ZEEMH mark-up on coffee price is on average 100% with the base cost to consider: green coffee cost, transportation, the cost for roasting (equipment, utilities and labour), cost to market and cost to deliver to a customer. 110000 26000 0 285000 208000 95000 25800 112000 261000 301000 0 50000 100000 150000 200000 250000 300000 350000 ESPRESSO -PREMIUM LINE DECAF -STANDARD LINE ONLY HORIZON STREET CUSTOMISED BLEND Coffee Sales B2B by Kg 2019 2018
ZEEMH BUSINESS PROFILE V3 1912 21 The cost structure is shown below: 24% 33% 7% 27% 9% Cost Structure Green beans including transportation Roasting/Production cost Logistics Business operations (outside production) Marketing and sales
ZEEMH BUSINESS PROFILE V3 1912 22 Market Data Local coffee houses occupy 87% of the marketplace in Australia, Vs 13% occupied by café’ chains such as Starbucks , Hudson an d Gloria Jeans. The Square Coffee Reports ( ) provides the following data: While a latte is still the most popular coffee choice across the country, our data showed that sales of flat whites have been steadily increasing, up by more than 22% since 2015, with cappuccinos and long blacks also increasing in popularity. The past two years have also seen a surge in popularity of coffees infused with cool new flavours, such as matcha and chai. From October 2015 to October 2017, there was a 120% increase in the sales of chai lattes and a whopping 360% growth in the matcha-infused brew. 2017 was the year that also saw more adventurous latte flavours introduced on menus across the country — including beetroot, taro and turmeric. While they all started to show signs of growth in 2017, the biggest spike was seen in turmeric lattes, more than doubling in popularity (120%) between April and July. 39% 24% 16% 8% 4% 4% 3% 2% What we consumed in 2017 Latte Flat White Cappuccino Long Black Hot Chocolate Mocha Iced Drinks Chai
ZEEMH BUSINESS PROFILE V3 1912 23 How much we pay for a cup of coffee (2017 data) The 2017 Square Australian Coffee Report shows us that customer demand and average spend can vary dramatically by state, as seen by latte drinkers in the Northern Territory who spend on average almost $1 more on their beverages than those in New South Wales. Across the country the most expensive coffees were of the iced variety, with people spending more than $5 on iced coffee in every state. While Aussies were also spending more on mocha and chai, the cheapest coffee across the board was the traditional long black, the only coffee with a national average transaction value less than $4. • 54% of people over 18 drink coffee • 64% of coffee is consumed during breakfast hours • 60% of Australians states that they need coffee to start the day 27 25 32 28 32 47 28 33 Most consumed coffee by state % Flat White Latte
ZEEMH BUSINESS PROFILE V3 1912 24 Positioning Map: The typical B2C customer for quality coffee: Zeemh positioned itself in the coffee speciality end, focusing on the experience of great coffee. Customers are no longer satisfied with just a quick caffeine
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