Innovation

“I do remember we were in a small cafe in Cebu and we were thinking about how to grow the business model of the cafe and how to replicate the cafe that we wanted to target more directly from the supply chain, which is directly from the farmers. So, fast forward to opening a coffee shop in November 2019. We intended to open and just serve good coffee from the best farm in the world as a cafe, and then customers became friends, and friends became clients [who] had the same story of how we started as well. They got coffee, then opened their shops.” says Ed Visitacion about the innovative business model of Good Cup Coffee.

Good Cup Coffee’s unique innovation involves directly sourcing coffee from local farmers, ensuring an excellent quality supply chain. In late 2012, the founders of Good Cup Coffee began their first visit to their farmlands. The business noticed that local farmers were overlooked and underappreciated by cafes around the country. The situation inspired the company to take quality and operational processes seriously. By committing themselves to improving production quality, the company strengthens supplier and business relationships by evaluating coffee quality and addressing process inefficiencies in labor aspects. Ed Visitacion, Vice President of Good Cup Coffee, took a hands-on role in addressing coffee production inefficiencies and providing solutions. Gio Visitacion, founder of Good Cup Coffee, was the driving force in the search for knowledge and insights about coffee creation by exploring the coffee industry. The enterprise’s actions align with its fair trade value and farmer advocacy. They empower local agriculture and establish trust by partnering with local farmers.

Inspiration

"We are going back to our roots: helping coffee farmers, especially in the Philippines, to elevate coffee quality and boost productivity," bouncing back from the pandemic allowed Good Cup to reconnect with this mission. With the owners joining competitions, auctions, and training alongside the international coffee community, they bring back invaluable lessons for coffee farms in the Philippines. Good Cup started primarily importing coffee, but sourcing local beans had always been part of their vision: "We have been wanting to buy coffees from the Philippines way before." Once in Baguio, they were pretty new to the local scene and were given low-quality beans by a trader, so they wondered, "What if we do direct farm trades?" Since the goal of specialty coffee is to create good traceability and highlight the farmers more, they believed transacting with traders they didn't necessarily trust defeats the purpose of their direction- to serve good coffee.

"We want to impact as many people as possible through coffee." Good Cup is driven by this core principle for their customers, employees, and the origin of their coffee- the farmers. When they first visited a local farm in late 2020, they noticed: "You see farmers' names and faces in coffee shops, but most of them haven't tasted their coffee, and at the same time, their farms haven't been visited by any traders." Ed shares the dismay he felt realizing traders purposefully avoided educating farmers to stay in control- "the prices are in the hands of the traders." Ed explains that Filipino farmers often sit on goldmines and don't even know it. Their community visits have revealed generations of coffee farmers deprived of the knowledge and leverage they're entitled to, so Good Cup made it their mission to empower these communities. Good Cup has helped improve their quality and productivity by sharing their expertise on processing methods and hands-on support. Ed explains, "In terms of labor, we've saved a lot of effort – let's say 25 days trimmed down to just five days. That saves farmers huge amounts of time and money."

Around 2021, Good Cup was invited to Bukidnon, where they met a coffee farmer on the brink of giving up. It was their session that re-ignited the passion back to the farmer. From there, his dedication had grown. "We visited the farm- it was very promising. We helped him closely for the past two to three years. Just recently, in July 2023, he came first place [in a coffee competition] and was the youngest to do so in terms of farm industry years. He also holds the record for the most expensive coffee in the Philippines right now." He says, "We want to replicate that to other farms as well."

Overall impact

In a society where conscious consumerism is rising, Good Cup Coffee has emerged as a pioneer, reinventing the story of success with a sustainable twist. At the root of their success is a new approach: forging direct trade relationships with local farmers. This strategy increased supply chain transparency and strengthened business stability by avoiding unpredictable intermediaries or 'middlemen.' Partnering with skilled Filipino farmers led to a consistent supply of high-quality Philippine coffee beans, lowering costs and boosting revenue growth for the company. The company also enters Philippine coffees into local and international competitions, which has helped build the brand into what it is today, gaining worldwide recognition for Philippine coffee and offering quality that benchmarks against global standards.

The owners' steadfast approach in attracting investment and interest in the local coffee scene eventually opened up a valuable opportunity for Good Cup Coffee to expand internationally in the long term. Ed shares his visions for the Philippine coffee industry, "How I visualize it, the coffee growth in the Philippines will rapidly be as advanced as Thailand, or soon, if [attainable], Japan – to the point that we will be having our Small Cup of Excellence." He explains that the Cup of Excellence is an international body that holds coffee auction events and expresses his hopes for having one in the Philippines, wherein farmers worldwide would congregate and discover just how promising Philippine coffee is.

Good Cup Coffee makes it a point to invest in research and education after its founders learned that most Filipino farmers possess little ownership over the fruits of their labor and only practice tried-and-tested methods taught by previous generations. As Ed describes the country's current state, "Farmers, for the longest time, have been sitting in a gold mine, but they don't know how to mine it, and they don't see any value because they don't know how valuable it is." This statement emphasized the untapped potential of agriculture in the Philippines, particularly in the production of specialty coffee, and how educating farmers could bring growth to the industry.

Sharing knowledge with farmers on advanced processing methods through skills training, workshops, and competition exposure has improved yields and the quality of the coffee they produce. These sustainable practices have kept Good Cup Coffee running throughout the years, spotlighting coffee farming as a profession and reigniting the passion for future generations of Filipino coffee farmers.

Yet, the impact of Good Cup Coffee goes beyond business, as it extends into societal and environmental sectors. The economic benefits provided to local farmers create a ripple effect, increasing incomes and living standards in the communities they serve. At the same time, the company's commitment to educating farmers will revitalize agricultural activities, contributing to rural development. These benefits empower farmers and create strong relationships between urban consumers and rural producers, fostering a sense of community.

Environmental sustainability is a cornerstone of Good Cup Coffee's philosophy. Through their practices, the company actively reduces water and waste use at the farm level. Localized coffee sourcing significantly reduces carbon footprints through direct farm trade instead of foreign importations. This extends to promoting a wide range of sustainable agricultural practices, from effective waste management to biodiversity protection. The higher incomes that farmers receive from the company also ease the pressure on them to use environmentally harmful practices. Good Cup Coffee goes beyond farm to cup, uplifting rural communities through agricultural development, stimulating sector growth and preserving the terroirs home to unique coffee origins.

Business benefit

At its core, Good Cup Coffee is not just a brand but also a sustainable business that concretely uplifts the agricultural landscape of the Philippines through its day-to-day practices. They pride themselves as a dedicated partner eager to support the farmers they work with.

As such, the business frequently conducts onsite visits to share its knowledge and expertise with farmers. They continuously educate partners with new and innovative techniques to enhance the quality of their coffee.

"Coffee quality is tied up with coffee pricing. And the better the pricing is, the better the profitability for the farmers are."

As farmers improve their coffee quality, they increase profitability through higher market values and contribute to a mutually beneficial partnership with Good Cup Coffee. Other than facilitating competitive pricing for its products, this practice fosters a sustainable and prosperous ecosystem for coffee cultivation that benefits everyone involved.

Not only does Good Cup Coffee support farmers in terms of the quality of their coffee, but it also helps them streamline their creation process.

A tangible example of this collaborative effort is the reduction in the processing time for coffee. By sharing optimized techniques, Good Cup Coffee has successfully cut down the processing period it takes to create coffee, translating to valuable savings in time, effort, and financial resources for the farmers they work with.

"We were able to save a lot of effort because of how we help them process the coffees, let's say an effort of like 25 days, we were able to trim it down to five days of effort or labor from them."

Given this, their collaborative efforts not only enhance coffee quality and production processes but also cultivate a beneficial partnership that enriches both the farming community and the business itself.

Social and environmental benefit

Good Cup Coffee envisions transforming the Philippine coffee industry from an overlooked trade to a flourishing livelihood that supports farming communities. Founder Ed Visitacion aims to do so by partnering directly with growers and helping them realize they are "sitting on a gold mine."

The key strategy lies in eliminating costly intermediaries and paying premiums for quality beans. This strategy benefits farmers financially and incentivizes them to thrive within their crafts.

The impact of this initiative is evident through the story of a farmer who was on the brink of giving up. In a brewing session in Bukidnon, the farmer rekindled his passion for coffee and found renewed inspiration to continue cultivating it.

Ed shared that the brewing experience catalyzed the farmer's passion to pursue farming when he thought of giving up.

Following this, Good Cup Coffee collaborated with him for the past two or three years, and recently, in July, his coffee has become the most expensive in the Philippines.

Good Cup Coffee aims to replicate this model to continue positively impacting other farms. Ultimately, the business seeks to provide good quality coffee to its consumers and make a difference in the community through direct engagement with farmers and environmental stewardship.

Enjoying a cup of Good Cup Coffee isn't just an average sip but a toast to the journey of empowering farmers and contributing to the growth of the Philippine coffee industry.

Interview

Ed Visitacion, Vice President