These days the term Private label Coffee has become increasingly important in the Canadian coffee industry.
What is Private labeling...
and how does it apply to coffee? Let's define the term and see how it can be used in practice. At Francesco's Coffee we define private label like this:
"Private label coffee" refers to an arrangement where a brand owner partners with a coffee roastery to produce an exclusive, and privately branded line of coffee products.
Why Start a Private Label Coffee business
The reasons for creating a private label coffee brand are many but primarily it comes down to the age old question of division of labor. A private label simply allows the coffee roastery to focus on the operational concerns of running a complex food manufacturing operation. Conversely, the brand owner is now free to market her product without the shackles of tending to daily operations.
Francesco's Coffee Company offers a Canadian private label coffee solution based on:
- no minimums,
- customer service,
- state of the art processes.
- state of the art technology,
- manufacturing expertise.
We have helped many brand owners create and grow extremely successful coffee businesses and can help you develop and grow your own coffee brand.
Take your first step towards creating your own private label coffee business.
After all, why invest money, time and energy in marketing someone else's brand when you can promote and grow your own, with virtually no up-front expense? Promote your business or champion your cause and build revenues you can truly call your own.
Private label coffee - a Canadian perspective
Now that we're armed with a basic understanding of a private label coffee program, let's take a closer look at some of the reasons you might consider taking this on versus a just using an off the shelf brand.
Coffee, a booming industry
Did you know that coffee is the most popular hot beverage and the number one food service beverage in Canada? Over 14 billion cups of coffee are being consumed in Canada each year (Statistics Canada, 2008) Industry experts agree that sales will continue to rise and consumption of this popular drink will continue to grow in popularity, across virtually all demographic groups. It only makes sense to want to be a part of this exciting industry.
Someone who wants to be a part of the coffee industry, is sometimes known as a "coffeepreneur". they might be café owners, professional baristas, industry bloggers, etc..
Building your own brand's equity - retaining goodwill
We've all seen it. Hard working coffeepreneurs (café owners, barista's, resellers, retailers) who, over the years, build their supplier's brand to considerable levels. Over time, these good folks will spend ten's of thousands of dollars promoting a coffee brand that they have no ownership or control of, literally vaporizing any brand equity they might have been able to build during that time.
After all, how often have we seen the phrase, "Now serving brand XXZ" on a sign or napkin or cup? What value does this add to your supplier's brand over 10, 20 or even 30 years of business? Could you retain that goodwill and use it for your own business instead?
Consider that outfitting a bare bones roastery will set a business owner back between 150K and 250K in capital costs without taking into account debt servicing for the next 5-10 years. In addition you will have to pay ongoing overhead costs like rent, utilities, labor, upkeep etc..
But there is a solution. Increasingly, savvy marketers, are choosing to leverage the considerable capital investment of an existing facility rather than taking on the massive startup expense.
By partnering up with an established coffee roastery, our brand owner can now use virtually all of her precious startup capital for critical marketing expenses such as website development and advertisement. Private label Coffee democratizes access to the coffee industry and makes creating a coffee company a reality for any coffeepreneur.
Hands-on real-time market research
Starting a private label business also offers a major advantage that is often overlooked. It is the single most useful business research tool and it allows the coffeepreneur to test her startup ideas without taking on a huge pile of debt. All this is valuable, actionable research is possible while earning real money and while shirking virtually all of the risks associated with startup. To me that is the single most valuable feature of a private label program.
Consumers value unique products. It's very difficult to be unique though, when thousands of other are retailing the same tired brands. Niche markets offer less competition, are easier to access, generally more profitable and may go unnoticed for years and years by national brands.
Control your own brand
When you own the brand you can make decision based on your needs. Does your label require updating? Do you need to explore a different market niche? See an opportunity you want to pursue? These are just a few of the many reasons to start you Private label coffee company instead of just promoting a brand in an already saturated market.
Want to know more?
Francesco's Coffee Company is a Canadian business based in beautiful Ottawa, Ontario, Canada. We ship coffee domestically and internationally and specialize in building Private Label Coffee business for our Canadian Customers. We do have a small but growing number of international customers who find our high quality, efficient shipping, and Canadian pricing attractive.
Reach out to us by completing the form at the top of the page. We are friendly and quick to respond and will take you for a fun virtual tour of what's involved so that you can make an accurate and informed decision on starting your Private Label Coffee Buisness.