Estate Coffee Holdings Corp. has a clearly defined goal of becoming a full spectrum global coffee industry dynamo, and disclosed yesterday details regarding future strategies to vertically integrate and tighten the Company’s structure by taking a direct ownership role in every aspect of the workflow, from bean production to buying, exporting, processing, roasting and direct sales to customers.
This transportable business model makes the growth strategy locale virtually infinite, allowing a socially responsible and logistically viable coffee company to spring up in any region where fine coffee can be grown, and the retention of additional margins (40-100%) throughout the model’s architecture.
For many people around the world, coffee is a vital part of life, making the global specialty and gourmet coffee market a multi-billion dollar industry and coffee the commodity with the second largest dollar volume for two decades in a row.
Booming demand in Chinese markets for the fine Arabica coffee so beloved throughout the western world have prompted ECHD to acquire a 20% interest in one of China’s leading specialty coffee companies, DTS8 Coffee (Shanghai) Co., Ltd., which has artisan roasting facilities in Shanghai and marketing capacity hitting sales targets throughout Asia, Australia and North America.
With 1.3 billion potential coffee drinkers and limited competition for an underserved yet rapidly growing consumer base, China represents significant development opportunities which ECHD can translate into ROI for the Company’s shareholders.
The China focus is an example of the comprehensive strategy to develop joint ventures and complete acquisitions in multiple countries in order to develop a robust and highly efficient nodal network of business units.
Global demand for the sort of fine Arabica coffee beans grown high up in mountainous semi-tropical climactic zones in which ECHD specializes is cyclically driving a market where this kind of efficient business model can leverage tight integration with every step of the process, yielding $30/lb. sales on under $3/lb. cost.