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Why is a Specialty Coffee Brand so Special?

Why is a Specialty Coffee Brand so Special?

Profit gained from the land can vary greatly, even when producing the same product. This disparity can be seen by comparing the money earned by a cheap Beaujolais winemaker with the earnings of Baroness Philippine de Rothschild producing Mouton Rothschild. The coffee trade is another industry where profit varies greatly. Just like wine you can tenfold your profits by branding your product as a luxury. Yet to call your coffee “specialty” or “single origin” your production methods need to reflect the price tag attached to your product. 
In order to sell your product at higher prices, you need to ensure that its price inelasticity is high or it simply won’t sell. This requires investment in a marketing strategy in order to brand it as unique. Although most might be persuaded by strong branding, quality does need to follow. This requires a meticulous production process. 
As a coffee producer, you need to remember that you are competing with Nespresso and Starbucks. Therefore you should keep in mind that some of these multinationals such as Starbucks which is currently worth 84.6 Billion USD (06/07/17) aren’t worth competing with. If you can’t reach the same economies of scales as these companies you need to differentiate your product, in its marketing and pricing strategies, moving you from a crowded marketplace to a quiet and spacious niche.

 

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