveyors with the introduction of the side access brush box. The brush box is used to reduce material buildup on cable and discs. As the cable and discs are being pulled through brush bristles located inside the box, the built up material is loosened and allowed to exit the system through the bottom of the brush box. Improvements have made it possible to enter the brush box from the side, rather than the top, allowing for easier disassembly and cleaning by maintenance personnel, especially with low ceilings and other overhead obstructions above. This reduces maintenance time and labor costs. The brush box comes assembled and is ready to be installed into the system using couplers to attach it to other system components. For more information please visit our website at cablevey.com/ side-access-brush-box.
began in Cuba in 1870. With deep roots in coffee growing, the Gaviña family escaped Castro’s Cuba and settled in Los Angeles and began roasting, packing and selling Café Gaviña espresso. The next fifty years would see the expansion of their operation from 1100 sq. ft. to their current 240,000 sq. ft. eco-friendly facility employing over 250 people and servicing mom & pop to multi-national accounts. In honor of the 50th Anniversary, Gaviña Coffee has created a special Anniversary Blend using beans grown on the award-winning Carmen Estate in Panamá and roasted in Los Angeles. Flavor notes in the new blend include Caramel, Honey, and Ripe Fruit with a Chocolaty finish. Retail sales of the new blend begin June 19, 2017. To learn more about Gaviña Coffee and the Gaviña family, please visit www.gavina.com.
Patented PostMix Nitro Cold Brew Coffee Solution The wait is over! JoeTap, Inc. and Micro Matic announce the release of the NSF Certified JoeTap Barista; the first and only Flexicon Tip-Tite® post-mix nitro cold brew coffee Dumper for Mobile Bins dispense solution for high TIP-TITE® Hydraulic volume service. Nitro cold brew Dumper from tapped from a keg has been Flexicon discharges around for years. Now, JoeTap bulk materials has collaborated with Micro from mobile bins at Matic on a new solution that controlled rates into downstream process equipment uses bag-in-box cold brew coffee —the JoeTap Barista. The Barista dust-free. With lid open, the bin is rolled into position over a leads the way as the de facto lifting tongue centered inboard post-mix solution for dispensing cold brew concentrates. The of the casters. Side bracing Barista post-mixes and then prevents lateral movement of nitrogenates the concentrate and the bin during tipping. After securing the bin in place with a water at ratios from 3:1 to 22:1. safety-interlocked door, a pair of Lightweight and easy to change, hydraulic cylinders raises the bin a one-gallon BiB can deliver vertically, seating its rim against up to 300 servings of nitro cold brew with no lag time in between the underside of a rectangular pours with consistent results discharge hood, then elevates from start to finish. The Barista and tips the assembly, causing the discharge spout on the hood needs only water (plumbed filtered water), power (110v to mate with a gasketed inlet ring fitted to the lid of receiving outlet) and coffee product (BiB cold brew). A nitrogen generator hoppers, storage vessels or integrated in the unit provides process equipment. Opening the nitrogen. The JoeTap Barista, a pneumatically-actuated slide is available now from JoeTap / gate valve at the spout outlet Micro Matic. Email info@joetap. allows dust-free discharge at controlled rates. The unit can be com for more information. sized to bins up to 48 in. (1220 mm) on a side, and up to 44 in. Celebrating Our 20th (1117 mm) in height. For further Year! We are information, email sales@ excited flexicon.com. to be celebrating our twentieth A 50th Anniversary, 140 year of providing design, Years in the Making manufacturing, service, and Gaviña Coffee is support to the analytical pleased to announce instrumentation industry. the celebration of their JAVAYLTICS continues to be 50th Anniversary of one of our most successful roasting in Los Angeles product lines. We have truly - a journey which
enjoyed working in this industry and look forward to by providing many more quality control products to the coffee industry for the next twenty years! JAVALYTICS™ Analytical Instrumentation for Better Coffee. For more information, please call 888-349-3847 and visit www.javalytics.com.
The Rainforest Alliance and UTZ Merge, Forming New, Stronger Organization The Rainforest Alliance and UTZ, two of the world’s leading sustainability certification organizations, have announced their intention to merge later this year. The new High Speed Rotary Single organization, to be named the Serve Pod Filling and Rainforest Alliance, will tackle Sealing Machine environmental and social issues Eastsign Single around the world, including Serve Pod Filling climate change, deforestation, and Sealing poverty and unsustainable Machine is suitable farming. It will create a single for various granule, global certification standard that powder and liquid, will simplify certification for such as coffee, milk farmers and empower companies powder, soybean to build more responsible supply powder, tea, tea powder, instant chains, more efficiently. It will powder, yogurt and other food also work to expand advocacy materials. Max Speed: 50cups efforts and through new per minute. Applicable capsule: partnerships ensure conservation Compatible Nespresso, Lavazza of entire landscapes in priority blue or point, Pod, K-Cup, regions. The future sustainability K-Shot, One CUP or custom standard, a single certification fitting container. For more program known as the information, contact Andy Rainforest Alliance standard, will Wang, email@example.com utilize the respective strengths of the current Sustainable Quality, Flavor and Agriculture Network and UTZ Consistency… It’s Hard standards while creating a single to Beat The Innovative auditing process for certificate Curtis® Thermopro™ holders. By combining forces, Brewing System the two NGOs will provide a With advanced leading platform to help increase Generation Four demand for responsibly sourced (G4) technology products. For more information, and state-ofemail firstname.lastname@example.org. the-art servers, Curtis ThermoPro New illy Steeping Packs makes Golden Cup Add to Cold Brew Coffee quality, coffee batch Offerings for Cafés, brewing instantly easy. This Restaurants and Hotels system quickly brews gourmet As cold brew continues coffee into 1 gallon high-tech to rapidly grow in ThermoPro vacuum-insulated, popularity, illy caffè, stainless steel servers. Not the third-generation only does it provide precise family-owned coffee control over all critical brewing company from Trieste, Italy, functions, it keeps coffee quality committed to offering the and flavor consistently delicious. highest quality, most ethically The ThermoPro server offers sourced coffee to the world, unsurpassed heat retention and announces its new cold brew keeps coffee fresh and at the coffee steeping pack for perfect serving temperature distinguished hotels, restaurants with no need for additional and cafés. Using only single heat. This type of system is ideal origin Arabica beans from Brazil, for restaurants, hotel lobbies, an ingredient in illy’s signature C-Stores, or applications where blend that is ideal for cold brew’s several different coffee roasts flavor profile, the new illy cold need to be merchandised. brew packs contain 175 grams Available in both striking sky of coffee, expertly ground and white and black finishes and in precisely measured for cold brew single or twin brew head models, preparation, and innovated with the innovative design delivers illy’s expertise and-industry user-friendly operation. Colorleading quality standards. Each coded buttons and an intuitive filter bag, designed for ease of LCD display with scroll-through steeping, with zero waste and programming provide easymess during a 12-hour brewing to-use digital control. Wilbur process, comes in a high-quality Curtis, is a family-owned vacuum-sealed pack to maintain company with a 75-year heritage ultimate freshness. Average of commercial coffee leadership. anticipated yield per pack is 2.2 For more information, call 800- litres of cold brewed coffee. For 421-6150. www.wilburcurtis. more information, email adam. com. email@example.com. August 2017
Emmet Mead joins Fres-co System USA, Inc., as Inside Sales Rep for Coffee Market Emmet Mead has joined Fres-co System USA, Inc., in the role of Inside Sales Representative, with primary responsibilities in growing and maintaining the company’s industry-leading customer base, and also building and maintaining relationships with customers. Mead is also responsible for the coffee stock bag program and working with new customers on their premade bag, degassing valves and form & fill equipment needs. He reports to Kevin McRae, Fres-co’s Director of Sales. Prior to joining Fres-co, Mead was a Business Account Executive with Comcast Corporation, where he successfully grew the cable giant’s customer base through prospecting, sales development, and establishing strong corporate ties with small- and mediumsized business customers. Mead holds a Bachelor’s degree in Marketing from Bloomsburg University. He resides in Chalfont, PA. Please visit, www. fresco.com. New Waterlogic High Capacity Bottleless Cooler The new WL290 delivers superb quality water and satisfies the higher volume needs for cold and hot water in the most demanding environments. This high performance model guarantees quality water all day long. Waterlogic brings you the quality you have come to expect, now with high volume cold water. The WL290 features a recirculating cold water system that passes by an in-tank ultraviolet light multiple times every hour to maintain the microbiological purity of the water. The smart design of the WL290 also includes a GAC (granular activated carbon) filter inside the cold reservoir to provide ongoing protection from taste and odors. This premium dispenser is recommended for high traffic working environments or where cold water is in high demand. The built-in diagnostics and indicator lights give you total confidence the purification and filtration systems are working properly to give you the freshest, best-tasting water. For more information, email lisa.vanwyngarden@ waterlogicusa.com.
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ARCHIVED EVENTS INCLUDE MAY 2017
• Molding Your Staff into All-Star Baristas
• 20 Years In The Specialty Coffee Business - What Has Changed?
• Why Quality Is A Key Driver For Coffee Sustainability
• Handling Hot Coffee: Preventing Spills, Burns and Lawsuits
• Coffee Business; The Art & Finance
• Signature Drinks - Powering Up Your Profits
• Growing Coffee in Nepal - A Promising Future with Many Hurdles
• Best Practices in Coffee Bar Design
• Consumers’ Coffee Passion: What They Need To Know About Specialty Coffee • What Will the Specialty Coffee Industry Look Like In 20-Years?
Advertisers Index Company......................................... Phone.............Web..................Page Add a Scoop Supplements....................................(415) 382-6535...... addascoop.com.................. 21 Brewista........................................................................(307) 222-6086..... mybrewista.com.................19 Buhler Inc.....................................................................(905) 754-8389..... buhlergroup.com............... 15 Cablevey Conveyors.................................................(641) 673-8451....... cablevey.com....................... 15 Coffee Holding Company......................................(800) 458-2233..... coffeeholding.com..............2 Colombian Coffee Growers Federation............(305) 532-7950........................................................... .........................................................................................federaciondecafeteros.org................................. 23 Costellini's....................................................................(877) 889-1866...... costellinis.com.....................19 Curtis..............................................................................(800) 421-6150...... wilburcurtis.com...................7 Don Pablo Coffee Roasting Company..............(305) 249-5628..... cafedonpablo.com............ 21 Eastsign Foods (Quzhou) Co., Ltd.....................see web..................... eastsign.com........................19 Flexicon Corporation...............................................(610) 814-2400...... flexicon.com......................... 12 Fres-co System USA, Inc........................................(215) 799-8032...... fresco.com............................. 9 Grey Fox Pottery.......................................................(612) 767-7407....... greyfoxpottery.com..........19 iFill Cup | United Home Technologies, LLC.....(360) 574-7737...... unitedhometech.com.......19 International Coffee Consulting Group.............(818) 347-1378.............................................................. .........................................................................................intlcoffeeconsulting.com..................................... 21 Java House..................................................................(317) 566-9750...... heartlandfpg.com................3 Java Jacket..................................................................(800) 208-4128..... javajacket.com.............. 17, 19 Javalytics By Madison Instruments, Inc............(888) 349-3847..... javalytics.com......................19 JoeTap...........................................................................(855) 456-3827..... joetap.com............................ 11 Mukilteo Coffee Roasters.......................................(888) 890-9800.... mukilteocoffee.com.......... 21
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WHO WE ARE Phone: 206.686.7378, see extensions below Publisher / Advertising Inquiries Kerri Goodman, ext 1 firstname.lastname@example.org Director Educational Publishing Shane Gillispie, email@example.com Managing Editor Libby Smith, ext 8 firstname.lastname@example.org Ad Art & Accounting Laurie Veatch, ext 4 email@example.com
Primera Technology, Inc.........................................(800) 797-2772..... primeralabel.com............... 21 Shore Measuring Systems......................................(800) 837-0863.... moisturetesters.com......... 21 Sonofresco LLC..........................................................(360) 757-2800..... sonofresco.com................... 11 State Farm Insurance...............................................see web..................... st8.fm/bizinsurance.com..5 Texpak Inc | Scolari Engineering.........................(856) 988-5533..... scolarieng.com................... 24 The Coffee Trust........................................................(505) 670-9783..... thecoffeetrust.org............. 21 Tightpac America Inc..............................................(888) 428-4448.... tightvac.com........................19 UPAC2 INC...................................................................(612) 518-2240....... upac2.com............................. 4 Vessel Drinkware.......................................................(855) 833-7735...... vesseldrinkware.com........ 17 Walker Coffee Trading, LP.....................................(713) 780-7050...... walkercoffee.com................ 4
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IWCA 5th International Convention, Puebla, Mexico
Roasters Guild Retreat, Buford, Georgia USA
2017 US AeroPress Championship, Seattle WA, USA
Pacific Coast Coffee Association's 86th Annual Convention, Santa Barbara, CA USA
Coffee & Chocolate Expo, Orlando FL USA
Global Coffee Sustainability Conference 2017, Geneva Switzerland
SCA Spain Roasting Championship, Barcelona Spain
Fundacion iecafe Encuentros Cafeteros, Barcelona Spain
II Cup Tasters Championship, Barcelona Spain
Coffee Fest Portland, Portland OR USA
NAMA Coffee Tea & Water, Gaylord Texan Resort & Convention Center, Grapevine, Texas, USA
Seoul World Barista Championship, Seoul, South Korea
5th World Tea & Coffee Expo 2017, Mumbai India
1st ASEAN Coffee Industry Development Conference 2018, Chiang Mai Thailand
Copy Editor Mark Moser, ext 9 firstname.lastname@example.org Web Design Justin Goodman, ext 6 email@example.com Print Design Marcus Fellbaum, ext 5 firstname.lastname@example.org Mailing Info Mail: HNCT, LLC, 25525 77th Ave SW Vashon, WA 98070 Phone: 206.686.7378 Fax: 866.373.0392 Web: www.coffeetalk.com Disclaimer CoffeeTalk does not assume the responsibility for validity of claims made for advertised products and services. We reserve the right to reject any advertising. Although we support copyrights and trademarks, we generally do not include copyright and trademark symbols in our news stories and columns. CoffeeTalk considers its sources reliable and verifies as much data as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Postmaster: Send address changes to HNCT, LLC, 25525 77th Ave SW, Vashon, WA 98070
Subscription: The cost of a subscription in the U.S. is $47.50 per year; in Canada, the cost is $72.00. Free to qualified industry professionals. Non-qualified requests may be rejected. Publisher reserves the right to limit the number of free subscriptions. For subscription inquiries, please call 206.686.7378 x1 or subscribe online at www.CoffeeTalk.com. Copyright ÂŠ 2017, HNCT, LLC, All Rights Reserved