Today, we visited Cafe Britt, a coffee roaster under the umbrella of Grupo Arribada, which includes several other companies that focus on tourism, chocolate, and coffee shops. From the data in a marketing presentation, we learned that Cafe Britt focuses on attracting tourists to their products, and therefore the majority of Ticos don’t buy it. I think this is the case because of Cafe Britt’s emphasis on “Gourmet” coffee. Cafe Britt wants to market their coffee as a premium product, which attracts the business of non-coffee-producing countries like the United States and Japan. Countries like this have a high socioeconomic status, and therefore can afford to buy premium Costa Rican coffee. The demand for premium coffee in these countries drives the price up and makes it undesirable to Ticos wanting a cup of coffee. Ticos will be more likely to buy “Pure” coffee, which is of less quality than “Gourmet” but much cheaper. This means less Ticos will buy from Cafe Britt and find another company selling “Pure” coffee. Since coffee is not Cafe Britt’s most popular product, I would think that their tours are the most popular as they put a big emphasis on customer experience.
In the making process of coffee, Cafe Britt picks up where Doka Estates finishes. Cafe Britt acts as a manufacturer in the coffee supply chain, buying raw beans from Doka Estates (or now owning Doka) and other companies. They take the raw beans and roast them to produce various types of coffee. Because Cafe Britt must buy the beans from somewhere, this means Doka Estates and similar businesses act as suppliers. These companies provide the raw materials necessary for a manufacturer to make a product; the raw material is coffee beans in this case.
Considering the making process, Cafe Britt does a few things to make their business financially strong. One of these ways is through the acquisition of Doka Estates. By vertically integrating the growing and manufacturing, Cafe Britt now has more financial stability. They no longer have to worry about sourcing beans as a fair amount can be produced on their newly acquired land. This means they have more control over what beans they use, allowing Cafe Britt to make a very high-quality product. Another way that Cafe Britt is financially successful can be seen through the several types of coffees they offer. By offering many levels of roasted coffee beans, Cafe Britt attracts customers that like all different kinds of coffee, ultimately making them financially strong. This expansion of operations can also be seen in the various countries Cafe Britt operates in. In each country, Cafe Britt makes unique products for their shops in each country. This allows for a more local and personalized business, one which attracts more customers from the respective countries. I generally agree with all of the strategies Cafe Britt uses regarding the making process. I think the vertical integration contributes to a lot of stability from a quality standpoint. Personalization and making the customer feel welcomed is always helpful. The only thing I fear is the mechanization of Cafe Britt. When acquiring Doka Estates, they seemed to indicate the water mill would not be used. To me, this takes away from the uniqueness and charm of Costa Rican Coffee. The process becomes too industrial.
