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Export Plan for High-Altitude Coffee

The export plan for Concordia Trade Company outlines a strategy for 25 high-altitude coffee brands from Concordia, Antioquia, targeting markets in the USA, Canada, Switzerland, Germany, and the UK. The plan emphasizes the company's strengths in quality and diversity while addressing weaknesses such as limited production capacity and lack of export experience. Key components include market analysis, logistics, negotiation terms, and compliance with international regulations to ensure successful global expansion.
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0% found this document useful (0 votes)
12 views32 pages

Export Plan for High-Altitude Coffee

The export plan for Concordia Trade Company outlines a strategy for 25 high-altitude coffee brands from Concordia, Antioquia, targeting markets in the USA, Canada, Switzerland, Germany, and the UK. The plan emphasizes the company's strengths in quality and diversity while addressing weaknesses such as limited production capacity and lack of export experience. Key components include market analysis, logistics, negotiation terms, and compliance with international regulations to ensure successful global expansion.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EXPORT PLAN

CONCORDIA TRADE COMPANY


PRESENTED BY

PAULINA ZULUAGA
VALENTINA RICARD
LAUREEN CORREA
VALENTINA JARAMILLO
CONTENT
Context Pricing
Market Analysis Distribution Channel
Company Promotion and Sales Activities
Market Strategy Logistics
Market Selection Negotiation Terms
Competition Transportation and Insurance
Target Tariffs and Taxes
Value Proposition Compliance
Forecast
CONTEXT
Export plan for Concordia Trade, created by 25 high-
altitude coffee brands from Concordia, Antioquia.

Products: green coffee, roasted coffee brands,


antioxidant supplements.

Target markets: USA, Canada, Switzerland, Germany,


UK.

Goal: guide global expansion and benefit coffee


growers and their community.
MARKET ANALYSIS
COMPANY

Concordia, Antioquia

Main Strengths: High-quality, high-altitude coffee with


recognition, product diversity and traditional methods.
Main Weaknesses: limited production capacity and small-scale
infrastructure, lack of export experience and international
contacts.

Resources & Opportunities: Initial funding from local


government covers key startup costs.
Needs: export experts, production expansion, logistics
partnerships. Unified vision among coffee growers makes
international success possible.
MARKET STRATEGY
MARKET
Imports in USD (2023): This variable made it
SELECTION
01 possible to identify the total value that each
country imported of coffe and antioxidant
supplements
USA China Netherlands Switzerland
Import growth: This variable allows us to evaluate
02 the percentage growth in coffee and supplements
imports in the different countries.
Germany UK Canada UAE Spain

Thailand
8

Logistics profile: Based on ProColombia's


03 evaluation of export logistics conditions.
6

Regulatory measures (tariffs and non-tariff


04 measures): This variable considered tariffs and non-
4
tariff barriers.

Country risk: The economic and political


05 stability of each country was evaluated.
2

0
MARKET
SELECTION
GDP per capita:This indicator reflects the average
06 income per person.

USA China Netherlands Switzerland


Level of consumer spending: This variable indicates
07 total household spending in each country, reflecting
the dynamism of consumption.
Germany UK Canada UAE Spain

Thailand
8

Coffee consumption per capita (2022): This data


08 allows us to analyze the culture and habits of
coffee consumption.
6

Presence of Colombian coffee: Colombia's


09 position among the main coffee exporting
countries to each destination was evaluated. 4

Ease of Doing Business (Ease of Doing Business)


10 This global ranking evaluates the ease of doing
business in a country.
2

0
COMPETITION GREEN COFFEE

Brazil
Cafe do Brasil
Café Bom Dia
Lucca Coffee
Fazenda
Ambiental
Fortaleza.
Colombia
Federación
Nacional de
Cafeteros
Excelso Coffee
SKN Caribecafe
Carcafé
COMPETITION TOASTED COFFEE BRANDS
United States Canada
Starbucks, Peet's Tim Hortons, 49th Germany
Coffee, Parallel Coffee Bonanza Coffee
Stumptown Coffee Roasters, Equator Roasters, The Barn,
Roasters. Coffees & Teas Kaffeezentrale and
Kaffeekommune

Switzerland United Kingdom


Nespresso, Swiss Square Mile Coffee
Coffee Company, Roasters, Hasbean
Blasercafé , Stoll Coffee, Coffee
Kaffee Supremo
COMPETITION ANTIOXIDANT SUPPLEMENTS
United States Canada
NOW Foods, Jamieson, Webber Germany
Nature's Bounty, Naturals, Doppelherz, Abtei,
Garden of Life and Organika, and Orthomol, and
Life Extension. SISU Sanct Bernhard

Switzerland United Kingdom


Burgerstein Holland & Barrett,
Vitamine, Biotta, Vitabiotics,
Morga, and Solgar and
Alpinamed MyProtein
TARGET
Concordia Trade will employ a staged strategy
to increase its reach within our two target
markets: specialty coffee roasters (B2B) and
ethical coffee enthusiasts (B2B) in order to
secure long-term growth and market
presence. Digital marketing, strategic
alliances, ongoing brand narrative, and direct
relationship-building are all components of our
expansion strategy
VALUE PROPOSITION

Benefits: Quality, freshness, origin, production


methods, historical and social value, sustainability
and environmental value, natural solutions

Customer needs: Search for unique and benefit


experiences, the guarantee of consuming a high-
quality product, connection with culture and
historical places

Quality standards: Certifications, quality controls


PRICING
DISTRIBUTION CHANNEL
Strategy: B2B
Focus on direct international sales and strategic alliances.
Ensures better margins, product control, and long-term
partnerships.

Key Partners:
Specialty Coffee Roasters: Roast green coffee and offer to end
consumers.
Supermarkets (e.g., Walmart): Distribute roasted coffee and
supplements.
Coffee Shops: Use and sell green & roasted coffee, highlighting
origin.
Health Food Stores & Wellness Companies: Sell antioxidant
supplements to health-conscious markets.
PROMOTION AND SALES ACTIVITIES

Marketing mix elements: Public relations and


storytelling, professional digital platforms, trade
fairs or industry events

Communication channels: Social media, industry


platforms, online forums or videoconferences of
coffee and/or wellness communities. Networking
at international events, and email marketing

Adaptation: Understand the culture, values and


importance of symbols, communication codes.
LOGISTICS AND EXPORTING
OPERATIONS
NEGOTIATION TERMS
FLEXIBLE INCOTERMS STRATEGY
For our coffee export operations, we identify three Incoterms as
the most suitable: EXW, FOB and DDP. This selection allows us
to offer a flexible approach that adjusts to the needs, experience
and logistical capabilities of each client.

This Incoterm is ideal for inexperienced importers, since the exporter


is in charge of all logistics, including duties and taxes. The cost for the
exporter is high, but the risk for the buyer is low.

Ideal for importers with some experience. The exporter delivers the
goods at the port and loads them. The cost for the exporter is medium,
while the risk for the buyer is intermediate, since he assumes the
responsibility once the merchandise is loaded.

Perfect for large or experienced importers. The buyer arranges all


logistics from the exporter's facilities. The cost for the exporter is low,
but the risk for the buyer is high, since he assumes all the logistics
from the origin.
NEGOTIATION TERMS
PAYMENT METHODS
In international trade, it is essential to choose the right payment
methods to ensure safe and smooth transactions. In this case,
two key options, each offers specific benefits depending on the
type of buyer and the level of risk associated with the
transaction.

This is the main method offered for its simplicity, speed and low cost
(between $30 and $100). A down payment of 30% to 50% is usually
required, depending on the buyer's profile. For new customers, 50% is
required, while recurring customers are allowed 30%. Although
efficient, it involves some risk for the seller, since the final payment is
made after shipment.

It is used as a safer alternative in risky markets or with new buyers.


Guarantees payment only if the terms of the contract are fulfilled,
providing security to both parties. Costs are higher (0.75% to 2%,
minimum $200) and requires more documentation. Useful for
securing large orders and building trust.
TRANSPORTATION AND
INSURANCE
EVALUATION OF TRANSPORT OPTIONS

MODE ADVANTAGES DISADVANTAGES

High cost, limited volume, high


Air Fast delivery emissions

Lower cost, large volume, eco-


Maritime friendlier
Longer delivery time

Not viable (destinations on other


Land Suitable for nearby destinations continents)
GREEN COFFE
FIQUE SACKS
PALLET PLACEMENT
FORM

LEVELS
PALLET
ROASTED COFFE
LAMINATED BAGS

PALLET

LEVELS
BOXES
ANTIOXIDANT SUPPLEMENTS
LAMINATED BAGS

PALLET

LEVELS
BOXES
SHIPPING ROUTE
SHIPPING ROUTE
TARIFFS AND
TAXES
GREEN COFFEE
HS code: We classified this product under the
category 0901.11, “Coffee, not roasted, not
decaffeinated”, which is another way of
referring to regular green coffee.

USA: 0% MFN TARIFF; 10% TRADE DUTY FROM


APRIL 2025. NO SALES TAX IN CALIFORNIA.
UK: 0% MFN TARIFF; NO TRADE DUTIES. ZERO-
RATED FOR VAT.
CANADA: 0% MFN TARIFF; NO TRADE DUTIES.
EXEMPT FROM GST/HST.
GERMANY: 0% MFN TARIFF; NO TRADE DUTIES. NO
COFFEE TAX, 7% VAT.
SWITZERLAND: 0% MFN TARIFF; NO TRADE
DUTIES. 2.6% VAT (REDUCED RATE).
TARIFFS AND
TAXES
SUPPLEMENTS
HS Code: It falls under the category, 2106.90 that refers to "Food
preparations not elsewhere specified or included", and that often includes
non-medicinal preparations used to supplement the diet, like antioxidants,
plant extracts, etc.

TARIFFS & TAXES ON ANTIOXIDANT SUPPLEMENTS (HS 2106.90)


USA: 0% TARIFF FOR COLOMBIA (FTA), BUT 10% TRADE DUTY (FROM
APRIL 2025). TAXABLE IN CA AS SUPPLEMENTS (7.25%–10% SALES
TAX).
UK: MFN TARIFF 8%, 0% FOR COLOMBIA (FTA). 20% VAT APPLIES TO
ALL SUPPLEMENTS.
CANADA: MFN TARIFF 10.5%, 0% FOR COLOMBIA (FTA). GST/HST (5%–
15%) DEPENDING ON PROVINCE.
GERMANY: MFN 18%+9% (QUOTA LIMITS), 0% FOR COLOMBIA (FTA).
19% VAT (STANDARD RATE FOR SUPPLEMENTS).
SWITZERLAND: MFN 2.32%, 0% FOR COLOMBIA (FTA). 8.1% VAT
(STANDARD FOR NON-THERAPEUTIC SUPPLEMENTS).
TARIFFS AND
TAXES
GREEN COFFEE
HS code: We classified this product under the
category 0901.11, “Coffee, not roasted, not
decaffeinated”, which is another way of
referring to regular green coffee.

USA: 0% MFN TARIFF; 10% TRADE DUTY FROM


APRIL 2025. NO SALES TAX IN CALIFORNIA.
UK: 0% MFN TARIFF; NO TRADE DUTIES. ZERO-
RATED FOR VAT.
CANADA: 0% MFN TARIFF; NO TRADE DUTIES.
EXEMPT FROM GST/HST.
GERMANY: 0% MFN TARIFF; NO TRADE DUTIES. NO
COFFEE TAX, 7% VAT.
SWITZERLAND: 0% MFN TARIFF; NO TRADE
DUTIES. 2.6% VAT (REDUCED RATE).
COMPLIANCE
Protecting Concordia Trade's brand, product identity, and the
combined value of its network of coffee farmers is a top
strategic goal as it enters the U.S. specialty coffee market: A
trademark U.S. registration
Produced regulation is the primary regulation that applies to
coffee exports, which constitute a major product of Concordia
Trade. This implies that all of the coffee's cultivation,
collecting, and processing must take place in Colombia.
FORECAST
Each shipment contains approximately 200 boxes
weighing 5kg for each, for a total of 2,400 boxes
each year to California alone. Secondary markets
like Canada, Germany, the United Kingdom, and
Switzerland will receive lower-frequency shipments
based on demand size and entrance strategy.
REFERENCES
Allianz Trade. (2023). *Country Risk Rating*. [Link]
Business Insider. (n.d.). *Latest News in Tech, Markets, Economy & Innovation*. [Link]
California, L. (2025, March 9). Are Supplements Taxable in California? - LegalClarity. LegalClarity. [Link]
Canada Revenue Agency. (2004, 17 agosto). Products Commonly Described as Dietary Supplements. [Link]. [Link]
001/[Link]
CBI. (2023). *What is the demand for coffee on the European market?* Centre for the Promotion of Imports. [Link]
CBI. (2023). *Switzerland: Market potential for coffee*. Centre for the Promotion of Imports. [Link]
CBI. (2024). *Coffee market potential in the United Kingdom*. [Link]
CBI. (2024). *Coffee market potential in Switzerland*. [Link]
CBS News. (2024, April 10). *Tariffs could make your coffee more expensive*. [Link]
Coface. (2023). *Country Risk Assessment*. [Link]
Deloitte. (2024). *Coffee in Switzerland – A hot affair*. Deloitte Switzerland. [Link]
DiverCity Times. (2024). *Canada Import of Green Coffee*. [Link]
European Coffee Federation. (2023). *European Coffee Report 2022/2023*. [Link]
Exportar Café. (n.d.). *Precio de exportación del café Colombiano*. [Link]
Fedlex. (n.d). [Link]
Federación Nacional de Cafeteros de Colombia. (2025, March). *Informe mensual de exportaciones – Febrero 2025*. [Link]
[Link]
Federación Nacional de Cafeteros de Colombia. (2025, April). *Noticias Semanales – Semana 14*. [Link]
Federación Nacional de Cafeteros de Colombia. (2025, April 17). *Estadísticas Cafeteras*. [Link]
Financial Times. (n.d.). *Financial Times*. [Link]
Focbs, F. o. F. C. A. B. S. (n.d). Value added tax. [Link]
Grand View Research. (2023). *Canada Roasted Coffee Market Outlook*. [Link]
Grand View Research. (2024). *Germany Roasted Coffee Market Outlook*. [Link]
IAmExpat. (2024). *What is Switzerland’s favourite type of coffee?* [Link]
icontainers. (n.d.). *Medios de pago internacional*. [Link]
IMARC Group. (2024). *United States Green Coffee Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032*. [Link]
market
Incodocs. (2025). *Incoterms guide [Updated 2025] with free PDF download*. [Link]
IndexBox. (2023). *Green Coffee Market in the United Kingdom – Overview 2024*. [Link]
International Coffee Organization. (2023). *Monthly Coffee Market Report – July 2023*. [Link]

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