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SPILLINGTHEBEANS.By:Allpress,Michael.NZMarketing
Magazine.Jul/Aug2011,p5657.2p.Abstract:Thearticledescribes
thecaseofthesuccessesattainedbyNewZealandbasedcoffee
cartsownerMichaelAllpress.Itsaysthathedesignedandcreatedthe
country'sfirstmobileespressocoffeecartwhichadoptedthelow
capitalbusinessmodelthatheknewhadlongbeenpopularinthe
U.S.HisbusinessAllpressEspressoquicklydifferentiateditselfin
Aucklandwithitsqualitycoffeeandhisuniqueuseofpapercups.
(AN:67677176)
Database: BusinessSourceComplete
SPILLINGTHEBEANS
CASESTUDY
Nearly25yearsago,MichaelAllpressranacoupleofcentralAucklandmobilecoffeecarts.Today,hehas
successfullytakenthecoffeebrandthatbearshisnametoAustraliaandtheUK
Orderingyourmorningtakeawaycoffeeenroutetoworkseemsasnaturalasbreathing.Butthere'sbeena
quantumleapinthewayKiwisbreakfast.Twodecadesago,wewerewashingdowntoastwithaslurpof
instantcoffeeaswerushedoutthedoor.
ThatwasaroundthetimethatMichaelAllpressendedhisOEandreturnedhometosetuphisfirstbusiness,
AllpressEspressoCarts,servingqualityespressocoffeeinpapercupsatVictoriaParkMarketandon
campusatAucklandUniversity.
"Iturned30andthoughtIshoulddosomethingsensiblewithmylifeandstoplivingoutofasuitcase,"he
says.
InSeattle,Allpresshadseenaningeniouswayofbringingqualityespressocoffeetothepeople."Anengineer
fromBoeingbuiltacartcalledMonorailEspressoandsetitupundertheSeattlemonorail.That'swhereIgot
myinitialideafrom."
WiththehelpofaCommerceCommissionresearchanddevelopmentgrant,hedesignedandbuiltNew
Zealand'sfirstmobileespressocoffeecart,adoptingthelowcapitalbusinessmodelthatheknewhadlong
beenpopularintheUS.
AllpressEspressoquicklydifferentiateditselfinAucklandwithitsqualitycoffeeandpapertakeawaycups.It
wasamajorimprovementonthetastedistortingpolystyrenethatcoffeedrinkershadbeenforcedtoendure.
Afterfailingtofindalocallymadepapercup,Allpresshadtoimporthisown,andtooktheopportunityto
customprintthosecupswiththeAllpressEspressologo,creatingimmediatemobilebranding.
"Inthatsmallmarket,thebrandbecamelikeacoffeestatussymbolandwegotsomegoodbrandloyaltyearly
on,"hesays."Itwasquiteafewyearsbeforemycompetitorssawthevalueinthat."
KNOWYOURORIGINS
GreenbeanbuyingisakeypartoftheAllpressEspressobusinessplan.Whereasmostroastersbuytheir
beansthroughamerchantAllpressEspressogoesdirectlytocoffeegrowers,selectingthebestbeans
availablefromsustainablymanagedfarmsthatprovidesocialandeconomicreturntotheirlocalcommunities.
ThecompanysourcesitsbeansfromcountriesinCentralandSouthAmerica,SoutheastAsia,thePacificand
Africa,
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"Wechooseourownbeans,"saysAllpress,"andhavespentmanyyearsbuildingourknowledgeand
relationshipswithgrowersandexporters.Weunderstandspecialtycoffeealotbetterthanweusedto,always
concentratingonflavourandconsistency.We'veestablishedareputationforhavingexceptionaltasting
coffee."
Eachcountryhasitsownuniquecharacteristics,saysAllpressEspressogreenbeanbuyerShaneLow.
"There'snoonepatternofbuyingbeansandbringingcoffeetothemarket.Forexample,PapuaNewGuinea
hasalotofsmall,familylandholders,whileBrazilhaslargeestates.It'ssovaluabletounderstandthatchain
andtheuniquequalitiesofthecoffeeineachregionandhowthingswork."
It'snowadecadesinceAllpressEspressotookcompletecontrolofitsgreenbeanbuyingforitsbusinessesin
NewZealand,AustraliaandtheUK.
ASHOTINTHEARM
In1999,AllpressEspressosuccessfullymovedintotheAustralianmarket,andinSeptember2010openedits
roasterycafeinShoreditch,EastLondon,tosupplyfreshroastedAllpressEspressocoffeetoindependent
cafes.TherearealsoplanstosetupinTokyo.
Expansiononthisscaledemandsasoundbankingpartnership.AllpressEspressohasbeenwithBNZsince
itsearlydayswhenAllpressneededlettersofcredittobeginimportingtheItalianmadeLaMarzoccocoffee
machineshefavoursandexclusivelyrepresentsinAustralasia.
AllpressEspressocommercialmanagerRichardChewratesBNZ'sserviceveryhighlyandenjoysbeingable
toaccessthebank'snewonlineinternationalpaymentssystem.Itsenhancedfeaturesmakeiteasierto
transferfundstosuppliersoverseas,instantlyalertingsuppliersthatapaymenthasbeeninitiatedbyBNZon
behalfofAllpressEspresso.
ChewworkscloselywithBNZPartner'sAmandaWarringtonandspecialistsfromBNZTreasurySolutions
whoarecurrentlydevisingatreasuryriskmanagementpolicyforthecompany.
"Thevolumeofouroverseasgreenbeanbuying,theincreasingpriceofcoffeeandthehighforeignexchange
risksmeanwerequireamuchhigherlevelofcapital,"saysChew."SoBNZorganisedtradefinancefacilities
andgaveusamultioptioncreditlinetosupporttheseinitiatives.Theyknowourneedsandactedreallyquickly
togetatradefinancefacilityupandextendouroverdraft.BNZhasbeenveryresponsive.Theirorderboard
forforeignexchangealertsuswhenthedollarhitsacertainlevel,andintermsofthehandlingofdocuments,
it'stakencareofstraightaway."
INBRIEF
AllpressEspressoisaprivatelyownedcompanyestablishedin1986byMichaelAllpress
Originallyasmallcoffeecartbusiness,itnowroastslocallyinNewZealand,AustraliaandtheUK,supplying
beanstocafecustomers
Thecompanyimportsover800tonnesofgreenbeanseachyearsourceddirectfromorigin
BNZPartnersprovideAllpressEspressowithfinancefacilitiesandriskmanagementpoliciestopurchaseits
coffeebeans
CONTACT
TofindoutmoreaboutBNZPartners,phone0800955455
AllpressEspressofounderMichaelAllpress:"Wechooseourownbeansandhavespendmanyyearsbuilding
ourknowledgeandrelationshipswithgrowersandexporters"
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ByMichaelAllpress
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