Adventures Coffee
Adventures Coffee is a United States-based company involved in the distribution, marketing, and sale of African made coffee. The key strategic advantage of the company is in the distribution of coffee. It has established strong alliances with several distributors and coffee brokers in the US.
The company currently markets, and sales three brands of 100% Arabica coffee to Publix’s 224 supermarket retail stores in Georgia, South Carolina, Alabama and Tennessee. 2005 sales revenue from Publix was $ 85,000.00. Its coffee is produced by its parent company, Kwanza Sarl, located in Bafang, Cameroon. As part of its phase 1 market penetration strategy, Adventures Coffee has immediate plans to extend its market share in the South East of the US, by supplying its coffee brands to worldwide renowned retail store Wal-Mart. Over the next two years, the company is projecting additional sales of $ 6.9 millions and net cash balance of $ 5.6 millions with Wal-Mart sales alone.
Together with Kwanza Sarl, Adventures Coffee will contribute to the Millennium Development Goals of eradicating extreme poverty and hunger, insuring environmental sustainability, and developing a global partnership for development.
The Business
Kwanza Sarl manages coffee sourcing, roasting, processing, and packaging in Cameroon. Adventures Coffee, LLC manages the distribution, marketing and Sales in the United States. Through this forward integration approach, Kwanza Sarl acquires coffee directly from growers at fair price, eliminating middlemen, and increasing coffee grower’s profits. Roasting, processing, and packaging are performed by Kwanza using top of the art equipments and facilities. Adventures coffee adsorbs the cost of freight, and enjoys the free import duties through AGOA. The management of Adventures Coffee in the US insures the distribution, marketing and sales of the coffee. Adventures Coffee works with several brokers including Alliances Sales & Marketing, and has partnership with several distributors in the US and currently manages the distribution of its coffee brand though Gourmet Award Foods.
Wal-Mart has shown great interests to carry Adventures Coffee brand in its 296 super centers in Alabama, Georgia, South Carolina, and Tennessee. The company has strong projections for the next three years with sales in the Wal-Mart stores. Three (3) millions bags of coffee are expected to be sold during the first year. Gross margin of $ 2.2 millions and EBIT of $ 2 millions are projected during the first year of operations.
Our customers are daily gourmet coffee drinkers, who comprise 12 percent of the US population (about 35 millions people), have a high average annual income -- $68,400 -- and regularly purchase gourmet coffee outside of home. Supermarkets/grocery stores are their preferred destination for gourmet coffee purchases (36 percent). Adventures Coffee expects to capitalize on both its very competitive price and the African origin of its coffee beans that are planted among plantains and other native tree species, which provide shade and maintain freshness.
Adventures coffee will use a combination of store sampling, and public relation firms to promote its coffee brand. During store sampling, prospective customers will receive our marketing kit that includes product samples, coupons, and African art piece. We’ve already engaged Kohnstamm Communications for visibility within print and the broadcast media that will allow the company to build its brand and increase sales.
Starbucks, Proctor and Gamble, Seattle Best, and Peets are the major competitors of Adventures Coffee in Wal-Mart. Contrary to those competitors, Adventures Coffee will enjoy the advantage of commercializing the only African coffee in Wal-Mart stores in the South East of the US. African coffee has established the reputation of luxury coffee, with Kenya AA and Tanzania leading in gourmet coffee in the US market, placing it ahead of coffee originating from South America where most of our competitors provision themselves. In addition, Adventures Coffee will provide the best price of gourmet coffee at Wal-Mart stores. The company believes that this combination of African origin and price will better position its coffee and make it very competitive.
In its phase one implementation strategy, Kwanza/Adventures Coffee has partnered with Torrecam, a company located in Cameroon and specialized in the roasting, processing, and packaging of our coffee. TORRECAM has been in operation for more than 20 years. Kwanza/Adventures Coffee has optimized the TORRECAM production line by adding new machines capable of producing to the US/European standard. Kwanza has trained the workers at Torrecam to use our Gas-Flush-Sealing machines aimed at keeping the freshness of coffee for export.
Kwanza/Adventuress Coffee has been kept alive only with owner’s equity funding. The company has no institutional debt. This concept has been kept alive by sheer force of will and personal sacrifices. Kwanza / Adventuress Coffee needs fresh financing to rise to the challenge of its mission. For the Wal-Mart business opportunity, the company has projected cash flow requirements of 403,957 euro for the first 4 months of production and operations. Adventuress Coffee has approached several institutions opened to joint venture capitals and direct loans.
Development
Over the next three years, Kwanza/Adventuress Coffee will revitalize the economy of rural Cameroon, whose inhabitants rely mostly of income from agriculture. Moreover, the company will be a major precursor of indirect labor generated by the promotion of African artifacts, while focusing on environmental considerations. Kwanza/Adventuress Coffee expects to extend these social and environmental contributions to regional countries in Central African as its coffee operations grow, generating the need for more sources of green coffee, and processing.
Kwanza/Adventuress Coffee is already working with coffee growers in rural Cameroon. The company buys coffee at fair price and contributes to increasing the leaving standards in many rural areas. Today, we are sourcing coffee beans from 15 farmers. As our market share grows, we expect to buy from about 500 farmers, thus increasing their productivity and profit. Since our marketing plan also uses African artifacts, we expect to create additional indirect labor in this area. And to encourage preservation of rainforest, Adventuress Coffee procures only artifacts made from clay (and not wood) and burned in environment sound ovens. The ovens are specially made and only use wood residues.





