Cafe direct


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Cafe direct

  1. 1. Members: Stéfano Adum María José Barniol Jaime Castillo Juan Pablo Cuesta Walter Reyes
  2. 2. <ul><li>Name of Company: Cafédirect PLC </li></ul><ul><li>Type of Business: Coffee and Tea Manufacturing. </li></ul><ul><li>Products: Tea, coffee, hot chocolate and malted drinks </li></ul><ul><li>C.E.O.: Penny Newman. </li></ul><ul><li>Headquarters: City Cloisters, Ste. B2, 196 Old St., London U.K. </li></ul><ul><li>Web Page : </li></ul>Company Profile
  3. 3. Mission and Vision “ To be the leading brand which strengthens the influence, income and security of producer partners in the south and links them directly to the consumer.”
  4. 4. Brief Company History <ul><li>1991 </li></ul><ul><ul><li>Cafédirect is founded by Oxfam, Traidcraft, Equal Exchange and Twin Trading in response to the collapse in coffee prices, to help strengthen the influence, income and security of coffee growers in the South and to link them directly to the consumers in the West. </li></ul></ul><ul><li>1997 </li></ul><ul><ul><li>Cafédirect Rich Roast, Fresh Ground coffee is launched, the first Cafédirect Roast & Ground coffee to include African coffee beans. </li></ul></ul><ul><li>1998 </li></ul><ul><ul><li>Teadirect is launched. </li></ul></ul><ul><li>1999 </li></ul><ul><ul><li>Cafédirect launches 4 new coffees, 3 of which are organic. </li></ul></ul><ul><ul><li>The first Cafédirect web site is launched. </li></ul></ul>
  5. 5. Brief Company History <ul><li>2002 </li></ul><ul><ul><li>Cafédirect launches a new look freeze dried coffee, Cafédirect 5065, Premium Instant Coffee. </li></ul></ul><ul><li>2003 </li></ul><ul><ul><li>Cafédirect launches Cocodirect Drinking Chocolate. </li></ul></ul><ul><ul><li>New packaging is launched for the entire Roast & Ground range. </li></ul></ul><ul><li>2004 </li></ul><ul><ul><li>Cafédirect became a public company. </li></ul></ul><ul><ul><li>Cafédirect reinvested £540,000 into strengthening its producer organisations’ capabilities and knowledge. </li></ul></ul><ul><ul><li>The company set up a dedicated sales team for the ‘Out of Home’ sector. As a result, sales have increased by 72% and represent 8% of total sales. </li></ul></ul><ul><li>2005 </li></ul><ul><ul><li>Turnover grew 14% - from £17.3 million to £19.75 million. </li></ul></ul><ul><ul><li>By helping to raise incomes and improve health and education in rural sub-Saharan Africa in particular, Cafédirect contributes towards the United Nations’ Millennium Development Goals. </li></ul></ul>
  6. 6. Organizational Chart Geoff Tudhope Krishna Gopala Jean Floogate Penny Newman Chief executive Officer Phil King Finance director Fiona McAnena Consumer director Tim Morgan Guardian nominee director Lazaro Mwakajila Producer directors Raul Aguila Producer directors BOARD DIRECTOR
  7. 7. Business Sectors <ul><li>Cafédirect works with smallholder farmer co-operatives and other producer organizations across 11 countries. </li></ul><ul><li>Its work with these organizations ensures a better deal for over a quarter of a million growers and their families. </li></ul>
  8. 8. Main Markets <ul><li>Cafedirect buys from 33 producer organizations in 11 countries from South and Central America, Africa and Asia. </li></ul><ul><li>The main market of this company is the United Kingdom. Its products are sold through most of the major supermarkets. </li></ul>
  9. 9. Product Range <ul><ul><li>Coffee: </li></ul></ul><ul><ul><ul><li>Las Nubes Gourmet Coffee Beans </li></ul></ul></ul><ul><ul><ul><li>Machu Picchu Gourmet Organic Coffee Beans. </li></ul></ul></ul><ul><ul><ul><li>Mount Elgon Gourmet Organic Coffee Beans. </li></ul></ul></ul><ul><ul><ul><li>Medium Roast, Fresh Ground Fairtrade Coffee. </li></ul></ul></ul><ul><ul><ul><li>Decaffeinated Medium Roast, Fresh Ground </li></ul></ul></ul><ul><ul><ul><li>Espresso, Fresh Ground Fairtrade Coffee. </li></ul></ul></ul><ul><ul><li>Chocolate: </li></ul></ul><ul><ul><ul><li>Cocodirect Drinking Chocolate </li></ul></ul></ul><ul><ul><li>Tea: </li></ul></ul><ul><ul><ul><li>Kilimanjaro, Fresh Ground </li></ul></ul></ul><ul><ul><ul><li>Rich Roast, Fresh Ground. </li></ul></ul></ul><ul><ul><ul><li>Organic Medium Roast, Fresh Ground. </li></ul></ul></ul><ul><ul><ul><li>Organic Machu Picchu Mountain Special, Fresh Ground. </li></ul></ul></ul><ul><ul><ul><li>Organic Palenque, Fresh Ground. </li></ul></ul></ul><ul><ul><ul><li>Organic Earl Grey </li></ul></ul></ul><ul><li>Cafedirect product range includes different types of coffee and tea, and also a type of drinking chocolate. Some of the company’s products are: </li></ul>
  10. 10. <ul><li>Cafédirect invests more than a third (36%) of its gross profit into marketing and product development to: </li></ul><ul><ul><li>Ensure growth </li></ul></ul><ul><ul><li>Raise awareness of Fairtrade </li></ul></ul><ul><ul><li>Communicate the brand and product range. </li></ul></ul><ul><li>These efforts have thrown excellent results in the latest years, increasing brand awareness to 56% and increasing distribution in major supermarkets. </li></ul>Marketing
  11. 11. Brand Awareness <ul><li>Cafédirect's brand positioning is based on two points: </li></ul><ul><ul><li>It is “'the pioneer of Fairtrade”. They ensure that over a quarter of a million growers receive a decent income from trading. </li></ul></ul><ul><ul><li>Quality. Their brands, Cafédirect, 5065, Teadirect and Cocodirect have the most elevated standards of exquisite flavour and quality. </li></ul></ul><ul><li>Cafédirect is ranked as the 3rd most trusted brand in the UK, results of a recent Reader's Digest poll reveal. </li></ul>
  12. 12. Recent Marketing Campaigns: <ul><li>5065 intends to communicate the quality message with a 'lighter' profile through entertainment media. Ranging from: </li></ul><ul><li>The new premium instant coffee brand '5065', launched in 2002, targeted to younger consumers. </li></ul><ul><ul><li>Sponsorship of the most recent theatre plays at the Edinburgh Festival Fringe </li></ul></ul><ul><ul><li>Presence at BAFTA Awards and the British Comedy Awards. </li></ul></ul>
  13. 13. <ul><li>The Company cares much about product quality: </li></ul><ul><ul><li>Strict quality controls have been implemented throughout the supply chain. </li></ul></ul><ul><ul><li>Cafédirect has encouraged farmers to develop organic and gourmet techniques to produce the best quality coffees. </li></ul></ul><ul><ul><ul><li>Farmers are paid an additional bonus for the extra effort that they make in the production of such products. </li></ul></ul></ul><ul><ul><li>By giving farmers a fair price for their labours the company ensures it is getting the best of the crop. </li></ul></ul>Company’s Strategy: Product
  14. 14. <ul><li>As said before, Cafédirect invests a very important share of its gross profit into marketing. </li></ul><ul><li>The image of the company is well respected and admired for its ethical procedures by practicing fair-trade and for the excellent quality of their products. </li></ul>Company’s Strategy: Promotion
  15. 15. <ul><li>Cafédirect operates with very low and competitive prices. </li></ul><ul><li>The company's policy of fairtrade ensures that growers get what they deserve as the company as well too. That's why profit margins in prices are very narrow. </li></ul><ul><li>Examples of prices: </li></ul><ul><ul><li>Organic Medium Roast Fresh Ground 227g (Pack of 3) </li></ul></ul><ul><ul><li>Cafe Direct Organic Medium Roast Fresh Ground: </li></ul></ul><ul><ul><ul><li>£ 8,97 </li></ul></ul></ul><ul><ul><li>Decaffeinated Organic Premium Instant 100g(Pack of 2) </li></ul></ul><ul><ul><li>Cafédirect Decaffeinated Organic Premium Instant: </li></ul></ul><ul><ul><ul><li>£ 7,98 </li></ul></ul></ul><ul><ul><li>Cafe Direct 5065 Coffee Granules Fair-trade Tin 500g: </li></ul></ul><ul><ul><ul><li>£ 18,80 </li></ul></ul></ul>Company’s Strategy: Price
  16. 16. <ul><li>New packaging was launched recently for the entire Roast & Ground range. Essential information about the coffee's character, strength and preparation appears on the front of each pack. </li></ul>Company’s Strategy: Packaging
  17. 17. S.W.O.T. (Strengths - Weaknesses - Opportunities - Threats) <ul><li>Threats </li></ul><ul><li>Natural disasters may cause serious damage to coffee, cacao and tea crops. </li></ul><ul><li>International prices of coffee could fall and cause instability to the company. </li></ul><ul><li>High offering can result in product value to decline. </li></ul><ul><li>Opportunities </li></ul><ul><li>Having excellent relations with growers all around the world, gives Cafédirect credibility and good image, creating the opportunity of going worldwide successfully in the future. </li></ul><ul><li>Weaknesses </li></ul><ul><li>Profits could be higher, but company's policy of Fairtrade stands above this. </li></ul><ul><li>Strengths </li></ul><ul><li>Strong loyalty from the growers. </li></ul><ul><li>Working with growers who have the expertise to provide exceptional quality. </li></ul><ul><li>Focused and direct marketing campaigns show excellent results on sales and brand awareness. </li></ul>
  18. 18. Brief Finance Analysis Turnover & Profit <ul><li>The company’s turnover and profit before taxation were all derived from its principal activity. Sales were made in the following geographical markets: </li></ul>17,347,046 19,754,383 247,242 337,480 Overseas Sales 17,099,804 19,416,903 United Kingdom £ £ 2004 2005
  19. 19. Brief Finance Analysis Cost of sales 11,979,122 13,280,541 (3,273,007) (2,934,143) Closing stock as at 30 September 2,393,131 1,631,266 Fairtrade premiums 9,591,626 11,310,411 Purchases 3,267,372 3,273,007 Opening stock as at 1 October £ £ 2004 2005
  20. 20. Brief Finance Analysis Profit & Loss Account 1,067,708 1,455,918 30 September 2005 (27,500) Bonus issue of shares 146,257 388,210 Profit for the financial year 948,951 1,067,708 1 October 2004 2004 £ 2005 £
  21. 21. Brief Finance Analysis Turnover over last 5 years
  22. 22. Cafédirect PLC – Balance Sheet 30 September 2005 Penny Newman - Director Approved by the board on 8 December 2005 6,522,974 7,008,459 EQUITY SHAREHOLDER’S FUNDS 1,067,708 1,455,918 Profit and loss account 3,277,141 3,303,691 Share premium account 2,178,125 2,248,850 Called up share capital CAPITAL AND RESERVES 6,522,974 7,008459 TOTAL ASSETS LESS CURRENT LIABILITIES 6,415,247 6,967,620 NET CURRENT ASSETS (3,305,460) (3,315,835) Amounts falling due within one year CREDITORS 3,962,072 3,859,299 Cash at bank and in hand 2,485,628 3,490,013 Debtors 3,273,007 2,934,143 Stocks CURRENT ASSETS 107,727 40,839 Tangible Assets FIXED ASSETS 2004 £ 2005 £
  23. 23. <ul><li>At the beginning of this project we supposed to do some research about CaféDirect business and present it in class. Now that we have finished it, we realize that it was not only that. It was: </li></ul><ul><ul><li>Teamwork </li></ul></ul><ul><ul><li>Time management </li></ul></ul><ul><ul><li>Using all the technology tools that nowadays we have </li></ul></ul><ul><ul><li>Using our communication skills, knowing how we should make a very interesting presentation for the audience. </li></ul></ul><ul><li>It was a very interesting project, because we had the opportunity to know a very big company that not only produces excellent quality coffee, tea and cacao, but cares about fairtrade, ethics, the building of a better society where everyone can gain a profit from an activity and not only a few. We should try to imitate this philosophy of business ethics here in Ecuador. </li></ul>Conclusion
  24. 24. Thank You for your attention!