Innovation

The business innovation behind Raw Coffee Company is their uniqueness as a company in the United Arab Emirates. The UAE has a tradition and a whole culture revolving around coffee. In fact, offering coffee to a visitor in the UAE is the embodiment of warm hospitality and tradition. There are tons of coffee shops and cafes in the UAE, however, there are only a handful of companies that offer 100% organic coffee beans, and most importantly certified ethically traded coffee and Raw Coffee is one of the first in the UAE. This innovation is in line with 2 UN goals; (1) No Poverty and (8) Decent Work and Economic Growth.

Raw Coffee focuses on 3 important pillars; 1) 100% organic coffee, 2) ethical fair trading, and 3) locally roasted coffee beans. As time progressed, the owner, Kim Thompson saw the importance of ethical fair trading. Raw Coffee is making sure to give the farmers that supply them with coffee beans their fair share of earning and that they are able to lead a sustainable standard of living.

Inspiration

The story started when the owners weren’t able to find quality coffee in the UAE. So, whenever they went back to New Zealand they’d bring beans to Dubai in their suitcases from their favorite roasteries. With that, RAW was born to fill the gap in the market and target the niche market for freshly roasted specialty coffee. Moreover, during the interview the owner, Kim Thompson stated that what inspired her to start the company was that she had ‘always loved coffee’ and was encouraged by many of her friends and family.

Overall impact

The short-term effects of the innovation are to provide the coffee bean farmers a secure wage and a sustainable standard of living. As for the long-term effects of the innovation, Raw Coffee contributions and activities has expanded fair ethical trading in the UAE. This is of great importance especially since, Dubai is preparing to the host the most sustainable event in the world; The World Expo 2020.

Also, according to the owner, the market in Dubai is emerging and is a good 5 years behind London. This helped the owners of the company to see clearly the growth of both the industry and the country.

Raw Coffee Company currently has 2% of the market, and they want to increase their share each year and even double it. To do that they are planning to concentrate on three elements which is their supply chain, staff, and customer service. The company is also hoping to start doing business in the UAE's Capital, Abu Dhabi, and then other Gulf countries. Their goal is to sell 200 million cups of coffee by 2028.

Business benefit

According to the owner of Raw Coffee Company, the coffee quality gets better and better each year when they buy coffee from the same farmer. That is because the company and the farmer form a good direct trade relationship, that is built on trust and communication.

The farmers listen to what the company asks for, and the company on the other hand listens to the farmer’s situation and never argue about prices. As the company understands that specific circumstances beyond the farmer’s hands, such as changes in weather, they still pay a set price for the coffee. As a result, the farmer can concentrate on growing the crop with peace of mind, without worrying about their wage.

Raw Coffee Company also entered a new market as they not only supply roasted coffee beans but now also sell imported espresso machines and all the equipment relating to coffee. Moreover, the company also opened an online platform for delivery to homes and offices in the UAE.

In addition, the company is expanding to a location 5 times bigger than their current location some time in 2018. They are upgrading their location to larger facilities to accommodate their growth.

Social and environmental benefit

Raw Coffee Company emphasis on trading coffee ethically and making sure that coffee farmers and families are getting their fair share of earnings and can make a sustainable living. In fact, the owner Kim Thompson makes sure that there is a direct relationship between the farmers and the company, that there is no broker or mediator in between. That is to ensure that the money is given directly to the farmers and not to anyone else. This gives the company traceability and allows them to verify and know exactly the source of their coffee beans and how they are processed.

The company’s owners would personally travel to the farmers home to build a direct trade relationship with the farmers. Raw Coffee works with the same farmer each year and is very considerate towards the farmer in terms of price in case of uncontrollable circumstances that are beyond the farmers hand such as droughts and bad weather. This created an effective relationship built on trust, as the farmers can concentrate on farming the coffee beans without worrying whether they will be able to earn their keep this year and feed their families since Raw Coffee would pay them their fair share nevertheless. The direct trade relationship helped the farmers obtain a secure source of income each year and helped improve their standard of living. This also allows their children a future by saving for education.

Interview

Kim Thompson, Owner/Managing Director