as of late 2004 the price had climbed to more than $1 per pound, with Colombia producing 3.2% less crop in late 2004 than it had in 2003 (Wallengren, 2004).
Even so, specialty coffees have maintained their popularity and increased their market share with consumers. The same is true of TCI. Established in 1998 with the purchase, via asset financing, of the equipment of Frisco Roasters for $128,000, TCI has achieved sales of $10 million in just over five years. It experienced a significant spurt of growth because of the historic low (50 cents per pound) in world coffee prices in 2001, since prices to retailers and consumers did not drop significantly. Additionally, it has profited by targeting specialty-coffee niche markets and by concentrating solely on high-quality gourmet and specialty coffees from Costa Rica and Colombia. That has happened even though 50% of the company's product consists of Fair-Trade-Certified coffee, which trades at a premium at the import level and is supported by a premium retail price at the consumer level.
The proposed expansion of markets into Canada should enable TCI to increase its revenues to $25 million within three years. At that point, the company will be well positioned to expand even further, into eastern Europe, where, along with the countries of the Pacific Rim, there has been the fastest growth in the consumption of coffee in recent years (ICO, 2004).
TCI's proposed expansion into Canada reflects increased worldwide consumer demand for premium coffee, which is being supported by the major coffee trade groups around the world. Indeed, in March 2005 Montreal will host ExpoCafe Montreal, the first trade show and conference of its kind in Canada. The expo reflects the dramatic growth of interest in specialty coffees in Canada, and such events as the Expo should provide the company with significant networking opportunities. In that regard, it is worth noting that Starbucks, which began its coffe...