1. purveyors of exceptional quality specialty-grade coffees
BD Imports, Inc.
14 April 2017
DRAFT PRESENTATION (EDITING FOR CONTENT)
7/25/02 2:09 PM
The word premium was incorrectly used on our first brochure. In the coffee industry, premium is a grade of coffee that falls below specialty grade.
We can be described as a supplier of “exceptional quality” specialty grade coffee
Company name should be written as BD Imports, Inc. not as an Inc. as stated on the color band on the bottom of each page.
purveyors of exceptional quality specialty-grade coffees

2. agenda A Closer Look At Coffee
BD Imports, Inc.
14 April 2017
agenda
A Closer Look At Coffee
From the Crop to Your Cup: the Kenya Road
Kenya, Coffee and the World
Selecting the best for BD Imports
Notes:
A suggested draft show agenda, based on our understanding your outline and purpose. We’re thinking that going forward, this draft/show will become a standard “general capabilities” presentation for bd imports management’s use where-/whenever. The draft follows this agenda.
Very good start: I would prefer to start the presentation out with
A brief overview of Kenya.
Information about the country:
Kenya
Located on Eastern African coast
Independent country since 1963
Population: approximately 30 million
Capital city: Nairobi
Two main languages: Swahili and English
Agricultural products: Tea, coffee
Soil: Volcanic
The slide “Where Coffee Grows” is nice and can be used in this section. However not the topic of the section, audience more sophisticated.

3. a closer look at coffee The Business of Coffee in the US
BD Imports, Inc.
14 April 2017
a closer look at coffee
The Business of Coffee in the US
Where Coffee Grows
The World of Kenyan Coffee
Botanical Species
Grades
Crops: Growing Seasons, Regions & Harvest
Notes:
A suggested draft show agenda, based on our understanding your outline and purpose. We’re thinking that going forward, this draft/show will become a standard “general capabilities” presentation for bd imports management’s use where-/whenever. The draft follows this agenda.
Very good start: I would prefer to start the presentation out with
A brief overview of Kenya.
Information about the country:
Kenya
Located on Eastern African coast
Independent country since 1963
Population: approximately 30 million
Capital city: Nairobi
Two main languages: Swahili and English
Agricultural products: Tea, coffee
Soil: Volcanic
The slide “Where Coffee Grows” is nice and can be used in this section. However not the topic of the section, audience more sophisticated. 

4. the business of coffee in the US
BD Imports, Inc.
14 April 2017
the business of coffee in the US
Second largest US import, after petroleum
Two types
Robusta
National brands, e.g. Folger’s, Maxwell House
Arabica
Specialty coffee houses, e.g. Starbucks, Peets
Imported from more than 80 different origins
Fewer than 100 US-based importers of specialty-grade coffees
Notes:
Are there additional facts/figures of relevant interest to highlight on this slide/section?
Re bullet 4: here, we’re looking for facts to distinguish bd imports from its peers, again in terms of general capabilities; the sub-bullet is only a suggestion of the type of fact we have in mind.
Suggest: Renaming the slide to “The Business of Coffee in America”
Second largest US Import after oil,
Not really an opportunity here for differentiation. General info slide that will be used with investors or lenders.
Delete last bullet 

5. where coffee grows  The Americas The Middle East East Africa
BD Imports, Inc.
14 April 2017
where coffee grows
The Americas
The Middle East
East Africa
Southeast Asia 

6. kenya—botanical species
BD Imports, Inc.
14 April 2017
kenya—botanical species
Five different botanical varieties
K7- older plant
SL28 – older plant
SL34 – older plant
Ruiru 11- newer more pest resistant, higher yield
Blue Mountain
NB: We can put this information in table form as well. 

7. grades of kenyan coffee
BD Imports, Inc.
14 April 2017
grades of kenyan coffee
Up to 8 different grades of coffees marketed
Largest bean size (7.20 mm screen); highest prices Smaller bean size (6.20 mm screen); good prices
Smaller than AB
Light, ragged beans separated from other grades
“Elephant”—two beans joined together
Grows as one bean in a single cherry; 10% of crop
Smallest, thinnest beans; chipped, broken, flawed
Not wet-processed, fell from trees; 7% of crop AA AB C TT E PB T
Buni 

8. BD Imports, Inc.
14 April 2017
marketing confusion
Brand names given to Kenya AA by exporters and/or importers
AA Top
AA+
AA FAQ
AA Minus
Private label name
Added slide 

9.  growing seasons 60% of total crop 40% of total crop jan feb mar apr
may
jun
jul
aug
sep
oct
nov
dec
main crop to auction
60% of total crop
harvest main crop
fly crop to auction
40% of total crop
harvest fly crop 

10. growing regions  Nyeri, Kirinyaga, Embu, Muran’ga
Location: from Slopes of Mt. Kenya N & NE
Altitude:1500m – 2100m
Varieties: SL28, SL34, Ruiru (>1.5%)
Rich volcanic soil
Main-crop coffees
20% of produce is top category 

11. growing regions  Meru Location: Slopes of Mt. Kenya
During 1987/88 coffee price recession, farmers abandoned crops 

12. growing regions Kiambu, Ruiru, Thika  Location: N/NE of Nairobi
Altitude: m
Rainfall: 1000m3
Climate: degrees C
Varieties: SL28, SL34, Ruiru 11
Typically, average main-crop coffees
Ruiru planted on a large scale will soon come to market 

13. growing regions Machakos  Location: Eastern Region
Altitude: m
Semi-arid climate
Early Crop coffees 

14. growing regions Makuyu, Donyo, Sabuk, Mitubiri 
Location: E/SE of Nairobi
Semi-arid climate
Early Crop coffees 

15. from the crop to your cup— the kenya road
BD Imports, Inc.
14 April 2017
from the crop to your cup— the kenya road
The Business of Coffee in the US
Purveying Specialty-grade Kenyan Coffee
The Market Today: Critical Times for Kenyan Coffee
From Crop to Cup: the Kenyan Road
Our AA From Kenya to Consumer
Notes:
A suggested draft show agenda, based on our understanding your outline and purpose. We’re thinking that going forward, this draft/show will become a standard “general capabilities” presentation for bd imports management’s use where-/whenever. The draft follows this agenda.
Very good start: I would prefer to start the presentation out with
A brief overview of Kenya.
Information about the country:
Kenya
Located on Eastern African coast
Independent country since 1963
Population: approximately 30 million
Capital city: Nairobi
Two main languages: Swahili and English
Agricultural products: Tea, coffee
Soil: Volcanic
The slide “Where Coffee Grows” is nice and can be used in this section. However not the topic of the section, audience more sophisticated. 

16. purveying kenyan coffee— the Kenyan Coffee Auction
BD Imports, Inc.
14 April 2017
purveying kenyan coffee— the Kenyan Coffee Auction
All Kenyan coffee sold at auction on Tuesday mornings by authorized marketing agents
±100 licensed buyers/exporters
Buyers get samples 10 days prior to auction
Notes:
Re slide title: Is there an insider name or nickname for the Coffee Auction?
Here, relevant/compelling details of the auction process itself. Suggestion:
How many exporters from how many countries are routinely present/buying?
The title: Purveying Kenyan Coffee: “ The Kenya Coffee Auction”
The auction is simply known as “The Kenya Coffee Auction System”
All Kenya coffee is sold by Millers, in Nairobi, through an auction system; practically every Tuesday morning.
There are approximately 100 licensed buyers/exporters
Small samples are given to buyers 10 days prior to the auction.
We cup the coffees to determine if these are coffees we would like to buy.
Show pictures of auction room, kenya_coffeeboard.jpg
And kenya_auctionroom01.jpg
Add photo of Kenyans in cupping room, lots of bags and cups on table, sent in zip file. This was sent quite a while back, more recently than 7/20. 

17. from the crop to your cup— the kenya road
BD Imports, Inc.
14 April 2017
from the crop to your cup— the kenya road
7 changes of hand within country of origin
Farmer
Cooperative Society
Miller
Exporter
KENYA
3 – 9 months*
Union of Cooperative Society
Marketing Agent
Auctioneer
Notes: Plays as two slides
Could you show pictures that would start with farming pictures,
Processing, pictures, mills etc, harvesting, and end with the front door to the customer Intelligentsia,
All of these photos were included in sent 7/20 Here’s the 2 that involved this one particular customer:
Labeled as:
DSC01344
DSC01365
* Relative to crop and conditions 

18. from the crop to your cup— the kenya road
BD Imports, Inc.
14 April 2017
from the crop to your cup— the kenya road
7 changes of hand within country of origin
KENYA
Farmer
Cooperative Society
3 – 9 months*
Union of Cooperative Society
Moves coffee from Nairobi to port of Mombasa via rail or truck
Loads 44,000 lbs (300 x 132-lb bags) onto steamship container
Prepares appropriate documentation for US Customs
Certificate of Fumigation
Bill of Laden
Certificate of Origin
Commercial Invoice
Phytosanitation Certificate
Miller
Marketing Agent
Auctioneer
Exporter
Exporter
Notes: Plays as two slides
Could you show pictures that would start with farming pictures,
Processing, pictures, mills etc, harvesting, and end with the front door to the customer Intelligentsia,
All of these photos were included in sent 7/20 Here’s the 2 that involved this one particular customer:
Labeled as:
DSC01344
DSC01365
* Relative to crop and conditions 

19. from the crop to your cup— the kenya road
BD Imports, Inc.
14 April 2017
from the crop to your cup— the kenya road
7 changes of hand within country of origin
KENYA
Farmer
Cooperative Society
3 – 9 months*
Union of Cooperative Society
Miller
Marketing Agent
Auctioneer
Exporter
Notes: Plays as two slides
Could you show pictures that would start with farming pictures,
Processing, pictures, mills etc, harvesting, and end with the front door to the customer Intelligentsia,
All of these photos were included in sent 7/20 Here’s the 2 that involved this one particular customer:
Labeled as:
DSC01344
DSC01365
* Relative to crop and conditions 

20. from the crop to your cup— the kenya road
BD Imports, Inc.
14 April 2017
from the crop to your cup— the kenya road
7 changes of hand within country of origin
KENYA
Farmer
Cooperative Society
3 – 9 months*
Union of Cooperative Society
Miller
Marketing Agent
Auctioneer
AND
Up to 4 changes of hand before arrival in US
Exporter
CONSUMER
3-4 weeks
Importer
Distributor
Roaster
Coffee retailers and distribution channels (e.g. restaurants, grocery stores)
* Relative to crop and conditions 

21. our AA from kenya to consumer
After auction, 10 lbs of each purchased lot from Nairobi
At departure, 10 lbs from port of Mombassa
On arrival, 2 lbs from our warehouse (CA/NY)
Our quality assurance process
We make sure that the coffee we get is the coffee we bought. 

22. kenya, coffee and the world
BD Imports, Inc.
14 April 2017
kenya, coffee and the world
Kenya and Coffee
The Market Today: Critical Times for Kenyan Coffee
Prognosis: Positive
Notes:
A suggested draft show agenda, based on our understanding your outline and purpose. We’re thinking that going forward, this draft/show will become a standard “general capabilities” presentation for bd imports management’s use where-/whenever. The draft follows this agenda.
Very good start: I would prefer to start the presentation out with
A brief overview of Kenya.
Information about the country:
Kenya
Located on Eastern African coast
Independent country since 1963
Population: approximately 30 million
Capital city: Nairobi
Two main languages: Swahili and English
Agricultural products: Tea, coffee
Soil: Volcanic
The slide “Where Coffee Grows” is nice and can be used in this section. However not the topic of the section, audience more sophisticated. 

23. kenya and coffee Coffee represents 20% of Kenya’s exports
BD Imports, Inc.
14 April 2017
kenya and coffee
Coffee represents 20% of Kenya’s exports
2000/1: 1.2MM 60K bags = ksh 10.2bb
2001/2: imports up marginally
Coffee employs ±250,000 Kenyans
60% small scale growers
40% plantations
Coffee production presently in decline 

24. kenya—export trade matrix
BD Imports, Inc.
14 April 2017
kenya—export trade matrix
Kenyan Coffee Exports (60-k bags)
Germany 387, ,018
Netherlands 137, ,129
Belgium 98, ,990
Sweden 86, ,158
UK 66, ,305
US 63, ,713
Importer
2000
2001 

25. the market today: critical times for kenyan coffee
BD Imports, Inc.
14 April 2017
the market today: critical times for kenyan coffee
MY 1999/ 2000
MY 2000/1
MY 2001/2*
MT produced
MT produced
50% decline
MT estimated
marginal increase
Source: GAIN Report, US, NB: MY = market year, MT = metric ton 

26. the market today: critical times for kenyan coffee
BD Imports, Inc.
14 April 2017
the market today: critical times for kenyan coffee
Low farmer morale
Poor market prices
Seedling prices rose from ksh 10 to ksh 201 —small farmers can’t afford new plants2
Reasons for production decline
Ongoing national coffee reforms
Kenya Coffee Act (April 2002) completes first phase of liberalization of coffee industry; seen as promising
Exceptional-quality Kenya AA will be more prized and more rare in the future
1 USD 1 = ksh 78
2 Source: GAIN Report, US, 2002 

27. 2002/3—a positive prognosis
BD Imports, Inc.
14 April 2017
2002/3—a positive prognosis
2002/3: estimated production MT—up 20%
Good weather, improvements in husbandry and higher market prices all support high expectations
Prices USD/50K bag green: 1999/2000: USD /1: USD /2: USD 120
LAST WEEK >USD 200/50k bag
Investment ops in coffee farm inputs and value-adding equipment (coffee roasters, milling)
Stabex Funds have facilitated important strides at farmer level
10 April: EAFCA’s first internet auction fetched record price (Ueshima Coffee Co. of Japan; USD 453/50k bag)1,2
Very good slide, I wouldn’t change a thing on this one, information is right on.
Co-op Bank of Kenya Limited considering wiping out coffee farmers’ old interest (12-13% interest rate)
1EAFCA = Eastern Africa Fine Coffees Association. 2 Source: GAIN Report, US, 2002 

28. selecting the best for bd imports
BD Imports, Inc.
14 April 2017
selecting the best for bd imports
Our Eyes and Ears At Auction
Exceptional Kenya AA
Socioeconomically Responsible Coffee
The BD Imports selection process
Notes:
A suggested draft show agenda, based on our understanding your outline and purpose. We’re thinking that going forward, this draft/show will become a standard “general capabilities” presentation for bd imports management’s use where-/whenever. The draft follows this agenda.
Very good start: I would prefer to start the presentation out with
A brief overview of Kenya.
Information about the country:
Kenya
Located on Eastern African coast
Independent country since 1963
Population: approximately 30 million
Capital city: Nairobi
Two main languages: Swahili and English
Agricultural products: Tea, coffee
Soil: Volcanic
The slide “Where Coffee Grows” is nice and can be used in this section. However not the topic of the section, audience more sophisticated. 

29. our eyes and ears at auction
BD Imports, Inc.
14 April 2017
our eyes and ears at auction
Native-born, world-travelled professional
50+ years in Kenyan coffee industry
Represents BD Imports exclusively
Is a primary part of our direct link to source
Added slide
You may delete the other slide that was titled, Selecting the Best for BD imports. 

30. our strategy “Cost+profit” model vs “C-market” model
BD Imports, Inc.
14 April 2017
our strategy
“Cost+profit” model vs “C-market” model
Study auction reports to determine age of coffee
Sample coffees throughout the process
Purchase small auction lots from top growing regions
Purchase 95% Main crop coffees
Further sort lots at origin if necessary to remove broken/discolored beans, shells and chips
Added slide
You may delete the other slide that was titled, Selecting the Best for BD imports. 

31. our standards The real thing—as fresh as can be
BD Imports, Inc.
14 April 2017
our standards
The real thing—as fresh as can be
Within 1 week after purchase coffee leaves Kenya
No blending of lots
No re-naming of lots
We use Lot number and Cooperative Society name as per auction; eg, Lot 157/Mushagara-Kirinyaga
Added slide
You may delete the other slide that was titled, Selecting the Best for BD imports. 

32. exceptional kenya AA Mushagara/Kirinyaga 
BD Imports, Inc.
14 April 2017
exceptional kenya AA
Mushagara/Kirinyaga
132-bag lot fetched highest price at mid-March auction and was most sought-after by many aggressive buyers
Mushagara grown by cooperative society in Kirinyaga region on the slopes of Mt. Kenya
Altitude: m
Climate/ Rainfall: m3 per annum
Temperature: degrees C
Varieties: SL28, SL34, Ruiru 11(>1.5%)
Production: tons per annum 

33. the bd imports selection process
BD Imports, Inc.
14 April 2017
the bd imports selection process
Our buyer sends us a sample of each of the best exceptional AA crops
We send cupping samples to each of our clients, and we cup the same ourselves
We set purchase guidelines for buying fresh green beans based on the individual preferences and needs of our clients, and import them directly ourselves
Each shipment is warehoused for distribution in our facilities in CA and NY
Consistently and honestly purveying the best Kenya AA makes the BD difference.
The very best roast always starts with the very best beans.
Experiencing the best Kenya AA should always be like a safari in a cup.
bd imports believes 

34. BD Imports and you— a winning partnership
BD Imports, Inc.
14 April 2017
BD Imports and you— a winning partnership
Sole US importer of many distinctive crops of Kenyan AA
Larger importers shun smaller producers who can afford to devote time and attention to superior crops
Niche created for dedicated specialty importers while cornering specialty crops among few competitors
Competitive pricing model permits profit while not outpricing product
Quality is our object, not quantity
Purveyors of “socioeconomically responsible” specialty green coffees 

35. BD Imports, Inc.
14 April 2017
changing the world one cup at a time— socioeconomically responsible coffee
We view growers as an extension of our business, therefore also of yours
Specialty coffee imports provide vital means for sustenance and progress for small- to mid-size growers
Importing specialty produce means “giving back” to coffeegrowers directly, since much of the profit from export does not reach growers
Supporting specialty growers promotes clean agriculture and “quality over quantity” in export coffee
While bringing specialty Kenyan coffee to the world, we also bring the world to Kenyan coffeegrowers
Information is power 

36. summary  more individualized services
BD Imports, Inc.
14 April 2017
summary
More and larger roasters are discovering the quality difference BD offers
Direct link to origin
Solid relationships with buyers and growers of our product assures supply and integrity
Socioeconomically responsible product and practices
Specialty coffee attracts exceptional clients, like ours and yours
more individualized services
expanded focus of target imports
bd imports’ forecast 

37. BD Imports, Inc. THANKS YOU!!
14 April 2017
THANKS YOU!!

38. BD Imports, Inc.
14 April 2017

39. kenya coffee act Implemented April of this year
BD Imports, Inc.
14 April 2017
kenya coffee act
Implemented April of this year
Coffee Board of Kenya relinquished marketing to private agents (subsidiaries formed by millers, Mt Kenya farmers)
Kenya Coffee Producers and Traders Association to manage central auction system
MinAg has de-registered Nairobi Coffee Exchange and dissolved Coffee Farmers Bank
Careful implementation of reforms can reverse downward trend in production and marketing (industry image)
Great slide, information accurate .