In a normal roaster-importer relationship, the importer has made the decision to import a coffee, and then sells it to you on a "spot" or "forward" contract. If you receive the coffee and it differs from the provided sample, the importer must make it right. This is not the case in a direct-trade model. If the coffee arrives and isn't what you approved in your pre-ship sample, you have no recourse. This is one of the largest issues to consider before adopting a direct-trade business model. Unless your rela- tionships are rock solid with every step involved—including the producer, the mill that prepares the coffee for export and the exporter who sends the samples—you run tremendous risks in terms of actually receiving the quality you are expecting. I can speak on this subject with much authority, again having learned the hard way.
logo is full of challenges. The simple costs associated with travel are significant. The risks associated with sourcing and getting the coffee delivered are tremendous. And at the end of the day, unless you are very diligent, it might not get you the quality you're looking for. I still believe and am very committed to the business model we have adopted, as I personally believe it's the most sus- tainable one currently in play. Having said that, Transcend Coffee is largely a retail coffee roaster, so we can pass on the higher costs of our sourcing to our customers. If your operation services mostly wholesale customers, you need to think even more criti- cally about whether direct trade is right for you.
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hile the direct trade logo or label can provide some allure to your brand, the process behind the
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COURTESY OF TRANSCEND COFFEE/POUL MARK