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Genius Coffee Platform

This project aims to disrupt the green coffee bean industry in Asia, starting from Hong Kong.

Creator:zi.xing zi.xing

US$ 653,000

Pledged out of $640,000USD

Backers

months to go

Campaign Deadline: Sat Dec 30 2023

Our Story & Strategy

The story and background of your project

This project aims to disrupt the green coffee bean industry in Asia, starting from Hong Kong. It is no doubt that a good cup of coffee begins with fresh green beans. Hence, this project introduces fresh green coffee beans directly from farms in Latin America into Hong Kong. Providing customers in Hong Kong a cost efficient and reliable supply of fresh green coffee beans into Hong Kong.

How does your business model help sustain your project?

This project aims to generate revenue through the sale of green coffee beans and the sale of artisanal craft house blends.

Our founder, Firman had procured a sample of green coffee beans from Brazil and conducted market research through the help of his advisor. During his Foundational SCA Course, Firman had learnt that within almost coffeeshop’s blend, it has to include a Brazil variety coffeebean because Brazillian coffee beans are staples within every blends. Therefore, he understood that there is demand for Brazillian beans within the green coffee market.

Upon further research, Firman found out that the average price of green coffee beans, with an average score of 82, is priced at HKD65 per kilogram. When purchased in tonnes, the price per kilogram is HKD 60. Firman is confident that the distribution of green coffee beans from Brazil would yield him at least 33% gross margin in wholesale quantities.

Firman plans to sell these beans via online shop and through the coffee roasting groups in Hong Kong. Delivery will be done through Gogovan, with a minimum order amount for free delivery.

Firman plans to develop his Firman’s own artisanal craft house blends through his import of Brazillian green beans in the future. After the distribution of Brazillian greens mature in Hong Kong, he will develop other coffee products such as drip bags, cold brew and house blends for the retail market. Firman had started experimenting with cupping various types of coffee beans and conducting research on beans suitable for the Hong Kong market.

With a new line of products and a fixed distribution line, Firman will look to expand into the South East Asian market.

Target Audience

Commercial Coffee Roasters and Home Roasters in Hong Kong.

What is the specialty of your project?

Hong Kong’s current green beans are imported from Taiwan coffee traders. This leads to multiple layers of middleman, from Brazil exporting trader, to Taiwan exporting trader to Hong Kong.

However, coffeeshops tend to protect their margins by importing lower grade coffee beans and sell coffee at market prices in Hong Kong. This additional layers of costs and lower quality in coffee beans are brought forward to the consumer, leading to a paying a high price for lower quality Coffee.

What are the environmental, social and governance (ESG) aspects of your project?

Increase in quality of coffee blends in Hong Kong, leading to a higher quality consumed by consumers and to protect the margins of coffee roasters and coffeeshops in Hong Kong.

Competitor Analysis

The green coffee in Hong Kong are imported from Singapore and Taiwan, hence there are no known importer competitors in Hong Kong as of today.

Six Month Project Plan

Month 1:

1. Place order for coffee shipment in Brazil.

2. Arrange storage facility location in Hong Kong.

3. Learn bookkeeping and Accounting.

Month 2:

1. Procure adequate equipment for storage facility to ensure proper environment controls.

2. Arrange transport logistics from Hong Kong’s port to storage facility.

3. Set up online shop for sale of green coffee beans.

4. Develop pricing model for varying quantity of green coffee beans.

Month 3:

1. Arrival of shipment from Brazil.

2. Develop promotional materials for marketing and advertising of green coffee beans.

Approach coffee blend roasters and coffeeshops in Hong Kong with 500g of green bean samples.

Cost Projection

For a healthy margins, Firman is required to place an order of 10 tonnes of green beans from Brazil. The expected cost including freight to Hong Kong is HKD 450,000. The rental for the storage facility is estimated at HKD 180,000 annually. The estimated time for complete sale of 5 tonnes is projected to be 9 months, which is healthy because the quality green coffee beans starts to drop after 9 months of storage (given 3 months from harvest).

he expected cost of the online shop is HKD 5,000. The expected cost of marketing campaign and promotional materials is HKD 5,000. Firman expects to provision HKD 10,000 for ad-hoc costs.

Firman estimates that around 200kg of green coffee beans will be given away as samples within the 5 tonnes of green beans. This leads to 9.8 tonnes of green coffee beans for sale.

This amount will lead to a breakeven of cost and fund raised. Firman expects the project to be profitable when order amount exceeds 10 tonnes, where the profitability comes from economies of scale.

First Fund Amount (USD)

220000

Second Fund Amount (USD)

220000

Third Fund Amount (USD)

200000

How does your business model help sustain your project?

This project aims to generate revenue through the sale of green coffee beans and the sale of artisanal craft house blends.

Firman plans to sell these beans via online shop and through the coffee roasting groups in Hong Kong. Delivery will be done through Gogovan, with a minimum order amount for free delivery.

With a new line of products and a fixed distribution line, Firman will look to expand into the South East Asian market.