The 10 Rules for Success with Finished Products in Europe Jeroen Kruft Amigos International / CBI consultant

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1. HIGH INTRINSIC QUALITY

12 INTRINSIC QUALITY - Taste, structure, etc. - Coffee: grinding spectrum - Appearance (coffee: beans!) - Maintain freshness by good packaging

2. ATRACTIVE PACKAGING

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3. CERTIFICATION(S) Certificaciones

B2B and B2C Certifications 21

‘Harvested by Women’ - Boyd Coffee Company – March 2014 Centre for the Promotion of Imports from developing countries | 22

23 FREE TO USE: download application form at: international.org/certifications/pico-standards/ ‘P.I.C.O.’

24 Marketing ‘P.I.C.O.’ Coffee as ‘Fair trade 2.0’

Conventional coffee Source: Max Havelaar foundation Only 20% goes toward the southern country

Fair trade coffee: provides a better price for farmers… a good start! Source: Max Havelaar foundation 35% goes toward the southern country

Escoffee: fair trade price, organic certification and local processing! Source: Escoffee calculations; available to anyone on request. 53% goes toward the southern country

CAREFUL WITH GREENWASHING! NESTLÉ (KIT KAT) 28

4. (Other) UNIQUE SELLING POINTS

Ecological Transport 30

Ecological Packaging 31

Ecological Packaging 32

Origen / traceability Centre for the Promotion of Imports from developing countries | 33

Innovative tastes / structures 34

Healthier 35

Healthier 36

Environment 37

Ambassadors 38

Summary possible USP’s 39 -ENVIRONMENT (BIODEGRADABLE PACKAGING, PLANTING TREES, CO2 NEURTRAL, ORGANIC, ETC.) -SOCIAL (CHILDREN, EDUCATION, FAIRTRADE, ETC) -HEALTH (SUPERFOODS, RAW, LOW FAT/SUGAR, ETC.) -TASTE (NEW FORMULAS) -NOSTALGIA (SAILSHIPS, ARTISAN/HAND-MADE, ETC.)

5. DOMESTIC SALES

41 DOMESTIC SALES -Experience (sales of retail productss very different from bulk sales!) -Product development -Get working capital

6. COMPETITIVE PRICE

43 Pricing Make a good cost price calculation Get reference prices in target markets See if there is enough margin for the chain in between!

44 Margins Importer / distributor ( %) + Wholesaler (20 – 30%) + Shop (25 – 45%) + VAT (different in various EU countries) Reference prices coffee (250gr): Supermarkets: EUR 3,50  FOB $ 2.00 max Organic shops: EUR 5,00  FOB $ 3.00 max Gourmet shops/dept. stores: EUR 6,50  FOB $ 4.00 max

Centre for the Promotion of Imports from developing countries | May 27,

7. LONG TERM COMMITMENT

47 LONG TERM COMMITMENT -How to manage shipping small quantities in the beginning? -How to manage promotion costs? -At what point do you reach BREAK-EVEN?

8. STRATEGIC PARTNER

49 STRATEGIC PARTNER -Get (a) person(s) that can promote your coffee in Europe – preferably a European (culture, language) -Consider giving your strategic partner participation in the company (shares)

9. LOGISTICS

51 LOGISTICS -Just in time -Lead time? -Best Before dates: Wholesaler needs 1 year + Shop needs 6 months +

10. COMUNICATION

53 COMMUNICATION AND PROMOTION -Know your languages - respond within 2 days max! -Help your client at European trade fairs -Give your client relevant and quality promotional toos and information

54 Support for your client: -Professional brochures -High resolution photos -Videos -Multi-language website -Technical spec sheets -Free samples

EXERCISE: MAKING AN ACTION PLAN FOR YOUR COMPANY

56 RULEDEFICIENCYSOLUTIONACTIONTIME 1.HIGH INTRINSIC QUALITY 2. ATRACTIVE PACKAGING 3. CERTIFICATIONS 4. USP’S 5. DOMESTIC SALES 6. COMPETITIVE PRICE 7. LONG TERM COMMITMENT 8. STRATEGIC PARTNER 9. LOGISTICS 10. COMUNICATION/ PROMOTION