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Finding you new buyers

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How can we help?

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We have built up a rich network of buyers. This is something we have worked on organically during our time working in coffee.

These are qualified buyers who we have worked with on our auctions. We continue to develop our network as we move forward with our plans to connect buyers and producers. 

We have a wide range of skills available to us to market what we do and the coffee we have available. This is because we understand how modern marketing and promotion works in the modern world. We understand how to present your coffee to our buyers and to follow up with them, reminding them with a number of touchpoints what we have available. We also look to develop relationships ourselves with buyers. And we do this by adding value to their business. We enjoy talking to them and meeting them. We are friendly and approachable and we take an interest in how other people work. 

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How can we help?

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We don’t cut corners, we listen and we take on board ideas. We solve problems and we use those solutions to make our service better for everyone. 

We take time to get to know buyers. We work them on a direct trade basis as well as through auctions. Some of them understand the auction is a first step in discovering new sources of coffee; it is the first step in creating a long and trusting relationship.

The world is changing. Many producers recognise they would like to broaden their appeal. They also see online trade as a constantly changing and developing medium in which to do business.  We have relationships with buyers all over the world. We can help your coffee in to places you may not have sold it before. This gives the producer and the buyer a competitive edge.

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What do we do to find buyers for you?

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  • We find buyers for your coffee.
  • We promote your coffee and your farm.
  • A showcase of your coffee, your farm, your production methods.
  • A means of discovering what your coffee is worth.
  • Tasting and cupping profiles.
  • The opportunity to create direct trade with buyers.
  • Create ongoing contracts and relationships.
  • Provide producers with a sales mix outside their usual channels.

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What works? What does not work?

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We have found that there is no silver bullet that works across all types of coffee and sale.

  • We find buyers are not interested in coffee with a score lower than 85
  • Buyers are really concerned about how to ship the coffee from origin. Coffee that has been landed in USA or Europe can be easier to sell. We have relationships with logistics companies; we can organise the movement of coffee and containers.
  • Ideally buyers will buy container loads, but this is not always going to happen the first time a new buyer works with a new producer. Buyers like to make test purchases first, to make sure the coffee is genuine, pre-shipment samples are truly representative of defect rates and the sale is generally pain fee.
  • For the better and more expensive sale, buyers like samples. It is often the difference between a sale being agreed and not being agreed.
  • Free samples, whilst expensive for the producer, do work. It reduces the barrier to purchase and can mean that buyers purchase greater volumes.
  • The better the information we have for your coffee, the more we can pass on to the buyers. The easier it is for them to picture their own marketing and promotional efforts the more likely they are to buy the coffee.
  • Is the coffee easily traceable? Forward thinking buyers want to know where the coffee has come from every step of the way. They want to buy direct and they want to shorten the supply chain. The more accountable farmers methods are, the more this help.
  • Shorter supply chains mean more of the sale price for the coffee can be invested in future development of the coffee crops.
  • Providing a marketing package for the buyers; to make their job easier and therefore more likely to buy the coffee from you. If they feel they have a route to market they are more likely to buy the coffee. Tell us why your coffee is unique?

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Creating a virtuous circle.

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Amongst other things, there are two interesting things we are common to most, if not all businesses. One is return & recurring trade and the other is a sales mix. 

 

These types of business are created through the fostering of a wide range of relationships. A business will never know when a contact or a relationship will develop. The starting point for this, in any case, is making sure those you wish to work with know about in the first place. Once the conversation has been opened, there is potential for a sale to be made. If that time is not now, it may be in the future.

 

We have found our auctions have generated return trade. The introductions we have made, have led to future sales. Once a sale for a smaller amount has been made the opportunity to come back and make a larger one is greater. We have seen this happening several times during the 2020 harvest. 

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Success Stories

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Measuring Success

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There are a number of ways to measure success from our point of view. We operate in both the auction and direct space. They go hand in hand. One can lead to the other. 

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We believe success can be measured in the sales we achieve for our producers and the establishment of longer term relationships. So this might come in many different guises

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  • Running an auction which results in sales for the producer.
  • Finding buyers who are interested in buying coffee at sustainable levels. Introducing buyers to producers who will establish a ‘test sale’ first and then this leads to further purchases in the same season.
  • Introducing buyers to producers through auctions and then seeing the two talking to each other the following year to agree return business.
  • Promoting and marketing the producers methods to our audience to raise their profile.
  • A farmer agrees a sale and is paid in a much shorter time frame from other forms of trade.

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Repeat Sales One Year On

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We started running auctions for volume coffee during 2019, and we have learnt a lot. We sold 9 tonnes of coffee during those auction. Now 12 months later we are seeing where the real value is for producers.One of the trades fell through, and we have worked with both the producer and the buyer to rectify those and look to consolidate with a sale this season. 

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Of the remaining sales that did go through, we now have 4 buyers who have returned directly to the producer and have been negotiating repeat purchases. Some of these sales have been agreed with others still in negotiation. What is really interesting, is the buyers are negotiating at larger volumes than those agreed in 2019 and the prices are also higher than last year. Some of this is reflected in the cherry prices being higher in some origins. However it also represents a strengthening of trust between the two parties. 

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Shipping & Consolidation

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Receiving your coffee

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New buyers sometime ask how they will receive their money. Another common question concerns contracting and how they can be certain they will receive what they have paid for.

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The shipping element of purchasing coffee can be extremely complex.
Ideally you would buy a container of coffee, agree your contract and the container is shipped and arrives at the port of your choice.

However, it is not always that easy. It depends upon how much you are buying or whether you need to consolidate. It also depends upon the flexibility of the exporter. If you are buying less than a full container (LCL) it can be more challenging. For really small microlot purchases it is worth considering airfreight.

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Consolidation

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The more economic way to get a LCL purchase to you is to consolidate it with another buyer who has spare capacity. Or to consolidate it with a number of purchases you have made with a variety of buyers.  

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Typically for an auction containing many different purchases from similar sources we can help with the shipping. We can land the coffee for you in Europe or the USA and then distribute it onwards to your own warehouse. We work with a logistics partner, Vollers, to achieve this. When this is the case the contracting is slightly different, but not a barrier to making the sale a reality.

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Landed Coffee & Spot Purchases

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Once coffee has landed, things get easier. It means it can be dispatched to anywhere in the world. It is considered more flexible. This may mean it is in a warehouse in USA, Europe or perhaps in Dubai. The distribution networks are stronger from these hub areas. Also logistics companies can then work with their own network to make the onward dispatch cost effective for everyone.  

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Sometimes we auction coffee from origin, sometimes we auction it as Spot. This means it is auctioned or sold from the warehouse. The shipping cost is only from the landed warehouse. 

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So, what does this mean? It means we can help you navigate the challenges in obtaining your coffee once you have bought it. We have a good knowledge of the process, we know the questions to ask and we have contacts who can help you as a new buyer to make this work. We do create the direct trade and that gives you control over the purchase of the coffee, but we don’t drop you and leave you to it. We know how to get this done for you. 

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How Do we Promote and Create Direct Trade?

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Accessing new and interesting coffees

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We work with many farmers who want to create their own routes to market. They have established places to sell their coffee.  However it is important for any business to have a mix of ways to sell their product. Traditional means of sale may be reliable, but may not be sustainable. A long recurring contract is useful, but is it sustainable? Does it pay quickly? Many producers have relationships with importers and organisations who provide finance and the development of the crops. 

Through our work promoting the auctions running on our auction platform we speak to producers all the time. They all want to expand the opportunities  available to them. However, for a variety of reasons, it is not always the best or quickest way to sell the coffee.

An auction provides a wide audience a window into a range of available coffee. But this is also the case for direct trade. The price discovery mechanism is different but outcomes can be the same; new relationships are created. If all goes well, repeat business can be agreed the next year. 

How we work with direct sale:

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  • We have an offer list which we update as we meet farmers, coffee are removed as they are sold. Coffee is added as we find producers we want to work with.
  • We circulate the list to our buyers.
  • We discuss the quality of coffees with the buyers: Its suitability, volume and price.
  • We also talk to them about shipping and develop an understanding what will work for both the buyer and the seller.
  • We arrange for samples to be sent direct from the producer to the buyer.
  • Once the quality of the coffee is understood we usually agree a FOB price on the farmers behalf.
  • We do this in a way that suits everyone. We have already agreed reasonable margins on which to base the discussions based upon volume.
  • We then introduce the buyer to the seller who agree the contracts and other details, such as shipping.
  • We can also help the buyer with payments if they are nervous and want to make sure the money they invest in the coffee reaches the farmer. Sometimes this is key to a deal being agreed. It is valuable for both parties in the sale.

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To broker these trades we charge the producer a commission (%) once the sale has been agreed. 

In the same way we operate our auctions, we put buyers and sellers together. It is a natural extension of that process. In some cases we help bring new and interesting coffees to the market for the first time. 

The size of the supply chain is reduced: buyers can buy directly from the producers. This means more of the purchase price of the coffee goes back to the farmers. This means they can re-invest in future crops and create a more sustainable environment for the development of their coffee and their workers production of the coffee.  

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How does the auction work?

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Auction Overview

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We have been operating online Auctions for since 2011. During that time we have built up a Strong understanding of what is works and what doesn’t. We have a strong set of producers who wish to work with us, and we have a good list of buyers who trust us.

We also have developed a good understanding of how we can facilitate direct trade between buyers and sellers, how the logistics might work and also the pitfalls for both buyer and sellers in coming to an agreement to buy coffee and making sure they receive the quality they bought. 

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Auction Process

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    • We display the brochure of the next auction or auctions.
    • Typically the brochure will go live 6 weeks before the auction day
    • We cup the coffee independently and provide a cupping report for each coffee on the auction platform.
    • We only auction coffee scoring 85 and above.
    • Buyers register to bid on the auction
    • We send out samples to those buyers interested in the each of the coffees.
    • The buyers cup the coffee and decide which coffees they would like to buy.
    • On the auction day, usually at 10am (London) we will start the auction. 
    • Each lot will be open for bidding and the highest bidder will win.
    • Bids are placed on the basis of an FOB purchase.
    • The buyer pays 3.5% commission for each coffee they buy. This covers the cost of running the auction on behalf of the producer.
    • Once the commission has been paid, we introduce the buyer to the seller and you agree the contract of sale for each of the coffees you have bought. 
    • At this point you can discuss the logistical side of the sale. 
    • We can help, such as providing help with payment and understanding logistics. More details can be found here. 
    • We can also help with payments and the banking side of things if as a buyer you are nervous of agreeing a sale with a producer for the first time. We want this to succeed as much as you do.

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    What does it mean for you?

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    We are aiming to provide a price discovery mechanism for producers so they can understand how the quality improvements they make in their production methods are rewarded.  

    We are going to make the auctions up with a series of different coffees each time we run them. We think we will run auctions weekly, depending upon the season and the amount of coffee available at any one time. We are not looking to sell whole containers in one go from one producer. As much as this is attractive to a farmer, this is not always something a buyer will want to do at the outset of a relationship. There is a balance to be struck between accessing new and interesting coffee, and building the relationship in a way building trust. 

    Shipping coffee in a complex business. Consolidation is the key and some countries are set up in better ways than others. Kenya for example consolidates all the time. So out may be, from the buyers perspective coffee can be won through an auction from a range of buyers and shipped in one container in a easy way, once terms have been agreed.

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    Why sell coffee in this way?

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    What are we offering?

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    We are approached by producers all of the time, asking us to provide them with access to the market. Farmers are looking to build their own relationships with buyers. It gives them more choice, more control and also helps develop a mix of channels in which to sell their coffee. It also means they can create an environment more likely to sustain their farm, improve their coffee and quality of life for those who work on producing the coffee.  

    We look to provide a reward for investing in quality.  Sustainable coffee production is good for everyone. 

    Importers, roasters and drinkers all benefit from better quality coffee. It is also true if  the supply chain is more efficient, the return on the coffee for the farmer is likely to be far higher. If we create a more efficient way to market and agree sales, the cost of entry for the producer is lower. It means farmers can invest in quality and production. If coffee producers can sustain production and be rewarded for producing good quality coffee, it is good for everyone. 

    We help you find new buyers. New ways of selling your coffee. You may well have old and established buyers and routes to market. There is no doubt these sales channels help with investment, finance and support as you grow and develop your coffee. We help you find additional routes to market, to help you find sustainable prices, and find buyers who contract in a way suiting you both.

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    What do we provide?

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    • We provide you with access to the market place.
    • There are two ways we do this:
    • We find buyers for you, though either means, and show case your coffee to them.
    • We promote your coffee, your farm & your methods.
    • We provide a means of discovering what your coffee is worth.
    • We provide coffee producers with an opportunity to create long last relationships with buyers.
    • These new relationships can run alongside existing agreements. It gives you more than place to sell to. You have choices.
    • We help you find buyers who will contract with you in a way to suite. This means you will be paid when you want to, rather than waiting for months with existing buyers.
    • We help you have choice and to not be reliant upon only way to sell your coffee.
    • You agree a contract directly with the buyer in a way best suited to you.  

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    What works? What does not?

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    • For auctions we have found coffees scoring under 85 will not sell.
    • However, this does not mean we can’t work with you. There are buyers who are happy to use quality with lowers scores for their blends. These trades can be arranged directly.
    • If we are looking to sell large volumes, if helps if there is a clear route to landing the coffee. Otherwise it is hard to gain the interest.
    • Many buyers use auctions as a means for establishing and testing a relationship with a new producer. So small volumes go a long way in this sales format.  
    • Sending out free samples to buyers is always helpful. It gains interest in both auctions and direct trades. 
    • Providing buyers with lots background information about your farm, the coffee’s traceability and other information help the buyer form a picture in their mind of how they will market the coffee to their own customers. If the buyer can feel they have a route to market they are more likely to buy the coffee.
    • Something unique is always something buyers look for. It gives them an edge. It also helps you, the producer, to gain real value for you coffee.
    • Providing good information on the coffee processing in the wet mills and your production methods.
    • Being consistent and open about pricing. Be honest and straight with the buyer when you start contracting. If you have agreed FOB, then move forward on that basis. Don’t try to add in extra costs. We have seen sales fall apart because the buyer has lost trust in the process and backed out.

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    Agreeing the Sales Contract

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    Navigating the Contracting and Sales Process

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    You have cupped the coffee, you have decided to make a purchase and you have agreed an price. What happens next?

    One of the most daunting things working with a new farmer or exporter, is the ability to build up trust between yourself and the producer. The sale is going to be managed remotely and you are unsure how it will all work.

    It is OK, We are on hand to help you. This is going to be the start of a long-term relationship for everyone.

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    Contract Types

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    We think the easiest way to under the pricing across a range of origins is to work on a FOB basis. The producer will cover the cost of preparing the coffee for export, putting it in to the container and on to a ship. At this point he has covered his reponsibilities and it is over to you. 

    However how can you be sure everything will go to plan?

    Well this comes down to terms of the contract which sets out the responsibilities of both parties. We recommend one of 2 contracting methods. Either of these methods will work for farmers as well. It creates mutual trust and the responsibilities are clear to both sides:

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    • Letter of Credit (L/C)
    • Advance Payment (CAD)
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    Both of these types of contract offer protection in different ways. The balance for each party is sightly different with each. In some cases one will work better than the other. The producer will be keen to receive payment in a timely fashion. Where as a buyer will be concerned their payments disappears and the coffee doesn’t arrive. 

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    Letter of Credit

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    Both of these types of contract offer protection in different ways. The balance is sightly different with each. In some cases one will work in a better than the other. The producer will be keen to receive payment in a timely fashion. Where as a buyer will be concerned their payments disappears and the coffee doesn’t arrive. 

    “I think the possible terms of payment for all of us is LC. he open Lc to our bank using his Taiwanese bank then the coffee shiped acording to detailes in the contract. Then we shipped to he and we recived the payment by providing nessery documents including bill of loding. This is the LC terms of payment in international trade.”

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    • Pre-shipment samples
      • These will be supplied by the producer once the coffee has been through the dry mill and bagged.
      • The exporter will provide you with a representative sample of the coffee they are going to send you.
      • The representative sample should be taken across a range of the bags being sent to you
    • Bill of Loading
      • This is to confirm the container has been loaded on to the ship
    • Bill of Landing
      • This is issued when the container arrives at your designated port.
    • Payment
      • At the start of this type of contract the payment is set up at the bank between you.
      • Once all the contractual obligations have been completed your payment is released to the producer. 

    This means you have control over the coffee, the payments and the quality of the coffee being shipped to you. If this is something that works for you, then perhaps this next method of contracting will work for you?

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    Advance Payment

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    This is similar to Letter of Credit in similar documentation and obligations are present. However the flow of cash is different. In some ways this works well for the buyer as it means there is some control over whether full payment is made at the end of the day. In some ways this can work in a better way with consolidated shipments. 

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    • The buyer will make a 50% advance payment against the contract
    • The producer will start the export processing once they have received the payment
    • A pre-shipment sample will be sent to the buyer
    • A Bill of Loading will be sent to the buyer
    • A Bill of Landing will be presented once the container arrives at the buyers designated port
    • A period of time will be agreed (7-14 days) for the buyer to sample the coffee upon landing.
    • The buyer will make the balancing 50% payment to the farmer

    For this process to work, the buyer has be comfortable paying in advance. If you wish the payment can be routed through our accounts and we will send it on to the producer. It gives you confidence the payment will arrive in the right place. It also means you have a hold over the quality of the coffee. It means the producer has make sure the coffee meets the agreed standard before they will receive full payment.

     

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    Company Background

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    Facilitating Trade

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    We are based in Brighton in the United Kingdom and are recognised as experts in online coffee auction software and have a global client base spanning 5 continents.

    We facilitate international trade between coffee producers in Africa and South & Central America and qualified buyers in all over the world. We do this by promoting and marketing the auction to our strong database of coffee buyers. We reliably manage $millions of green bean sales on our platforms every year working with key players across the industry. 

    Our auctions have sold the most expensive coffee in the world over the past two years breaking the price record in both years. 

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    Sustainable & Repeatable Trade

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    Our desire to create sustainable and direct routes to market for producers is the motivating factor. We continue to generate interest from coffee producers who realise the potential for their business in using us to operate their auction platform. This means our outlook and list of services has matured over this time. 

    We are now in a position where we can provide different levels of service depending upon the needs of the 

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    Marketing and Promotion

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    Our desire to create sustainable and direct routes to market for producers is the motivating factor. We continue to generate interest from coffee producers who realise the potential for their business in using us to operate their auction platform. This means our outlook and list of services has matured over this time. 

    We are now in a position where we can provide different levels of service depending upon the needs of the 

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    Good Understanding of Marketplaces & Auctions

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    Working with buyers…naming contacts. Experience in other industries and market sectors. Online marketing. Direct Sales. Negotiations Skills.

     

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    Why buy coffee in this way?

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    So why would you want to buy coffee through us?

    As an importer or as a roaster you will have a number of ideas on what you want to do and how you will do it. You will also have concerns. Perhaps you have established relationships and you are happy?

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    Addressing Your Concerns

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    What might your concerns be? 

    • What coffee are you offering?
    • Can I buy small volumes?
    • How will it be shipped? 
    • How can I trust the quality will be good enough
    • I am worried I pay for the coffee and it won’t arrive?
    • This all seems really complicated.  
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    What Are We Offering?

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    We are offering a window to buyers for producers who wish to trade directly with their buyers. We are looking to provide new sales channels for farmers to people like you who care about sustainability. We have farmers who want to establish their own routes to markets. They want to change the way they work and their reliance on exchanges and large exporting companies who dictate the price of their coffee.

    We are working directly with farmers and small exporters. We believe in a low entry to the marketplace for those producing the coffee. We want to create a shorter value chain. We want to work with buyers who believe the same. Who believe quality should be rewarded and reinvested in future crops. The virtuous circle of investment. 

    We are looking to generate a sustainable living and return for the farmers who produce the coffee you sell. We imagine you are a buyer with the same ideas.

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    New & Interesting Coffee

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    This means we can connect you with new and interesting coffee. So for example, since regulatory control in Ethiopia was relaxed, farmers have been looking for new ways to sell their coffee. This in turn means you can create a competitive edge and pass on new and interesting coffee to those you work with. We provide you with the traceability and background information to the coffee, which means you almost have a ready made marketing package for you coffee.

    This means we can connect you with new and interesting coffee. So for examples, since regulatory control in Ethiopia was relaxed farmers have been looking for new ways to sell their coffee. This in turn means you can create a competitive edge and pass on new and interesting coffee to those you work with. We provide you with the traceability and background information to the coffee, which means you almost have a ready made marketing package for you coffee.

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    Coffee Quality

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    We want to make sure the coffee going through our auctions comply with some level of quality. Whilst you are able to request sample to see for yourself, we will independently verify the quality of the coffee. 

    • We use an independent Q-Grader tell us what they think of the coffee.  We will provide a cupping report on the auction platform for each coffee. You can download this and refer to it.
    • If the coffee doesn’t meet our threshold then we don’t sell it. We have learnt coffee below 85 does not sell via auction. 
    • Are you worried about the coffee that arrives not being of sufficient quality?
    • We will hold back 15% of the total payment until you sign off the coffee as what you expected.
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    Coffee Price

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    We are careful to provide a price discovery mechanism for the producers. However we also want buyers to get access to good coffee at a fair price. 

    • We want to create a sustainable means of coffee production. This means we want the farmers to earn a living wage from their coffee.
    • This is important for you; it is important for producers. It creates a virtuous circle of investment, quality and standard of living for producers.
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