The 10 Rules for Success with Finished Products in Europe

Jeroen KruftAmigos International/ CBI consultant

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1. HIGH INTRINSIC QUALITY

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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

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‘Harvested by Women’- Boyd Coffee Company – March 2014

Centre for the Promotion of Imports from developing countries |

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FREE TO USE: download application form at: http://www.amigos-international.org/certifications/pico-standards/

‘P.I.C.O.’

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

Conventional coffee

Value division pack of supermarket coffee (Roodmerk)

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100%

Tow ard the developing economy Tow ard the w estern economy

Source: Max Havelaar foundation

Only 20% goes toward the southern country

Fair trade coffee: provides a better price for farmers… a good start!

Value division pack of Fair trade coffee

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Tow ard the developing economy Tow ard the w estern economy

Source: Max Havelaar foundation

35% goes toward the southern country

Escoffee: fair trade price, organic certification and local processing!

Value division pack of Escoffee

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Tow ard the developing economy Tow ard the w estern economy

Source: Escoffee calculations; available to anyone on request.

53% goes toward the southern country

CAREFUL WITH GREENWASHING! NESTLÉ (KIT KAT)

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4. (Other) UNIQUE SELLING POINTS

Ecological Transport

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Ecological Packaging

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Ecological Packaging

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Origen / traceability

Centre for the Promotion of Imports from developing countries |

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Innovative tastes / structures

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Healthier

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Healthier

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Environment

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Ambassadors

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Summary possible USP’s

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- 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

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DOMESTIC SALES

- Experience (sales of retail productss very different from bulk sales!)

- Product development- Get working capital

6. COMPETITIVE PRICE

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Pricing

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

between!

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Margins

• Importer / distributor (20 - 30%) +• 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, 2010

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7. LONG TERM COMMITMENT

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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

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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

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LOGISTICS

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

10. COMUNICATION

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COMMUNICATION AND PROMOTION

- Know your languages- Email: respond within 2 days max!- Help your client at European trade fairs- Give your client relevant and quality promotional

toos and information

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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

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RULE DEFICIENCY SOLUTION ACTION TIME

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