The FairWave Specialty Coffee Collective is seeking to expand in several markets in the U.S. by acquiring socially conscious, local coffee brands, according to Dan Trott, co-founder.
Trott, a longtime veteran of the CPG and beverage industries, describes FairWave as “a brew of distinct local brands united by our passion for local specialty coffees and experiences.”
Kansas City, Missouri-based FairWave recently acquired two Minnesota specialty coffee companies: Folly Coffee and Philtera Cold Brewed Coffee. They join the company’s growing roster of independently operated local brands, which include Spyhouse Coffee Roasters and Up Coffee Roasters, both in the Twin Cities area, and a handful of others in the Kansas City area, including Messenger Coffee Co., Ibis Bakery, The Roasterie Coffee Co., Black Dog Coffee House, and Filing Station Coffee Garage.
“FairWave looks for brands that align with our core values and principals, such as high-quality roasting, transparent coffee sourcing, and community-centered brands,” said Trott.
Coffee brands that FairWave has acquired include roasters, cafes, and wholesale and direct-to-consumer suppliers. These local companies are often at an inflection point, Trott said, such as plotting a new phase of growth or transitioning their business goals. The company seeks brands that have achieved some success, he said, and they typically have, or are approaching, $5 million in annual revenues.
Trott said FairWave brings economies of scale, financial and marketing expertise, and shared best practices to brands that join the Collective, allowing the local operators to focus on their roasting, retail and wholesale operations.
“We're always learning from each other and evolving to meet the unique needs of each local brand,” Trott said, noting that the company has no plans to consolidate its various local brand names.
“Consolidating brands is not the plan, nor is it a best practice,” he said. “We don't believe brand consolidation will enable growth, as we aim to keep brands local.”
FairWave seeks to introduce efficiencies into its local brand operations through supplier relationships and back-of-house systems and processes such as financial systems, human resources, benefits, food costs, digital marketing best practices and other areas, Trott said.
The brands that are part of the FairWave Collective are aligned around several fundamental principles, he said, including:
• A focus on local brands, local roasting, local marketing and a community-centered cafe experience.
• A transparent supply chain, including sourcing directly from coffee producers. FairWave’s coffee is sourced globally in nearly 20 countries, Trott said, and more than 85 percent is sourced through direct relationships. The beans are roasted locally.
• A focus on quality roasting and coffees. All of FairWave’s coffees score at least 80 points (deemed “very good” or higher) on the Specialty Coffee Association scale.
Trott said FairWave has identified 20-25 markets with underserved specialty coffee consumers, most in the Midwest region. The company plans to expand to two to five markets per year, according to Trott.
Related: Lavazza Opens Coffee Training Facility; Dave's Gourmet Acquires Le Bon Magot.