Brand News
17 January 2023
Volcanica Coffee: From Costa Rica farms to Amazon success
CEO Maurice Contreras shares the family-owned brand's journey.
CEO Maurice Contreras shares the family-owned brand's journey.
Twenty years ago, Maurice Contreras visited a coffee farm in Costa Rica during a family vacation.
He immediately recognized the difference between the taste and quality of the coffee being grown there with that of the United States, where the purpose was most often just to drink coffee to wake up.
“I realized that there was an opportunity to bring great tasting coffee from Costa Rica to the United States,” Contreras said.
He ended up writing a business plan on the plane home.
It was the trip that launched Volcanica Coffee. Today, the journey continues. The brand was onhand at the NRF Big Show in New York this week as part of the Consumer Products Showcase, highlighting breakout products. Volcanica, which is USDA Organic certified, was nominated by Amazon to exhibit.
In an interview with The Current, Contreras shared the steps that the brand took to grow over the years.
Contreras started the business as a part-time venture while he was working as a regional director at AT&T. Coffee was sold through the brand’s website. Volcanica imported coffees from Jamaica, Kona and Costa Rica. In the beginning, it grew each year, sticking with the plan he laid out. Eventually, it grew out of the garage. Then, it outgrew a co-packing relationship. Contreras decided to build a coffee plant. Now, it has a 12,400-square-foot roastery in Atlanta, with 20 employees.
With each step, Contreras said it was important to prepare and seek expertise. When a business function is new, doing as much research as possible can be a guide in unchartered waters.
What started from a family vacation is now a business with the whole family involved. His wife Diane Contreras is VP of sales. Contreras’ son Aaron is the director of coffee. Adriana, his daughter, is the director of operations. Contreras’ mother painted the original logo.
Today, the brand imports coffee from 40 countries. It has 150 different flavors, each originating from volcanic regions of the world. On Amazon, it is a top-15 coffee vendor. It also sells on walmart.com, and still sells direct through its website.. Contreras is aiming to work with brick-and-mortar retailers, as well.
In 2023, it is looking to expand its private collection of coffees. Several varieties are fermented, and mix in fruits such as mango and orange with the coffee.
“That’s the next wave of coffee that we’re seeing because the coffee tastes really good,” Contreras said. “It's a fermented coffee that has different flavors that you wouldn't find at a convenience store.”
Sometimes, Contreras returns to the original business plan. He can see the notes he wrote on the plane reflected in a business that continues to grow today.
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.