Estate Coffee Holdings Corp. (ECHD): Taking Over China, One Coffee At A Time

Estate Coffee Holdings mission is to become a significant participant in the global coffee industry. The business model and strategy is to take an ownership role in all aspects of bringing coffee to market, thereby capturing margins at each step from; coffee production and purchasing; processing; exporting; roasting and; direct consumer sales.

The vision of Estate Coffee Holdings is to create a positive social impact in the coffee industry. Estate Coffee Holdings has plans for growth in various coffee producing countries by having an active ownership role through acquisitions and joint ventures at all stages from tree to cup. The business model allows itself to be duplicated in any country where these fine coffees are grown, creating a socially responsible and viable coffee company.

The first entry into this market has been the successful acquisition of a 20% interest in a coffee roasting operation in China. Though traditionally tea drinkers, the Chinese are quickly adopting the same thirst for fine Arabica coffee as experienced in Western culture. Many new shops have sprung up in China in recent years, servicing the changing tastes of China’s 1.3 billion population. It is for this reason that Estate Coffee Holdings has entered this market to capitalize on the limited market saturation when compared to North America and other Western markets.

Estate Coffee Holdings (ECHD) Profit Margins and Diversification

The business model is unique, in that the company plans to become a stakeholder in each phase of bringing coffee to the global marketplace. Profit margins and diversification are the key reasons behind this strategy as typically these coffees carry the highest premium price because there is limited supply and huge demand.

For example, green bean coffee sold on commodities exchange can range from $1.10 to $1.85 per pound. Once roasted and packaged, this coffee hits the retail market ranging from $7.00 to $14.00 per pound. This is for your daily, average variety type of coffee.

The gourmet and specialty coffees sell for much higher premiums. Go into your favorite supermarket right now and check out their gourmet coffees. You will see varietals from Guatemala, Costa Rica and other countries offered at $6.99 and $7.99 per 100 grams. That equates to over $30.00 per pound roasted! In being a strategic partner with the landowners, we can source these coffees for less than $3.00 per lb, making exceptional margins at each step in the distribution chain. That is:

1. as a producer of coffee beans
2. as a purchaser of fine coffees direct from farmers
3. as a processor
4. as an exporter to wholesale and retail customers
5. as a roaster for value added
6. as a retailer to consumers

We are eliminating all middlemen and capitalizing on margins of 40 to 100% at each stage of bringing coffee to market.

This business model can be initiated in every coffee producing country in the world such as Columbia, Guatemala, Costa Rica, Jamaica, Indonesia, Papua New Guinea and Panama to name a few. By targeting these high profile, high demand coffees, it is expected the company will also gain a high profile in the business and investment communities.

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Latest News:

Estate Coffee's Chinese Partner Offers "Drink DTS8 Premium Coffee" Which Is on Sale at Shanghai 2010 World Expo

CALGARY, AB, May 06, 2010 (MARKETWIRE via COMTEX) -- Estate Coffee Holdings Corp., a vertically integrated specialty coffee company, announced today that its Chinese partner, DTS8 Coffee (Shanghai) Co., Ltd., through its distributor Bake & Co. International Trading Co., Ltd is selling DTS8 Premium Selection "DTS8 Red," "DTS8 Blue" and "DTS8 Espresso Classic" coffees at several Pavilion restaurants at the Shanghai 2010 World Expo. Bake & Co. International Trading Co., Ltd was a supplier to the 2008 Beijing Olympics both for the athletes' village as well as the General Electric, Omega, Volkswagen, Johnson & Johnson and NBC pavilions.

At a welcoming dinner for foreign dignitaries April 30, 2010, Chinese President Hu Jintao voiced confidence of Shanghai hosting an "unforgettable" World Expo, which he said would bridge China and the world. As the first registered World Expo hosted by a developing country, the Shanghai Expo will be "an opportunity for China and also for the world," Hu said. Shanghai 2010 World Expo runs from May 1, 2010 to October 31, 2010. It is expected to attract over 70 million visitors during this period. A record number of 189 nations and 57 international organizations participate in the Expo in Shanghai, China's business hub. http://en.expo2010.cn/ses/indexn.htm

Estate Coffee Holdings owns a 20 percent interest in DTS8 Holdings Company Ltd., through its wholly owned subsidiary, Estate Coffee Holdings Ltd. DTS8 Coffee (Shanghai) Co Ltd., a subsidiary of DTS8 Holdings Company Ltd., is a roaster and marketer world-wide of "DTS8 Premium Selection Coffee," "San Francisco Premium Selection" and "Single Origin Premium Selection," brands of roasted coffees. These coffees are artisan roasted in Shanghai, China.

Estate Coffee Holdings owns a 20 percent interest in DTS8 Holdings Company Ltd., through its wholly owned subsidiary, Estate Coffee Holdings Ltd.

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