Future Business Development Plans 2015 - 2025 Tanna Coffee Future Business Development Plans 2015 - 2025 Compiled by Terry Adlington , Managing Director Tanna Coffee Development Company Pty Limited P.O. Box 1531 Port Vila Vanuatu (678) 23661 E- coffeevanuatu@gmail.com 1st February 2018

Purpose of the Business Plan Tanna Coffee Business Development Plan Purpose of the Business Plan To assist Tanna Coffee (TCDC) in undertaking its Recovery and Rehabilitation following the devastation of Cyclone Pam To provide direction and future regional development plans for the Company to expand, as the production base grows To research consumer trends, customer requirements, new packaging and service within the local and regional markets To firmly establish Tanna Coffee in the South Pacific region as a serious competitor to other international coffee brands

Recovery & Rehabilitation Tanna Coffee Business Development Plan Recovery & Rehabilitation Tanna Is.was hit by Tropical Cyclone Pam. 330,000 coffee trees were destroyed &165,000 trees were rehabilitated to knee-high. Production was reduced from 100ton to 8ton.

Tanna Coffee Business Development Plan Recovery & Rehabilitation Private Equity Impact Investment Funding was secured through The Difference Incubator (TDi) & Genesis Fund facilitating a complete Recovery & Rehabilitation Program with over 250,000 coffee seedlings propagated & planted.

Recovery & Rehabilitation Tanna Coffee Business Development Plan Recovery & Rehabilitation A Smallholder Farmer intercropping regime was developed with the coffee recovery program, providing a good source of highly nutritional food & essential value-addition income.

Local Coffee Developments: Tanna Coffee Business Development Plan Local Coffee Developments: TCDC Estate re-development - Raw coffee production has increased to around 50tpa, vegetable production still grows for the local market. Commercial kava production is being planted, along with Sandalwood and Vetiver Essential Oils.

Tanna Coffee Business Development Plan Local Coffee Developments: Smallholder development continues on Tanna and Organic Certification for 1,000 farmers occurs. Tanna Coffee opens a Tourism Facility encompassing a central Coffee Processing Factory & Essential Oil Distillery, to find new income sources

Regional Coffee Developments: Tanna Coffee Business Development Plan Regional Coffee Developments: In order to cater for future annual production increases, new markets must be established within the South Pacific region Fiji, New Caledonia, Solomon Islands, Samoa, Australia and New Zealand were obvious choices & marketing has begun. Over 500Kg per month is currently being shipped to Fiji, with plans to expand & develop the Hospitality & Tourism market Plans are also in place to enter the New Caledonia market as well, with Government Trade facilitations currently underway New Zealand agents are now established & discussions held in Australia with several different groups aimed at distribution There are continuing sales happening to Samoa and a proposed visit to the Solomon Islands will occur soon.

Consumer Trends/Customer Service Tanna Coffee Business Development Plan Consumer Trends/Customer Service Through analysing international consumer trends and in order to stay ahead of competitors,Tanna Coffee recently embarked upon production of ‘Nespresso Compatible’ coffee capsules. Careful consideration was taken in regards to this new market and enormous amounts of testing and tasting was undertaken before a final decision was made to proceed with this venture. Bio-degradable capsules were selected to ideally complement our Organically Certified coffee and the capsules are delivered through Swedish designed capsule machines, that are ideally suited for your home or office. They are now available at Tanna Coffee Central Processing & Roasting Facility, along Mele road, just out of Town.

Regional Market Consumption Tanna Coffee Business Development Plan Regional Market Consumption Australia - Home 0.5 Kg - Producers 200 (approx.) 300 tpa (2 Kg/capita) - Restaurant / Café 1.3 Kg - Processors 150 (approx.) 36,000 tpa - Tourism 0.2 Kg New Zealand - Home 0.3 Kg - Producers Nil - (1.5 Kg/capita) - Restaurant / Café 1.0 Kg - Processors 40 (approx.) 10,000 tpa - Tourism 0.2 kg New Caledonia - Home 1.0 Kg - Producers 10-20(approx.) 20 tpa (3.5Kg/capita) - Restaurant / Café 2.0 Kg - Processors 5 (approx.) 500 tpa - Tourism 0.5 Kg Fiji - Home 0.0 Kg - Producers Nil 10 tpa (0.2Kg/capita) - Restaurant / Café 0.1 Kg - Processors 2(approx.) 350 tpa -Tourism 0.1 Kg Samoa -Home 0.3 Kg - Producers 4-5 (approx). 10 tpa (0.5Kg/capita) -Restaurant / Café 0.2 kg - Processors 2(approx.) 100 tpa Solomon’s -Home 0.0 Kg - Producers 40-50(approx.) 5tpa (0.1Kg/capita) - Restaurant / Café 0.1 Kg - Processors 1 25tpa

Key areas to be covered are:- Tanna Coffee Business Development Plan Target Market and Sales Opportunities In Conclusion, regional target markets & sales opportunities are fairly obvious, but the regional competition can be quite fierce. However, with an absolute top quality product, latest international packaging and professional sales & marketing campaign, entry into these lucrative markets is available. Key areas to be covered are:- Wholesale - Sales Agents & Local Distributors Retail Sales- Supermarkets / Shops / Duty Free Stores Hospitality/Tourism – Airlines / Hotels / Resorts / Restaurants / Cafes However, the following areas are to be seen as priorities:- Processing – Top Quality Roasting, Processing & Packaging Wholesale - Smart Marketing, Sales Presentation & Distribution Hospitality/Tourism- Professional Service Delivery & Promotion

TANK YU TUMAS