Retail

The Third Wave

By By Tim Newcomb January 29, 2010

Creating
a local coffee brand with high-quality roasts is crucial for independent coffee
retailers, says David Morris, CEO of Sumner’s Dillanos Coffee Roasters.

Morris
decided to enter the world of roasting after quickly moving beyond the Buckley
espresso cart he opened in 1992. Now, he creates branded “coffee experiences,”
which include roasts ranked in the top three nationally by Roast Magazine in
the last four years. He says that melding traditional Italian roasting
techniques with current technology “coaxes the finest flavors out of each
bean.”

Along
with top-notch taste, Morris gives independents the support he never received.
Dillanos offers brand coaching to all its clients (75 percent of its roasts are
sold under the retailer’s brand), which helps them create a local experience.
“It is about the branding,” he says. “How it looks, everything the customer
touches, feels or sees. It’s an overall experience, of which coffee is a part.”

Dillanos
has cashed in on being from Washington. Its clients are located in all 50
states, range from small stands to 160-store chains and include, locally, Pacific-based
Big Foot Java, with more than 20 locations. Dillanos pulls in $20 million in
annual revenues. Across the country, building an intensely local brand is the
strategy to beating out the big boys.

But
Morris isn’t against Starbucks. He likes the stores and credits the company
with opening the door for independents. “We are all riding the coattails of
Starbucks,” he says. However, his focus now is beating them, with branding and
the “third wave” in coffee: high quality. “People are growing to love true
specialty coffee,” Morris explains. “Starbucks’ quality has declined and
allowed locals to compete.”

Morris defines
“quality” as a complex cup of coffee that gives customers “pause in their day.”
There is room for more independents that stress the local and quality coffee,
he says. Those two things create success.

Back to “In the Shadow of Starbucks”

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