427 Coffee

427 Coffee, LLC
William & Shannan Mahnken         427coffee.com [email protected]       706-300-4716

Executive Summary
Opportunity
Problem
The African nation of Burundi grows some of the world’s greatest coffee, a coffee with hints of
fruit, citrus, and honey. The volcanic soil in Burundi, 1200mm of annual rainfall, as well as the higher altitudes, all contribute to the perfect growing conditions for coffee.
However, there is no main distributor of Burundi coffee in the United States. Burundi coffee is being imported to the US in small quantities, usually by direct trade with the farmer. Burundi’s GDP is dependent on exporting coffee, with some sources citing 90% of their agriculture GDP is from exportation of coffee.

Solution
427 Coffee (formerly Kustom Koffee), an online-retail coffee seller, is in a unique position to become the exclusive distributor of Burundi coffee in the United States. Using their coffee brand 427 Coffee, they will be able to use their connections with Walmart and Amazon online, 427coffee.com, cold and direct sales, to sell green coffee beans to roasters, cafes, restaurants, and home consumers. 427 Coffee will also have a roastery allowing them to roast coffee beans, accounting for about 50% of their total sales. 427 Coffee will sell roasted coffee beans and ground coffee in 12oz bags as well as creating our own single-serve pods, such as K-Cups and Nespresso pods. Green coffee beans (currently sold at $2.30/lb in commodity) would be sold on average at $6.95/lb, roasted for wholesale at $10/lb, and roasted for home consumer at $14.95/12oz. bag. Smaller subsets, such as single-serve pods, would be valued at $45/lb.

What We Need
427 Coffee is looking for funding to design and equip a roastery in Lumpkin County, Georgia, and expected cost of $500,000. 427 Coffee will self-fund the cost of the first container of coffee, a cost of approximately $96,600.

Market
The coffee market in the United States is valued at $95 billion in 2023, and is predicted to climb an additional 8% by 2028. The coffee market in the United States is dynamic and robust, characterized by high demand and a growing appreciation for specialty and premium coffee. Americans consume a significant amount of coffee daily (400 million cups), with increasing interest in ethically sourced and sustainably produced beans. The market is highly competitive, featuring a mix of large multinational brands, independent roasters, and specialty coffee shops. Trends indicate a shift towards high-quality, unique flavor profiles, and a strong emphasis on origin and production transparency. This evolving landscape presents substantial opportunities for niche players, particularly those offering unique, high-quality, and ethically sourced coffee like Burundi coffee.
427 Coffee is looking to serve medium and small roasters, cafes, hotels, and restaurants, as well as home consumers.

Competition
Major Competitors:
1- Starbucks Coffee Company
Strengths – Strong brand recognition, extensive distribution network, broad product range.
Weaknesses – High price point, perceived as mainstream rather than specialty. 2- Peet’s Coffee
Strengths – Reputation for high-quality, specialty coffee, loyal customer base.
Weaknesses – Limited geographical reach compared to larger distributors. 3- Green Mountain Coffee Roasters (Keurig Dr Pepper)
Strengths – Strong presence in single-serve coffee market, diverse product offerings.

Weaknesses – Focus on single-serve limits appeal to traditional coffee drinkers. 4- Sweet Maria’s
Strengths – Considered the “go to” for green and roasted coffee beans. Excellent website information on origins and beans
Weaknesses – Too wide of a variety limits buying power, which increases the cost passed on to consumers.
5- Local and Regional Distributors
Strengths – Strong local presence, personalized customer service, niche market
appeal.
Weaknesses – Limited scalability, smaller marketing budgets.

Why Us?
427 Coffee will be focused on Burundi coffee beans from all five growing regions: Kayanza, Ngozi, Muyinga, Kirundo, and Muramvya. With a variety of quality, cleaning processes, and roasts, consumers will be able to choose how they want their bean. 427 Coffee will be offered in a variety of sizes in all varieties from a small sample 1/2kg bag to a 50lb sack. We will also offer a variety of grinds as well as single-serve pods.
Team lead positions at 427 Coffee will be staffed with experts in their fields (marketing, sales, roasters, etc.), who can bring their expertise to the business, while also be cross-trained so everyone is aware of how their jobs affect others. 427 Coffee will help employees become SCA certified. The SCA (Specialty Coffee Association) is a nonprofit trade association that aims to improve the coffee industry through collaboration and a progressive approach. Their goals include sustainability, equitability, quality standards, and innovation.
While the main focus of 427 Coffee will be online and through direct and cold calls, there will be several opportunities for local growth and sales. 427 has already had interest from local cafes for roasted coffee, such as Bear Necessities Cafe in Dahlonega, Georgia, a very popular local coffee and pastry cafe. 427 can also generate additional revenue with “cupping” sessions, coffee tastings, and co-roasting hours. Dahlonega, Georgia has several wine vineyards who host tasting and sampling, and 427 Coffee can join the trend, which will not only be an additional revenue stream, but also provide marketing through the local tourism board. 427 Coffee will also host co-roast hours, hours where qualified consumers can rent our roasting machines in our downtime to roast their own coffee beans.

Future expansion ideas include building our own local/regional cafes featuring our coffee, introducing additional single-origin coffees, and expanding into retail stores (such as Walmart, Target).

Expectations
Forecast
427 Coffee’s financial picture is quite promising. Each container of green coffee beans should
cost around $100,000 (at the current commodity price of $2.30/lb but prices will vary with quality and processes used). A fully loaded container will contain 42,000lbs of green coffee beans. One can expect 5% to be used for samples and lab work, leaving roughly 40,000lbs for sell-through. Though percentages may vary, the expected sales breakdown of each container is: Green bean wholesale 50%, Commercial roasted 30%, Consumer roasted 15%, Single-serve packaging 5%. Please note, there is a 12-15% weight loss in the roasting process (we will use 15% in our projections). Also, while consumers will buy a variety of product sizes, the most common will be the 12oz standard grocery store gusset bag.
With a full container turnover, 427 Coffee can expect to gross:
Green Bean – Wholesale, 20,000lbs, $6.95lb = $139,000
Commercial Roasted – Wholesale, 10,200lbs, $10lb = $102,000
Consumer Roasted – Retail, 5,100lbs (6800 12oz bags), $14.95ea = $101,660 Consumer Roasted Single-Serve – Retail, 1,700lbs (61,200 pods), $1ea = $61,200
Total Gross = $307,260 per container (sales minus container purchase)
$153,630 per month (2025 expectation of 1 container every 2 months) - $74,000 monthly expenses (wages, utilities, shipping etc.)
________________________________________________ Net Profit = $78,630 per month.
In the event of only being able to sell 50% of the container, the breakdown looks like: Green Bean – Wholesale, 10,000lbs, $6.95lb = $69,500

Commercial Roasted – Wholesale, 5,100lbs, $10lb = $51,000
Consumer Roasted – Retail, 2,650lbs (3400 12oz bags), $14.95ea = $50,830 Consumer Roasted Single-Serve – Retail, 950lbs (30,600 pods), $1ea = $30,600
Total Gross = $105,330 per container (sales minus container purchase) $52,665 per month (2025 expected 1 container every 2 months) - $74,000 monthly expenses (wages, utilities, shipping, etc.)
________________________________________________ Net Profit = -$22,335 per month.
This shows our minimum sell-through on each container is roughly 60%.
Opportunity
Why Burundi Coffee?
Selling Burundi coffee in the United States offers several advantages due to its unique characteristics, growing market trends, and the increasing demand for specialty coffee. Here are the key advantages:
1. Unique Flavor Profile
Burundi coffee is known for its distinct and complex flavor profile, often characterized by bright acidity, fruity notes, and a rich, full body. These unique flavors can appeal to coffee enthusiasts and connoisseurs in the US market who are always looking for new and interesting taste experiences.
2. Specialty Coffee Market Growth
The specialty coffee market in the United States is experiencing significant growth. Consumers are increasingly seeking high-quality, artisanal coffee options. Burundi coffee, with its unique attributes, fits well within this market segment and can attract consumers willing to pay a premium for specialty products.
3. Story and Origin
The origin of coffee is becoming an important factor for many consumers. Burundi coffee comes from a region with a rich cultural heritage and a compelling story.

Promoting the coffee's origin can create a strong emotional connection with consumers
who value transparency, authenticity, and social impact. 4. Ethical and Sustainable Sourcing
Burundi coffee is often produced by smallholder farmers who rely on coffee production for their livelihood. Emphasizing fair trade practices and sustainable sourcing can appeal to socially conscious consumers in the US market who prioritize ethical consumption. This can also enhance the brands reputation and build customer loyalty.
5. Support for Developing Economies
By importing and selling Burundi coffee, businesses can contribute to the economic development of Burundi. Highlighting this positive impact can resonate with consumers who want their purchases to support global development and improve living standards in coffee-growing communities.
6. Differentiation in a Competitive Market
The coffee market in the United States is highly competitive, with numerous brands and varieties available. Offering Burundi coffee can differentiate a business from competitors by providing a unique product that stands out due to its origin, flavor, and story.
7. Increasing Consumer Awareness
As consumers become more educated about coffee, their appreciation for diverse and high-quality coffee origins grows. Promoting Burundi coffee can cater to this growing awareness and meet the demand for distinctive, high-quality beans.
8. Marketing Opportunities
The story of Burundi coffee, including its journey from small farms to U.S. consumers, provides rich content for marketing campaigns. Engaging storytelling can attract media attention, generate buzz on social media, and enhance brand image.
9. Partnerships and Collaborations
Selling Burundi coffee opens opportunities for partnerships with cafes, restaurants, and retail stores looking to offer unique and premium coffee options. Collaborations with specialty coffee shops and influencers can further boost visibility and credibility.
10. Potential for Premium Pricing
Given its specialty status and unique qualities, Burundi coffee can often be sold at a premium price. This can lead to higher profit margins compared to more common coffee varieties.

By leveraging these advantages, 427 Coffee can successfully introduce and promote Burundi coffee in the US market, catering to the growing demand for high-quality, ethically sourced specialty coffee.

Target Market
The target market for Burundi green coffee beans encompasses a variety of segments within the coffee industry, each with specific needs and preferences. Here are the primary target markets:
1. Specialty Coffee Roasters
Characteristics: These are small to mid-sized companies that focus on high-quality,
unique coffee beans. They often emphasize artisanal roasting methods and
cater to discerning coffee drinkers.
Needs: High-quality beans with distinct flavor profiles, transparency about the beans'
origin, and sustainable sourcing practices. Likely to purchase smaller quantities
of green coffee beans.
Benefits of Burundi Coffee: The unique, complex flavors of Burundi coffee beans align
with their emphasis on specialty and quality.
2. Specialty Coffee Shops and Cafés
Characteristics: These establishments focus on providing premium coffee experiences.
They often highlight the origins of their coffee beans and educate customers
about different coffee varieties.
Needs: High-quality coffee with a compelling story, consistency in bean quality, and the
ability to differentiate their offerings. Likely to purchase large quantities of
roasted beans (specifically espresso) on a consistent basis.
Benefits of Burundi Coffee: Burundi coffee's unique taste and origin story can attract
coffee enthusiasts looking for new and exceptional flavors.
3. Wholesale Coffee Suppliers
Characteristics: These suppliers provide coffee beans to various businesses, including
cafés, restaurants, and grocery stores.
Needs: Consistent quality, reliable supply, and a range of coffee options to meet
diverse client needs. Likely to purchase large quantites of green coffee beans. Benefits of Burundi Coffee: Adding Burundi coffee to their portfolio can help suppliers
offer more variety and meet the demand for specialty coffee.

4. Home Coffee Roasters
Characteristics: Enthusiastic hobbyists who roast their own coffee at home. They are
often well-informed about coffee and enjoy experimenting with different beans. Needs: Access to high-quality, unroasted beans with detailed information about the
origin and characteristics. Likely to purchase small quantities of green coffee
beans.
Benefits of Burundi Coffee: The unique flavor profile and origin story provide an
exciting option for home roasters to explore.
5. Specialty Grocery Stores and Online Retailers
Characteristics: Retail outlets that sell a curated selection of high-quality, artisanal food
products, including coffee beans.
Needs: Unique and premium products that appeal to their quality-conscious customers.
Likely to purchase quantities of retail bags of whole and ground coffee on a
regular basis.
Benefits of Burundi Coffee: Offering Burundi coffee can help these retailers differentiate
their product range and attract coffee aficionados.
6. Ethical and Sustainable Coffee Buyers
Characteristics: Consumers and businesses that prioritize ethical sourcing and
sustainability in their purchasing decisions.
Needs: Coffee that is ethically sourced, with certifications such as Fair Trade or
Organic, and a clear impact on improving the livelihoods of farmers. Likely to
purchase individual bags of whole bean and ground coffee.
Benefits of Burundi Coffee: Burundi coffee often meets these criteria, appealing to
buyers who value social and environmental responsibility.
7. Coffee Importers and Distributors
Characteristics: Companies that import and distribute coffee beans to various
segments of the market, including roasters and retailers.
Needs: A consistent and reliable supply of high-quality beans, detailed origin
information, and support for marketing and promotion. Likely to partner with to
help reduce international shipping costs with larger source purchases. Benefits of Burundi Coffee: Importers and distributors can leverage the unique selling
points of Burundi coffee to expand their product offerings and attract new clients. 8. Coffee Enthusiasts and Connoisseurs

Characteristics: Individuals who are deeply passionate about coffee, often seeking out unique and high-quality beans to enhance their coffee experience.
Needs: Access to premium beans with unique flavor profiles and a compelling backstory. Likely to purchase small quantity green and roasted beans.
Benefits of Burundi Coffee: The distinctive taste and origin of Burundi coffee can captivate this market segment, making it a sought-after option for their personal use.
By targeting these diverse segments, 427 Coffee can effectively market Burundi green coffee beans, capitalizing on the growing demand for specialty, high-quality, and ethically sourced coffee

Competition
Overview
The competition for 427 Coffee as a coffee bean wholesaler in the United States is
multifaceted, involving various players across different segments of the coffee industry. These competitors range from large multinational corporations to specialized niche players. Understanding the competitive landscape is crucial for positioning and strategic planning.
Major Competitors
1. Large Multinational Coffee Companies
Examples: Starbucks Coffee Company, Nestlé (Nescafé), J.M. Smucker (Folgers) Strengths: Strong brand recognition, extensive distribution networks, large marketing
budgets.
Weaknesses: Focus on mass-market products rather than specialty beans, perceived
lack of uniqueness and premium quality.
2. Specialty Coffee Roasters and Distributors
Examples: Stumptown Coffee Roasters, Intelligentsia Coffee, Counter Culture Coffee Strengths: High-quality products, strong focus on unique and premium beans, loyal
customer base among coffee enthusiasts.
Weaknesses: Smaller scale and distribution networks compared to multinationals,
higher price points.

3. Online Coffee Retailers
Examples: Blue Bottle Coffee, Trade Coffee, Coffee Bean Direct
Strengths: Direct-to-consumer sales, convenience of online shopping, ability to offer a
wide variety of coffee origins.
Weaknesses: Competition with physical retail presence, potential logistical challenges
in delivering fresh products.
4. Local and Regional Coffee Distributors
Examples: Atlas Coffee Importers, Royal Coffee, Coffee Shrub
Strengths: Strong local presence, personalized customer service, niche market appeal Weaknesses: Limited scalability, smaller marketing budgets, often limited to regional
distribution.
5. Ethical and Sustainable Coffee Brands
Examples: Equal Exchange, Ethical Bean Coffee, Thrive Farmers
Strengths: Emphasis on fair trade and sustainability, appeal to socially conscious
consumers, strong brand stories.
Weaknesses: Higher costs associated with ethical sourcing, niche market appeal may
limit mass-market reach.
Competitive Strategies
1. Differentiation through Quality and Ethics
- Emphasize the unique flavor profiles and high quality of Burundi coffee beans.
- Highlight sustainable and ethical sourcing practices, such as Fair Trade or Direct
Trade certifications.
- Showcase the positive impact on Burundi farmers and communities.
2. Building Strong Relationships
- Develop strong relationships with specialty coffee roasters and cafes.
- Offer personalized service, including tailored coffee profiles and exclusive sourcing
arrangements.
- Engage in direct marketing efforts to coffee shops and small roasters who value
unique, high-quality beans.

3. Marketing and Branding
- Create a compelling brand story that highlights the unique origins and qualities of
Burundi coffee.
- Utilize digital marketing, including social media, content marketing, and influencer
partnerships, to reach a broader audience.
- Participate in coffee industry events, trade shows, and tastings to increase visibility
and credibility.
4. Operational Efficiency
- Invest in supply chain and logistics to ensure the fresh and timely delivery of coffee
beans.
- Maintain a consistent and reliable inventory to meet customer demand without delays. - Use technology to streamline operations and enhance customer experience.
5. Partnerships and Collaborations
- Partner with eco-friendly and health-conscious brands to expand market reach.
- Collaborate with industry influencers and coffee experts to build credibility and attract
a niche audience.
- Engage with coffee education initiatives, such as barista training programs and coffee
tasting workshops, to build brand loyalty.
6. Customer Education and Engagement
- Educate customers about the unique qualities and benefits of Burundi coffee beans
through workshops, tastings, and online content.
- Develop loyalty programs and incentives for repeat customers.
- Offer transparent information about sourcing, production, and impact to build trust and
loyalty.

Conclusion
By understanding the competitive landscape and leveraging their unique strengths, 427 Coffee can carve out a significant niche in the US market. Focusing on quality, ethical
sourcing, strong customer relationships, and effective marketing strategies will be key to standing out in a crowded market and achieving long-term success.

Execution
Marketing & Sales
1. Market Research and Analysis
-Identify Target Audience: Specialty coffee roasters, cafes, restaurants, online retailers,
and consumers focused on ethical and high-quality coffee. Let customers know
date of container arrival so they can pre-order beans.
Understand Consumer Preferences: Conduct surveys and focus groups to understand
what U.S. consumers value in coffee, such as flavor profiles, sustainability, and origin stories. Offer subscription services to the customers so they can receive beans in a timely manner and not feel the need to reorder.
2. Brand Positioning
-Unique Selling Proposition (USP): Highlight the unique flavor profile of Burundi coffee,
sustainable and ethical sourcing practices, and the positive impact on Burundi
communities.
-Brand Story: Craft a compelling narrative about the journey of Burundi coffee from
farm to cup, emphasizing the artisanal, small-batch production, and the cultural heritage of Burundi.
3. Product Development
- Quality Assurance: Ensure consistent high quality by implementing rigorous quality
control measures at every stage of production and distribution.
- Packaging: Use eco-friendly and attractive packaging that tells the story of Burundi
coffee, includes detailed information about the origin, and highlights sustainability efforts.
4. Digital Marketing
-Website: Develop an engaging and informative website with an online store, detailed
product descriptions, and educational content about Burundi coffee. -Search Engine Optimization (SEO): Optimize the website for search engines to
increase visibility for keywords related to specialty coffee, Burundi coffee, and sustainable coffee.

-Content Marketing: Create blogs, videos, and infographics about coffee cultivation in Burundi, the unique characteristics of Burundi coffee, and brewing tips.
-Social Media Marketing: Utilize platforms like Instagram, Facebook, and LinkedIn to share visually appealing content, engage with the coffee community, and run targeted ad campaigns.
-Email Marketing: Build an email list and send regular newsletters with updates on new arrivals, special offers, and educational content.
5. Trade Shows and Events
-Coffee Industry Events: Participate in trade shows, expos, and coffee festivals to
showcase Burundi coffee, network with industry professionals, and gain media
exposure.
-Tasting Events: Organize coffee tasting events and cupping sessions to let potential
buyers experience the unique flavors of Burundi coffee firsthand.
6. Partnerships and Collaborations
-Specialty Coffee Roasters: Collaborate with specialty coffee roasters to create co-
branded products and leverage their existing customer base.
-Sustainable and Ethical Brands: Partner with other brands committed to sustainability
and fair trade to reach a broader audience.
-Influencers and Coffee Experts: Engage with influencers, bloggers, and coffee experts
to review and promote Burundi coffee.
7. Sales Strategy
-Direct Sales: Build a dedicated sales team to reach out to specialty coffee shops,
cafes, and roasters.
-Wholesale Platforms: List Burundi coffee on popular wholesale platforms to increase
reach and accessibility.
-Loyalty Programs: Develop loyalty programs for repeat customers, offering discounts
and exclusive access to new products.
8. Educational Initiatives
-Workshops and Training: Offer workshops and training sessions for baristas and
coffee enthusiasts on brewing techniques, the unique qualities of Burundi coffee,
and its sustainable farming practices.
-Transparency and Traceability: Provide detailed information about the sourcing
process, farmer profiles, and the impact of their purchases on Burundi communities.

9. Public Relations (PR)
-Press Releases: Issue press releases to announce new product launches,
sustainability initiatives, and participation in industry events.
-Media Coverage: Seek coverage in specialty coffee magazines, blogs, and podcasts
to increase brand visibility and credibility.
10. Customer Engagement and Feedback
-Interactive Channels: Use social media and the company website to interact with
customers, answer questions, and gather feedback.
-Surveys and Reviews: Encourage customers to leave reviews and complete surveys
to continually improve product offerings and customer service.
Key Performance Indicators (KPIs)
-Website Traffic: Monitor the increase in visitors and engagement on the website. -Social Media Metrics: Track followers, engagement rates, and reach on social media
platforms.
-Sales Growth: Measure the increase in sales volume and revenue.
-Customer Acquisition and Retention: Track new customer acquisitions and repeat
purchase rates.
-Market Penetration: Assess the number of new partnerships with roasters, cafes, and
retailers.
By implementing this comprehensive marketing strategy, 427 Coffee can effectively penetrate the US market, build a strong brand presence, and achieve sustainable growth.
Operations
Locations & Facilities
427 Coffee will operate out of a 3,000-5,000 square foot warehouse near HWY 400, a direct highway to Atlanta, I-75 and I-85. Locating the warehouse in Lumpkin County, Georgia also places it within the heart of North Georgia wine country, where we will be able to take advantage of the wine tours and local marketing, utilizing our cupping and tasting sessions. The warehouse will be separated into 4 segments: lab/office, storage, roasting and shipping.

Lab – The lab is where the roasting samples will be stored and tested. The lobby, main office and marketing/sales office will also be in this segment.
Storage – This will be an air conditioned room where our green beans and roasted beans will be stored, ensuring stability and consistent temperatures at the beginning of roasting.
Roasting – This area will be were the roasters are located, as well as the pallets of beans to be roasted. The destoner and color sorter machines will also be in this area, as well as the color tester and density gauges.
Shipping – This is the area where the beans will be packaged and shipped. There will also be a dock for container receiving and storage space for packaging equipment.
Company
Overview
Ownership & Structure
427 Coffee is a Limited Liability Corporation. All membership shares are currently owned by William and Shannan Mahnken.
William Mahnken has 30 years of management experience in companies such as Walmart, Con-art Concrete, and Books-a-Million. He also has quality control experience from his years at Con-art. William also took courses in business, engineering, architecture, and archaeology. He is a life-long coffee drinker, who loves to learn about the art and history of the coffee world. William started Kustom Koffee in May 2023, a company designed to create sample and variety K-Cup boxes. While sales were exceptionally good, the profit was thin because we were selling other companies coffee purchased from retail. William started researching the idea and decided to create his own coffee line, 427 Coffee. Kustom Koffee has now become 427 Coffee and will become a green and roasted coffee bean wholesaler.
Shannan Mahnken has 20 years of management experience with Walmart, before leaving to become an independent life insurance broker. Shannan considers herself a people person and is amazing at creating customer connections, which will be vital in the success of 427 Coffee. Shannan has several years of human resource experience as well as her extensive outside sales experience. Shannan will manage the offices and day-to-day operations.

Team
Management Team
Our management team will be broken into several departments, with a team lead over each:
Sales/Marketing, Shipping, and Roasting. Our initial team will include 5 team members. Future expansion in the future may include outside sales, trade show team, local delivery, maintenance, and a human resource team.
William will manage the warehouse, green coffee bean importing, and roasting operations and Shannan will handle sales/marketing until a team is hired, fully trained and promoted.
Financial Plan
Forecast
Key Assumptions
The financial plan depends on important assumptions. The key underlying assumptions are: •427 Coffee assumes a slow-growth economy, without a major recession.
•427 Coffee assumes of course that there are no unforeseen changes in public health
perceptions of its general products.
•427Coffee assumes the nation of Burundi remains stable and can produce the
volume of coffee we need for sale within the US.
•427 Coffee assumes the commodity trading price for coffee will hold around $2.30/lb
Financing
What We Need
427 Coffee is looking for funding to design and equip our coffee roastery. 427 Coffee will self-
fund the cost of the initial container of coffee for $96,600.
The funding for 427 Coffee will go to 3 roasters (a sample roaster, a 15kg production roaster, and a 3kg roast to order roaster), production equipment (destoner, grinder, color sorter, color tester, etc), packaging equipment (racks, computers, printers, scale, k-cup sealer, nitrogen sealer, etc.), lab equipment (cupping equipment, brewers, counters, table, chairs, dishwasher, plumbing, etc.), office equipment (desks, computers, phones, etc.), warehouse equipment (warehouse racks, pallet stacker, pallet jack, etc.). Other expenses include initial wave of sample shipping (500gr samples to roasters, cafes, restaurants, etc.), buildout (offices, bean

storage, lobby, lab, etc.), 1 year of land leasing (to include no lease for first two months for buildout ), legal fees, package and label designs, wages (6 months for up to 5 team members), exterior design (logo on front wall and signing).
Start-up Expenses Legal $3,500
Office Equipment $5,000
Land Lease (1 year) $50,000
Roastery Buildout $75,000
Website Preliminary Development & Hosting $5,500 Identity/Logos/Stationary $4,000
Roast Equipment $100,000
Packaging Equipment $50,000
Warehouse Racks $15,000
Warehouse Equipment $12,000
Lab Equipment $20,000
Wages (6 Months) $125,000
Initial Sample Wave Shipping $10,000
Other $25,000
Total Expenses $500,000
Projected Profit & Loss (75% Container Turnover)
Revenue
In-House Sales Direct Costs
Gross Margin
Gross Margin %
Operating Expenses Salaries & Wages
Employee Related Expenses Rent
Insurance
Utilities
Loan Repayment
Phone / Internet
Marketing
2025 2026
$1,908,238 $2,544,318
$15,000 $18,000 $579.600 $772,800
$1,343,638 $1,789,518 70% 70%
$355,000 $500,000 $100,000 $150,000 $60,000 $60,000 $12,000 $12,000 $12,000 $12,500 $100,000 $100,000 $500 $500 $50,000 $75,000
2027
$3,180,398
$21,000 $966,000
$2,235,396 70%
$600,000 $175,000 $60,000 $12,000 $13,000 $100,000 $500 $100,000

Packaging Supplies Shipping
Total Operating Expenses Net Profit
Net Profit/Sales
$100,000 $100,000
$889,500 $454,138 24%
$150,000 $140,000
$1,200,000 $589,518 23%
$175,000 $180,000
$1,415,000 $819,896 26%
Revenue: Based on our projections of 50% green coffee, 30% wholesale roasted, 15% retail roasted, and 5% single-serve, and assuming we can only turn over 75% of a container. Green coffee is estimated at $6.95/lb, which is our large bulk price. Smaller 1kg, 2kg, 5kg, and 10kg bags will sell at slightly higher amounts. Wholesale roasted is estimated at $10/lb. Retail roasted is estimated at $14.95/12oz bag. Single serve is estimated at $1/pod. A single-serve pod contains 12gr of ground coffee.
In-House Sales: Lobby sales, revenue from cuppings/tastings, co-roasting hours. Lobby sales include sales from walk-in customers and sales from our cupping/tasting patrons. Cupping/tasting revenue is based on 2 sessions per week, with 10 patrons each at $10 per ticket. Co-roasting allows small roasters or qualified individuals to rent our roaster machines by the hour during our downtime.
Direct Costs: This is estimated at the current commodity price of $2.30/lb of coffee. Prices will vary depending on processing, shipping, and duty. Our aim is to be fair with the farmers, using fair-trade practices, and to train and work directly with the farmers in order to obtain the best quality that not only benefits 427 Coffee, but the coffee farmers and the nation of Burundi.
Salaries and Wages: This is estimated on being “fully” staffed in 2025. Our goal is to run the operations with 5 total team members and hire as needed as the business grows. Team members will be William (over warehouse/roasting operations), Shannan (over office operations), an experienced roaster, an experienced salesperson, and someone to run/maintain the warehouse/packaging. Additional team members would include 2 salespeople, marketing, and packaging.
Employee expenses: These include insurance, taxes, travel, training, and bonuses. William and the roaster will train at an SCA academy to receive their roasting and cupping certifications.
Rent: We are currently looking for a space between 3000-5000sqft with a loading dock for around $5000/month.
Insurance: Business related insurance. Utilities: Electric, water, trash, and natural gas.
Marketing: Mail, advertising, short ad video from Soza Bear Productions. The majority of our advertising will be digital, email, and social media.
Packaging/supplies: Boxes, tape, coffee bags, labels, etc.
Shipping: Shipping costs. 427 Coffee will offer free shipping for orders over a certain amount for roasted beans. 427 Coffee will offset some of the cost of LTL orders as needed.