Coffee Distribution Business Plan

The Coffee Warehouse, Inc.

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Executive Summary

1.0 Executive Summary

The Coffee Warehouse is a new business providing high-quality, full service distribution of coffee, specialty beverages and beverage-related supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.

The principal owners are Steve and Jennifer Smith, whose combined experience brings office management, high levels of customer service, and over 20 years in distribution and sales management. At this time we are seeking additional equity capital to compliment our own investment and are seeking to arrange a bank line for stock and receivables financing. We have firm commitments to distribute several high-quality new age beverage products, and have verbal commitments from independent retailers throughout the Spokane and Northern Idaho market to carry our product. We plan to distribute our first products within 30-60 days of finalising financial arrangements.

Sales projections for The Coffee Warehouse are estimated to begin at approximately £2,229,000 the first year, increasing to approximately £2,558,000 in FY2005 and approximately £2,936,000 in FY2006. Our net profit is projected at approximately £283,000 the first year, increasing to £406,000 by the end of the third year of operation.

Distinguishing characteristics of our business will be the combination of management experience, sales and distribution experience, high-quality, innovative products and exceptional customer service. In particular, what really sets up apart is that we are the ONLY full service distribution company servicing the coffee and specialty beverage industry in the Spokane/Northern Idaho market. In addition, The Coffee Warehouse has an exclusive contract to distribute a new, groundbreaking product that would enable us to gain immediate access to a majority of the potential customer base.

Highlights



1.1 Objectives

• To open and operate a successful coffee and new age beverage distributorship in the Spokane/Northern Idaho market, employing three to five employees the first year.
• To obtain a minimum of 100 regular customers in the Spokane/North Idaho market the first year of operation.
• Achieve first year sales of £2,000,000.
• Maintain an average gross margin of 25 percent.
• To produce a net profit of at least £400,000 by the end of the third year of operation.

1.2 Mission

The Coffee Warehouse intends to become a recognised distributor of specialty beverages and beverage-related supplies and services to coffee houses and espresso stands throughout Spokane and Northern Idaho.

The Coffee Warehouse plans to develop strong relationships with key customers so we will be viewed as indispensable partners, rather than just another supplier. We will work closely with each customer to recommend product assortment unique for their retail base, appropriate stocking levels, pricing and display assortments, as well as promotional ideas and material to increase sales. The Coffee Warehouse will seek out and work with the manufacturers we represent to deliver the most innovative and exciting products possible to the customers we serve. We are not only selling product, we are selling service.

1.3 Keys to Success

• Innovative quality products.
• Individualised customer service - providing our customers with what they want, when and how they want it.
• Only full service distribution company in the Spokane/Northern Idaho market.
• Fully integrated programmes to help customers increase sales through menu development, creative promotions, advertising, and custom marketing material.
• Exclusive distribution rights to ground-breaking products not currently available in our market.
• The combined experience of the principal owners bring upper office management skills, high levels of customer service, and over 20 years in distribution and sales management.