Partnerships

Written by Poul Mark |  December 7, 2011

There is a lot of talk and "buzz" lately about direct trade* coffee. We at Transcend have made a deliberate move away from talking about "direct trade" and instead are focusing on the notion of relationships, as we feel that this is more in line with how we conduct business. Frankly, the marketing term direct trade is confusing, as it infers that there are no middle players in the transaction between the coffee buyer and the coffee seller. This almost always is not the case. It is to avoid this confusion both at the consumer level, and at the producer level that we are using the languge built around relationships.

No where is this relational approach to coffee more evident with us than with the producers we have partnered with in Costa Rica. Having worked with some of them now for three years, we are beginning to truly appreaciate the meaning of these relationships. In fact it is more than just relationships, it is the forging of real partnerships with a number of very important players which enable us to bring some of the best coffee into our shops in Edmonton.

Producer Partners

Obviously the most important partners of Transcend are the producers we work with. Whether we are talking about tiny producers like Carlos of Terra Bella, or larger producers like Ricardo of Santa Lucia, we would have nothing to sell, if it wasn't for the dedication and hard work of the producers we work with. And when we talk about partnerships, we are serious. The producer plays a critical role in ensuring that the product we offer is of the highest quality. This takes mutual understanding on both our part and theirs. The producer needs to understand our standards and expectations, and we in turn need to fully understand the challenges and the costs associated to the producer, in meeting our expectations.

Export Partners

Obviously, we can't be at origin all of the time. But there is something happening with coffee during most of the year, and to ensure that we are part of the process, and in touch with what is going on, we have come to rely on trusted export partners, like Exclusive Coffees of Costa Rica. Francisco and his team, work on our behalf to coordinate the logistical aspects of getting the coffee from the producer's farm to their warehouse and dry mill in San Jose. Further, they coordinate with our import partners to ensure the timely delivery of the coffee once it is ready for export. There are many things to coordinate and oversee, and this relationship and partnership is one which requires a tremendous amount of trust. In the past exporters were often the sellers of the coffee, whereas in this new model, the exporter is simply a service provider, acting as our agent and partner in the country where the coffee grows.

Import Partners

As Transcend has grown, the amount of coffee we sell has increased accordingly. While this is a good thing, it also provides unique challenges, not the least of which, is the financial burden assoicated with importing coffee. As we have moved towards a more relational model in terms of sourcing and buying coffee, we have had to find partners who can assist us in the complicated process of getting the coffee from where it grows to North America. Not only do we rely on our import partners, like InterAmerica Coffee, to deal with logistic issues, and custom clearance, but we have had the fortune of having our import partners act as our financial partners as well. Whereas in the past the importer would purchase coffee and then attempt to sell the coffee they bought to roasters, our new model has changed that too. Now we make the decision on which coffees to buy, which eliminates a large aspect of what was traditionally the importer's role. As the business model has changed for us, our import partners now help us finance the coffee that we purchase, in addition to having it shipped to North America.

I thought it important to write this post, as it should be clear that direct trade is not simply a transaction between a buyer and a seller. At Transcend, we have chosen to focus on the notion of relationships, and partnerships, as it takes a small group of key players to make the business of specialty coffee work. We couldn't do what we do without our partners. And while roles have changed and shifted, our partners are more important now than ever before. You see in the past, you could simply shop around and see who wanted to sell you coffee, but with our relationship business model, this simply doesn't work. The relationship model requires trust, and time, and in truth, the willingness of organizations to work together towards a common purpose, that of providing consumers in Edmonton and Canada with some of the world's most amazing coffee.

*An article that I wrote about direct trade was recently published in Fresh Cup Magazine.

2 comments

  • By Mel  |  Friday, December 9, 2011 01:02 PM

    Thanks, Poul. This kind of clarification will help me out when I'm formulating my thesis questions. The only problem I have with this is the name "relationship coffee". The benefit of the "direct-trade" phrase is that it immediately implies an economic transaction. When I try explaining relationship coffee to people who aren't in specialty coffee, it requires some long-winded background information, mostly to do with the fact that I'm not talking about a type of coffee but a business model. A minor thing, perhaps, but something that becomes important when communicating with people unfamiliar with specialty coffee-speak.


  • By coffeestork  |  Friday, December 9, 2011 10:03 AM

    Enjoyed reading the information in this post as it provides clear information on how the coffee sourcing chain is evolving along with the different specializations and responsibilities. Good that specialized service providers are providing much help, while allowing everyone's focus to remain on what they do best.


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At transcend coffee, we work hard to bring you some of the best coffee beans in the world. We travel the globe, buying direct from passionate farmers, and roast in small batches in Edmonton, Alberta.