Red Roaster

- March 2003 – Gordon Green had been approached to expand both its wholesale and its catering operations

- LRR had strong brand awareness with 2 prominent retail coffee locations in London (Wortley village and Covent Garden Market) – and Gordon wanted to continue to build on this reputation.

- Company: LRR offered coffee, teas, gourmet beverages, breakfast, light lunches and snacks.

- - known for cozy atmosphere, good food and excellent service.

- Established in 1995 ( 8 years) in Wortley

- Wortley Village: business and retail area in Old South. Over 80 small businesses in Wortley. Wortley offered a unique blend of history, shopping and nature parks.

- Covent Garden Market: located in downtown London. Had numerous vendors offering the city's best selection of organic food, meats, ethnic foods, dairy products, sweets, flower and restaurants. It had an outdoor skating rink and hosted local art and cultural events indoors. LRR establish their retail operation here in 1999

- COFFEE INDUSTRY: retail coffee industry was not experiencing growth. The market for specialty coffee was estimated to grow at approx 10% per year over the next several years. The highest coffee beans must be roasted to their greatest flavor potential by skilled craftspeople and then brewed to well establish industry standards. Specialty coffees commanded a premium price in the market due to their superior quality and they also provided environmental, social and economic benefits to coffee producers. Coffee was the 2nd largest commodity based product after oil and was subject to uncertainty and price volatility. Canada source coffee from Colombia, Brazil, Guatemala, Mexico and Peru.

- Avg coffee drinker in Canada consumed 3 cups each day and 67% of adult Canadian drank coffee everyday.

- Most imp attribute to consumers was coffee with a consistent flavor. Consistent flavor was achieved when roasting operations had secured a steady supply of green beans. Companies were continuously investing in roasting technology to improve roasting process – resulting in higher quality final product. It was predicted that the complexity and power of roasting equipment would continue to evolve.

- Canadian consumers – busy lifestyles. 12% of coffee purchased in restaurant or take-out setting. Coffee industry had many drive through operations

- Retails MARKET: coffee shops evolved from quick drink outlets to trendy social meeting places. Atmospheres created to cater to customers' needs. Wide spectrum of competitors in retail market – from multinational corporations to family-run businesses and competition for market share was fierce. For many – establishing a niche market and building strong