BUSINESS PLAN
Boquete Coffee Estate
www.boquetecoffeeestate.com

This business plan is confidential, and is not to be shared, copied, duplicatedor transmitted.

CONTENTS
Executive Summary..............................................................................2
Mission Statement ...............................................................................4
Investment Target ................................................................................5
Critical Success Factors .......................................................................6
Guiding Principles ...............................................................................7
Our Values .........................................................................................8
Company Overview ..............................................................................9
Doing Business In Panama ................................................................. 13
Management Team ............................................................................. 15
Strategy ........................................................................................... 18
Products and Services........................................................................ 22
Chiriqui & Boquete ............................................................................. 25
Market Analysis ................................................................................. 26
Marketing and Sales .......................................................................... 31
Financial Plan ................................................................................... 32
Funding & Investment Opportunity ....................................................... 36

1 | Page
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

EXECUTIVE SUMMARY
Business Opportunity
BoqueteCoffeeEstateisacompany formed from a group ofcoffee professionals and businessexperts, who have come together toseize on a market opportunity tocultivate the Specialty Panama
Geisha coffee beans in Boquete,
Panama.
Geisha Coffee from Panama has a
growing demand worldwide and avery limited supply that will facecontinued restriction due to thelimitation of available land. We
have identified a unique parcel ofland that is perfectly suited for the
production of this high value, full
flavored, Geisha Coffee.
We
haveassembledahighperformance team to seize on thisopportunity and bring the proposed
coffee plantation to maturity in a
profitable manner.
Wilber Lamastus has produced
some of the best geisha coffee inthe world for the last 2 years. He
comes from a family who has beenin the Panama coffee industry forover 100 years.

2 | Page
www.BoqueteCoffeeEstate.com

The Hartmann family own andmanage coffee farms in Panama
which have consistently produced
some of the best coffees. They also
bring over 100 years of experiencein the Panama Coffee industry.
By identifying a unique parcel ofland, and securing the involvementof Panama coffee experts, we
believe that we have secured awinning investment opportunity.
The Boquete Coffee Estate has
been formed as a corporation andstructured to maximize investor
security and overall ROI. We willdevelop this land in order to bringworld class Green Geisha Coffee
Beans to market, and secure
returns for our investors.
We will also develop some of theland purchased into a resort to takeadvantage of the natural beauty of
the region, and the interest ofcoffee lovers looking to combine
travel with their passion for coffee.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

3 | Page
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

MISSION STATEMENTBoquete Coffee Estate believes intaking its coffee and its resort tothe next level by providing a worldclass, exquisite Panama Geisha
coffeeandcoffeeresortexperience. We will focus on the
production of high-end specialty
coffee known as Panama Geisha
coffee,The Boquete Coffee Estate resort
and coffee house will offer a
premium resort experience, withemphasis on the principles ofquality and sustainability, to ensure
our guests can enjoy the exquisite
natural surroundings of our private
nature reserve and coffee farm.

Our philosophy is to lead thespecialty
coffeeindustrybyembracing the new, reinventing theold, and preserving the coffee
culture and its traditions.
Our commitment is to maintain thehigheststandards
inquality,service,cleanlinessandtrustworthy business practices. We
will be monitoring every stage of its
coffee production process to its
eventual delivery.
Everything is created with intention
and balance. We honor nature andourrelationshipwiththeenvironment, we carefully plan andselect the layout of the farm, theworkers for planting and farming,and processing, up through delivery
to our client’s door.

4 | Page
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

INVESTMENT TARGET
Total investment opportunity will be$5.5 million.
Investors will own
common shares of Boquete Coffee
Estate, which will have 100%
ownership of the land, and all
infrastructure for a world classcoffee estate. This funding will
cover
all
costs
relatedtopurchasing
assetsandland,developing land, operating andmanagement costs necessary tobring the production of coffee tomaturity. We project that revenues
will begin in the fourth year, andclimb as production increases,
allowing us to reward investors
from the profits generated byoperations.

5 | Page
www.BoqueteCoffeeEstate.com

Profits
fortheinvestors
areprojected to start at 10% to 12%
return on the initial investment after
the 5th year, with significant upside
potential.
Once
built
and
in
operation, the farm is projected tohave an asset value significantly
higher than the total investment.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

CRITICAL SUCCESS FACTORSBoqueteCoffeeEstatehas
identified the four keys that will be
instrumental to its success.

project, the final production andintroduction of the coffee to theworld.

The first key to success is securing
a unique parcel of land required to
grow Geisha coffee. While Geisha
coffee can be grown in a broader
set of locations, the top flavors andquality come from a very uniqueandspecific
setting
involving
weather,elevationandsoil
qualities. We have the perfect land
to produce the perfect cup of coffee
and attract the highest price for our
product.

The third key is having control ofthe processing of the coffee toensure it is processed to bring out
the best flavor possible.
We willprovide our own on-site processing
plant designed specifically forprocessing specialty coffee. It will
be designed and run by our top
team
of
world
class
coffeeproducers. This allows us to havefull control of the process until thedried green coffee is shipped. This
also provides us with a low-costbenefit due to vertical integration of
production in house.

The second key is the team ofpassionate, top coffee producers.
Proven experience growing world
class
Geishacoffeerequiresspecialized skill far beyond the
production of commodity coffee.
We have been able to bring a top
coffee team in the world together on
this land. Both will be involved in
the creation of the farm, from thefirst planning stages, through all
the development stages of the

6 | Page
www.BoqueteCoffeeEstate.com

The fourth key is a team ofseasonedbusinesspeople
withexperience in real estate, agroforestry, construction, marketingand doing business in Panama.
These four critical keys are inplace, and ready to be brought tofruition using the investment funds.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

GUIDING PRINCIPLES
We have implemented the following
guiding principles as fundamental
beliefs to guide the execution ofthis business plan.

This way we can adapt to ensure
the business continually evolves
and improves, in order to remain
leaders in the industry.

Knowledge and skills: We believein bringing together the top people
from different sectors, with theknowledge, skills and experience tosatisfy the business needs. We
have brought together the talentrequired for planning, growing,
harvesting, processing, selection,
sales, as well as construction andmanagement for the resorts. The
team is involved in all aspects ofthe project for a fully integrated
coffee production farm and resort.

Involvement: We believe that we

Evaluation: We believe in using
our resources as efficiently andsustainably as possible, sharing
experiences
andworkingwithothers to maximize opportunities.
By developing a coffee estate
resort,coffeehouse,
coffeeprocessing facility and marketing
team, Boquete Coffee Estate ismore than just a coffee farm. We
will be listening and working in all
aspects of the coffee industry,
which
will
allow
us
to
see
opportunities and changes in theindustry, and thus, evaluate theeffects they will have on our farm.

7 | Page
www.BoqueteCoffeeEstate.com

need to collaborate with othercompanies, continually improve our
professional practice and thinking,and work with local community
groups to identify opportunities. We
believeinpreserving
theenvironment and helping the local
communities. Our holistic approachto the coffee farm will keep us
actively involved with industry
groups in order to be a leader in
specialty
coffeefarming.
By
engaging with the greater industry,
we hope to continually improve in
all areas of farming, processing,
cupping,coffeetourismandmarketing.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

OUR VALUES
Excellence: We pursue excellencein everything we do as a company,
and endeavor to improve ourselves
and our community. We search forways to deliver above and beyond,throughourunwaveringcommitment to teamwork, integrity,
accountability,
leadership,andcontinuous
improvement.
We
believe we can achieve excellence
as a world class coffee estate.
Teamwork: We believe that each
investor is a member of the team.
We believe in the team is united bycommon values and objectives.
Boquete Coffee Estate believes inconserving
naturalresources,
limiting our carbon footprint, andmaking the world a better place tolive in. Boquete Coffee Estate wascreated to meet the passion of a

8 | Page
www.BoqueteCoffeeEstate.com

community that shares these sameviews.
We believe that we can best
accomplish
ourobjectives
byfosteringateam environment,
united by our shared passion in thecoffee industry.
Accountability: We are committed
todelivering
exceptional,
consistent and transparent results
to our investors, and one another.
Thedevelopment
andimplementation of finance andaccounting controls will ensure
investingtransparency
andsuccess. We believe the best way
to reward our investors is toachieve ROI results that exceedindustry
expectations,while
growing our asset value to provide
lower risk to investors.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

COMPANY OVERVIEWBusiness Description
Boquete Coffee Estate is a wellstructured
specialty
coffeeinvestment opportunity.
We arefocusedon
growinghigh-end
PanamaGeishaCoffee,andprocessing it to dried Green coffee
beans, ready for the market.

center for Boquete Coffee Estate.
We will develop a strategy for theend distribution channels to ensure
we are always getting the top value
for the coffee we produce.

One of the keys to our success is tofind and acquire land that isperfectly situated to grow full
flavored coffee, which is quite rare.
The Geisha species grows at highaltitude, needs a rich volcanic soil
and the perfect set of weather
conditions.
This combination offactors produces award winningcoffee that commands a very highprice in the market.
In Panama, the Volcan Baru area in
Boquete has proven itself to havethe soil with the right components,
as well as the right weather
conditions. We have identified a 52
hectare parcel of land that isperfectly suited for growing award
winning coffee.
One of the other keys to success isprocessing the coffee beans. We
will be building a processing plantdesigned specifically to processes
and maximize the value of high-end
specialty coffee.
We have been able to attract top
coffee experts in Panama to work
with
us
on
developing
andmanaging
the
farm
and
the
processing plant. Coffee will be theprimary focus and the main profit
9 | Page
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Boquete Coffee Estate will also
have a resort on the land, which will
add branding and marketing value
to the coffee. The interior design ofthe resort will focus on projecting arelaxing atmosphere. Depending on
which investment level you choose,
you will have free stays at theresort for a relaxing time out on
yourcoffeefarm,
while
simultaneously learning about andenjoying an exceptional coffee
experience.

10 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Ownership and Legal Structure
The Boquete Coffee Estate S.A is a
Panama corporation that will be
owned
by
the
investors
asnominative(registered)shareholders.
It is a holding
company structured to maximize
profits and effectively manage tax
issues while maintaining control
and security for the investor group.
It will have a total of 11,000 shares.
It will have 100% ownership andcontroloftheland
holdingcompany,
75%
controlling
ownership of the coffee production
company and 48% ownership of theresort and tourism company. The
reason for this is to maximize
security, control and the value ofthe holdings owned by the investors
while still having an incentivized
coffee and resort team. The main
asset value is the land andinfrastructure, which will be 100%
owned by Boquete Coffee Estate,
S.A. shareholders.

The production company will have acontractual obligation to deliver
25,000 lbs of dried green coffee tothe investors before the 25% profit
incentive starts. That is about 50%of the projected total crop, so the
incentive is about 12.5% of the total
crop, as 100% of the costs comefrom the production and sale of thecoffee after the 25,000 lbs aredelivered to the investors. This
gives a top weighted incentive.
Below average performance will
end up with 0 incentive gain.
Average performance will have aminor profit incentive, and a large
incentive
todeliver
optimalperformancebythecoffeeproduction and management team.

The production company will be
responsibleforallfarming,
processing, and sale of the coffee.
This will be a separate company
that Boquete Coffee Estate will
have a controlling 75% ownershipof.
The
production
companywill
manageandpay
employees,
separatelyfromtheholdingcompany, which will own the land.
The coffee team and management
team will have up to a 25%
incentive
ownershipoftheproduction company.

11 | P a g e
www.BoqueteCoffeeEstate.com

The resort will have the mandate tohave a fixed number (about 700) of
free days available to the investors
based on their level of investment(or a pro-rated profit from the time
allotted to each investor). The goal
is to provide sufficient incentive to
Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

maintain a top rated, full-service
resort that can be enjoyed at nocharge to investors (for a limitedtime) while still generating enoughprofit from operations to keep aquality team running it. The coffee
team will also be a part of theresort, ensuring a quality coffee
experience to resort.

and infrastructure assets, and100% of the value-added gain as
the land is developed.
With thecoffee allotment the investors gaina solid and almost guaranteed basereturn of over 10% while giving astrong incentive to the coffee
production team to drive production
and profits beyond the base amount

The Resort will also sell some of
the coffee produced through retailat the coffee house in the resort.

which goes 100% to the primary
investors.

This ownership structure gives
investors full ownership of the land

12 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

DOING BUSINESS IN PANAMAThe Business Case for Panama
•

•

•

•

•

Growing Economy: Panama
has
had
unprecedented
growth over the past ten
years, and doesn’t show any
sign of slowing down soon.
2019 HIGHEST GDP PPP IN
South and Central America
28,810Has significantly lower taxes
than its neighbors in theAmericas, as well as lots of
incentives for small and large
businesses.
The infrastructure in Panama
City is the best in the region,in part thanks to the decadeslong U.S. military presence
here while the Americans ran
the Panama Canal
The geographical position of
Panama in the narrowest
point of the Central American
isthmusstrategicallyconnects the countries of the

13 | P a g e
www.BoqueteCoffeeEstate.com•

world especially those withcommercial activities in the
Atlantic and Pacific oceans.
The accessibility provided bythePanamaCanalcompetitively binds all global
markets,
mainlyAsia,
Europe, North and SouthAmerica.
There are 6 major ports

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

The main trade routes with traffic in
the Panama Canal are:
•
•
•
•

•

East Coast of U.S.A. and Asia
(Far East)
East Coast of U.S.A. andWest Coast of South America
Europe and West Coast ofSouth America
East Coast of U.S.A. and
West
Coast
of
CentralAmerica
Coast to Coast of U.S.A.

Logistically speaking, Panama’s
location is almost unparalleledglobally, which is important if
you’re looking to start a new
business. Panama has Central
America’s most active airport,with over 20 direct flights to the US,
and nearly 100 to cities acrossLatin America and the Caribbean
There are many incentives for new
businesses, and favorable laws to
help keep them sustainable throughtax code enforcement.
Panama Canal revenues totaled
2,513.2 million dollars in 2018,
8.5% more than the 2,316.3 millionof the previous year,
The transit of ships through theCanal, where about 6% of world
trade passes, came in 2018 at
13,692, 0.2 percent more than the
13,666 the previous year, indicatedpreliminary official data.
New high capacity locks upgradedin 2016 doubled canals capacity.

Latin American Countries by
GDP per capita PPP (2019)14 | P a g e
www.BoqueteCoffeeEstate.com

Panama is acountry,
andrepresent this.

business-forward
Panamataxes

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

MANAGEMENT TEAMManagement
Organization

Team

and

Boquete Coffee Estate is being led
by experienced business people
who bring both education and awealth of experience in business inPanama. They bring knowledge andperspective
from
years
in
agriculture,realestateandconstruction, as well as property
management and hospitality.
Our team consists of world leaders
in
high
end
coffeefarming,
production and sales, who have a
proven track record of bringing highquality coffee to market thatcommands a high price.

Wilfredo Lamasthus is the current
leader when it comes to Geisha
Coffee variety. He won the Best of
Panama Coffee in 2018 and 2019,and has produced the highest rated
coffee in the world.
He hasachieved the highest value per lb
for his coffee.
Wilfredo Lamastus’ love for estate
coffee is inherited from his family,that has been growing quality
Coffee successfully for more than
100 years in Boquete, Panama.
Lamastus
Coffeehas
beenconsidered a top quality coffee
producer for more than 100 years.
Wilfredo Lamastus is a founder oftheSCAP(Specialty
CoffeeAssociation of Panama), which was
founded due to the Coffee Crisis in
the 1996. Six Coffee Producers
came together in the areas Boquete
and the Volcan Candela with theidea of raising the profile ofPanama coffees on world markets.
Since then the SCAP has become
more prominent in coffee culture.
Wilfredo
Lamastus
has
beencrowned in two Geisha categories

15 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

during the Best of Panama Auction(2018 and 2019) (washed andnatural categories). He achieved
the highest score ever given.
In the 23rd auction of Panama’s top
coffee Wilfredo Lamastus achieveda record breaking price of $805 perpound. In 2019 he surpassed his
own score, setting a new record forbest quality of coffee in the world.

environmentallyfriendlyvision.
They will bring their knowledge andexperience in the coffee tourism
industrytocontributetothedevelopment of the resort project.

In the Green Tip Natural ASD
category Wilfredo Lamastus scored95.25 out of 100, which sold forover $1,000 per lb. He won in 2018with 93.34 points. He proved thatthe quality of Elida Estate Geisha is
real,
and
can
be
achievedconsistently.
The Finca Hartmann is a family-led
enterprise founded in 1940 by
Ratibor Hartmann Troetsch. His
children,RatiborJr,
Allan,
Alexander, Aliss and Kelly,eachperforms a different function in thegrowth, production and tourism of
the farm. The Hartmans are wellknown for their approach to growing
coffee: growing coffee in harmony
with the environment. Their vision
is to work together with nature,
work the land without destroying it.
They have also been a steadyproducer of award-winning coffee
that has made it to the Best of
Panama competition.
They areknown as the top coffee farmmanagement team in Panama.
These two world leaders in thecoffee industry are being brought
together in Boquete Coffee estate
on an outstanding piece of land tocreate a coffee farm that willachieve new levels of quality andproduction, while maintaining our
16 | P a g e
www.BoqueteCoffeeEstate.com

We
arebringing
these
land
resources and coffee talent underthe management of experienced
business leadership. This projectis being put together by Ricardo
Bronfenmajer and Jeff Duda. Bothhave been doing business inPanama for 15 years. Ricardo has
built
over
1
millionm2
ofconstruction in both residential andcommercial.
Ricardo and his
family have also been involved in
Cocoa farming for many years andcurrently lives full time in Panama.
Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Jeff Duda founded Panama Casa in
2002, which is one of the top
property management companies inPanama, and Premier Casa, aninternational property management
and real estate company that now
has branches in 4 countries in Latin
America.
JeffalsofoundedPanama Teak Forestry in 2004,
which has over 700 hectares ofmanaged agri-forestry land, and amill with over 4,000 m2 of wood
production.

17 | P a g e
www.BoqueteCoffeeEstate.com

Both business experts are familiarwiththechallenges
of doing
business in Panama and know what
is required to put together asuccessful team to achieve thebusiness goals, as well as a wealthof experience in agriculture.
Aspart of the organizational structure
the leadership and production teamwill have incentive ownership of
25% of the coffee production
company, which is a separate
company that will be responsible
for the growing, processing andsales of the coffee. It is 75% owned
and controlled by Boquete Coffee
Estate which is the master holding
company owned by the investors.
By combining experienced leaders
from
both
agriculture,andbusiness, we hope to bring thisproject to a successful completion.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

STRATEGY
Target Market and Locations
While the majority of the market forcoffee competes on price for coffee
as a commodity, we will be focusedon the high end, boutique coffee
buyers that search the world for thebest quality product.
We have found that whole green
bean buyers are likely to purchaseunique varieties, such as ours, andthen supply high end cafes, coffee
aficionados, and specialty coffee
home baristas.
Current demand for specialty coffee
drinks is rising, according to the
Small
Business
Development
Center, and we believe this trend
will continue into the future.
Coffee culture has been growing,
and these people are searching theworld for unique, hard to find coffee
experiences.
Many
of
these
cultures can be found in North
America,
Europe,andsomecountries in Asia, such as China,
South Korea, and Japan.
Currently, demand far outstrips
supply, and high end coffee, suchas Panama Geisha Coffee, is highly
sought after by boutique buyers,
and we believe that marketing andselling our product for a high pricewill be achievable as there aremany buyers available in themarket.

18 | P a g e
www.BoqueteCoffeeEstate.com

Business Development TimelineYear 1: Raise funding work for
infrastructure
and
farm
plan.
Obtain quality seeds and develop
thenursery.
Developtheprocessing area plan and the resort
plan.
Year 2: Plant coffee, sell resort
units and cabins. Develop and start
construction on the resort andprocessing area.
Year 3: Manage the farm. Open theresort for guests and owners. Startbringing
intheprocessing
equipment.
Year 4: Manage the farm andresort. There should be a small

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

production of coffee to process inthe first year of production.
Year 5: Harvest, process, and sellcoffee. The production of coffee
increases each year from year 5 toyear 8 as the coffee plants become
more mature.

The
operational
timelinesofagriculture are strongly dictated by
the seasons. We are at the perfecttime to fund and start the project as
the planting season is in Jun-Aug.
This gives us 1 year to fund the
project and get the seed andnursery going to plant in Jun 2022.
During this time we will do a lot of
the
basic
road
work
and
underground infrastructure. The
coffee plants take 4 years to start
to produce the first crop. During
this time we will develop more
infrastructure. The resort company
will build the resort structures andwe will design and build theprocessing mill so that everythingis fully operational by 2026. We will
also develop market connection inthis time and probably buy and sellsome coffee from other farms
through our marketing channels.

19 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Start-Up Summary and Goals
Boquete Coffee Estate is seeking$5.5. million to fund the startup
costs. This includes funds for theland,infrastructureandallmanagement costs through year 4,
at which point the company isprojected to be net profitable. The
farm is 53ha and over 30ha will beplanted with the Geisha Coffee. The
remaining parts of the farm will
mostly be nature preserves, andsome of the land is going to beavailable for the resort. The goalsof the business are to provide agood return on investment focusedon high end specialty coffee, and tocreate an environment where boththe investors, land and clients aretreated with care and respect.

Community: Competent team who
are committed and loyal to thevision and goals of the project. For
us it is of vital importance tosupport the community and thepeople that are part of the team toachieve success

The specific goals of the businessare:
Value and Profit - Rising land value
plus coffee income that is projected
to be over 10%.
The land andasset values are projected toincrease significantly over time as
the infrastructure is built and thecoffee planted and goes into
production providing the investors
withcapitalappreciation
andincome.
Good Coffee: High-quality fullflavoredcoffeegrown
inenvironmentally friendly way byworking
togetherwithnature,working the land without destroyingit.

20 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Projected Revenue$1.7M
57,881lbs
30.39/lb$2.1M
63,813lbs$1.9M$33.50/lb
60,775lbs$31.91/lb$2.2M
63,813lbs$35.18/lb$1.6M
55,125lbs$28.94/lb$1.4M
52,500lbs$27.56/lb$1.3M
50,000lbs$26.25/lb$925k
37,000lbs$25/lb$250k
10,000lbs$25/lb21 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

PRODUCTS AND SERVICES
CoffeeOur main product is Panama Geisha
Coffee. Panama Geisha is a uniquevariety of Geisha coffee that isdifferent both genetically and inflavordue
tothegrowing
conditions. Panama Geisha is theT2722 variety of Geisha, which isvery rare and less domesticatedthan some of the other varieties.
The other factor that creates theaward-winningflavoristhe
combination of the variety and theunique growing conditions found in
the Boquete area of Panama.
Panama Geisha is a unique variety
with unique requirements that onlya coffee farms can fulfill.

22 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Production and Marketing
We intend to have our own
processing,packagingandbranding
tobeaverticallyintegrated company. By processing
our own coffee, we control theprocess to bring out the best quality
and achieve the highest price. We
will also have the opportunity toprocess coffee from other farms foran added income stream.

23 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

The Resort
We intend to create a resort
destination
inthebeautifulhighlands of Chiriqui.
A natural
landscape,coffeefarm,andrelaxing environment will enticecoffee enthusiasts looking for a way

24 | P a g e
www.BoqueteCoffeeEstate.com

to combine their passion for coffeewith their holiday travels. Investors
will have limited free use of theresortcabinsevery
year,
depending
on
the
level
of
investment of each investor.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

CHIRIQUI & BOQUETE

Chiriqui province is one of theprincipal
provincesintheproduction of many fruits andvegetables. It has some absolutely
stunning
landscapes,
includingbeaches,mountains,
andfarmlands.

places to retire by the AARP in2010.

100% of Panama Geisha Coffee
comes from small areas in thisprovince, such as Boquete and theareas
surrounding
Mt
Baru.
Volcán Barú is the highest point inPanama, 3,475 meters, with views
from the top that stretch to both the
Pacific
andCaribbean
coast.
Boquete is known for its cool, freshclimateandpristinenaturalsurroundings. It is renowned for its
coffee, oranges, strawberries andannualflowerfestival.
The
strawberries really must be tasted!
Boquete was rated among the best

25 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

MARKET ANALYSIS
Industry
TrendsAnalysisandMarket

The coffee market can be roughly
dividedinto
twocategories,
commodity coffee, and specialty
coffee.

increase in the consumption of
specialty coffee as segment of totalcoffee, with an increase from 14%
in 2001, to 41% in 2017.
We
believe this trend will continue anddemand for specialty coffee will
increase.

While commodity coffee has always
been the largest segment by
volume, recent trends have showna shift in demand towards specialty
coffee, as both quantities andprices have increased.

Market Size

Market research by the Specialty
Coffee Association records anconsumers of high-end Panama
specialty coffee. Asia has seen

26 | P a g e
www.BoqueteCoffeeEstate.com

We estimate that the specialty
coffee market in the US alone isworth $1 Billion. China, Japan and
Korea
are
also
significant

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

record breaking prices paid for lotsof high-quality Geisha Coffee.
Growing demand means there islots of opportunity for new microcoffee producers.
Availability of
land
is
a
limiting
factortoincreasing the supply of highquality coffee, and we expect prices
toincreasetothissupplyconstraint.

27 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Competitors
The production of high-quality
Geishascoffeerequireshighaltitude, specific weather patterns,
soil
composition,
andskilledagriculture
expertswhoknow
coffee. This rare combination offactors places a constraint ofcompetitors, leaving us withoutcompetition in the marketplace forour coffee. The imbalance in tha
marketplace places most of thepressure on coffee buyers, whohave to drive up the prices for ourcoffee in order to acquire it.

Price per pound for Panama Geisha
Coffee, as of Oct 16, 2019

We believe that the limitation ofavailable land to expand productionof high-quality Geisha coffee will
prevent many new competitors fromemerging.
The land we intend to develop is
unique, and is located in the
Chiriqui,
not
far
away
from
Boquete, Panama. With elevations
between 1,700 meters to a bit over
2,000 meters, it is at the perfectelevation to grow quality full
flavored Geisha coffee, as well as
having the perfect soil and weather
conditions. This combination is ahighly sought after locating forGeisha coffee farms.
Moreover,Panama is a Pioneer when it comesto truly high-end Geisha Coffeecompared to other countries like
Costa Rica, Colombia that produce
Geisha Coffee, but do not have theconditions to bring out the same
flavors and quality. The best talent
in the coffee industry is also foundin Panama.

28 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Positioning
BoqueteCoffeeEstatehas
identified three distinct customer
segments that it will actively
pursue. High end cafes this will be
the main target market. We will
cultivate relationships with thesecafes in order to maintain steady,direct-buyers for our coffee.
Retail home coffee aficionados
search for high-quality coffee.
While this segment consumes a lot
less on an annual basis, they areoften the ones willing to pay thehighest prices. We intend to sell tothisclienteleusing
digitalmarketing. You can see this on EBay and other mass marketingoutlets where Geisha coffee prices
consistently exceed our $25 per lb
target price.

3. The Boquete region of Panama
is world renowned for producing
the world’s best coffees, andnew entrants in the exclusive
zone will be noticed by ourtarget customers.
4. Asia is one of the top markets forhigh-end Panama Geisha coffee,
and our business team is wellconnected to Korea, Japan and
China, including ownership of acoffee shop in one of China’s top
malls.
These 4 strategic points will give
Boquete Coffee an advantage as webring this business to market. We
are well positioned for success, andbelieve we have a winning formula
to achieve our targets.

We will also be targeting thespecialty coffee retail markets.
Cafes and marketplaces sell highquality coffee direct to consumers
in search of coffee on the higher
end of the specialty spectrum
Boquete Coffee Estate has several
strategic points that enable us to bewell positioned in the high-end
coffee market.
1. We intend to build a resort
catering
tocoffeelovers,allowing them to engage in their
passion for rare and exotic
coffees.
2. We have attracted the top coffee
talent from our region of theworld, who will bring theirreputation for cultivating theworld’s best coffees to ourbrand.

29 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Historical Coffee Prices$1,200.00$1,000.00$800.00$600.00$400.00$200.00$100.70

$0.98

$0.00

2009

2010

2011

2012

Panama Geisha Price Range*

2013

2014

2015

2016

Panama Specialty Coffee*

2017

2018

2019

Commodity Coffee*Prices from Annual online auction “Best of Panama”

30 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

MARKETING AND SALES

Relationship Marketing
We will be involved in the majorcoffeeassociations
tobuild
relationships
with
high
end
consumers in multiple countries.
We are currently working with anexperienced team who deal with thehighest level of specialty coffee
consumers, giving us an advantage
over others entering the specialty
coffee industry.

Direct Sales
We intend to build relationships
with top cafes that want to offer aunique quality. Our team has anexisting network of connections in
the US, China, Japan and South
Korea. We will also be looking at
expanding our coffee connection to
the EU.
As an environmentallyfriendly, sustainable, quality microfarm, we will have strong appeal in
the fastest growing sector of thecoffee industry. This sector also
happens to be one of the sectorsthat embraces direct buying ofcoffee from the farmers.

31 | P a g e
www.BoqueteCoffeeEstate.com

Digital Media
Our team has several full-time web
developers and digital marketing
experts. We will start using digital
media during the startup phasegiving us 4 years to develop the
anticipation and the followers to be
waiting for our first production tocome on line. With existing clean
email lists of over 100,000 we will
be able build a timely buzz about
our company and coffee. Our teamis very experienced in all forms ofdigital marketing.

Sales Forecasts
The current undersupply of Panama
Geisha Coffee on the world markets
leads us to believe that all coffee
we are able to produce will be soldquickly (in advance in many cases)
with little impact on world prices.

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

FINANCIAL PLAN
Capital Requirements$5,500,000 is required in startup
funding, which will cover all landcosts,
infrastructure,coffeeprocessing facility, overhead andmanagement costs, all first year
planting and management and costsof the farm through the end of year
4. Due to the land, infrastructureand first year planting costs, 70%
the investment will be used in thefirst 2 years.

expect to have 25 rental units,
earning an average of $100 pernight, with an occupancy rate of
50%. Most of the funds will go into
the maintenance and managementof the resort to support having
excellent quality and service for theinvestors when they stay in theresort. The resort management will
also have employee and financial
synergies with both the farmmanagement and coffee production,
which will decrease the farmmanagement overhead.

Revenue Summary
The projected gross sales revenue
from coffee production will start in
the fourth year, estimated to be$425,000, increasing to $1,200,000
by the sixth year. We anticipate thatcoffee sales revenue will increase afurther 10% to 20% after the ninth
year, due to some growth inproduction
volume,andanincreasing sales price as wedevelopareputationfor
ourspecific brand of coffee.
Webelieveourexperienced
management team will enable us tominimize
expenses
andavoid
complications.
We
expectnet
profits to reach $840,000 by thesixth year from coffee production.
This should provide investors witha return of about 15% per year.
We estimate that gross revenue
from the resort will reach $456,000
annually by the sixth year.
We
32 | P a g e
www.BoqueteCoffeeEstate.com

Revenue Assumptions
We have done extensive research
to validate our assumptions, and wehave based the plan on verifiablefacts. Coffee is the second largest
commodity so facts on coffee
productions are readily available
and verifiable.
Revenue assumptions for the coffee
production is based on 30 ha of the
total
area
being
productively
planted with Geisha Coffee and a
projected yield of 1,700 lbs of dried
Green coffee per ha when we reachfull production, with an averageretail sale price of $25 per lb.
These
are
very
conservative
assumptions as Panama Geisha
Coffee is the highest valued Geisha
coffee and the average price forGeisha coffee has exceeded $25
per pound. While other areas areproducing Geisha coffee, there isvery limited available land to
Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

produce the highly valued Panama
Geisha Coffee.
We have estimated conservatively
that we will be able to plant andproduce coffee using only 30 ha of
the 52 ha plot we intend to develop.
We anticipate to realistically plant
on up to 40 ha of land, but havelowered our estimates in case someareas have varying levels of
productivity
Resort revenue is based on renting
25 units, for an average price ofProjected Profit & Loss
This is based on just the coffee
farm value and income, there issome added value of the resort andincome although most of the resort
value will not start until year 4 andwill have the most growth in year 4
through 8 so we are looking at thisinvestment from the value of thecoffee farm and based on just thecoffee farm it has exceptional
potential.

$2,500,000$2,000,000$1,500,000$1,000,000$500,000$0-$500,000
Revenue

Operating Costs

Production Company Net Income

Cash Balance

Total Investor Distributions$100 per night, with a 50%
occupancy rate. Of the 25 units, 15
will be luxury studio hotel type units
in the main common area coffee
house, and 10 will be private cabins
within the coffee plantation andforest reserve land.

33 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

Asset Value Backed Investment

more productive. A productive
coffee tree at the age of 4 years old
has an asset value of $50 per trees
and we anticipate having 1500
trees
per
hectareadding$2,250,000 to the raw farm asset
value over the first 4 years. This
investment will have a strong asset
value of $6.8 million, as well as
cash flow value.
These types ofassets have real value independentof
inflationandcurrency
fluctuations and are independent of
the income from the project.

This is an asset-based investment
opportunity with a solid balance
sheet in owned real estate andinfrastructure assets. Over 50% of
the initial investment is the raw
land value without infrastructure.
As the roads and infrastructure aredeveloped, we expect the value ofthe developed land to increase.
Well located raw land with roads
and infrastructure in the Boquetearea sells for $7 to $10 per m2,
therefor the raw land asset of thecompany is expected to grow to$4.5 million after the road, electricand water infrastructure projects ofthe first two years are completed.
Coffee plantations grow in value
each year as the trees get older and$8,000,000$7,000,000$6,000,000$5,000,000$4,000,000$3,000,000$2,000,000$1,000,000$0Cash BalanceLand Value

Value of Coffee Trees

34 | P a g e
www.BoqueteCoffeeEstate.com

Total Asset Value

Total Investor Distributions

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

35 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

FUNDING & INVESTMENTOPPORTUNITY$5,500,000 Total raise of funds to purchase land, plant and manage for 5
years. After that it is positive cash flow from the harvest and sales.

Master company VIP investor
package$100,000 investment package

management company to be used
for additional net income. There are
0 fees for the ownership of this.

a) 450 lbs. of dried green geisha
coffee per year, which is the
production from approximately 1
acre. ROI Value Return on 450 lbs.
of Geisha Coffee at $25 per lb.
$11,250 net ROI of 11.2%. This isjust the return on the guaranteed
allotment from the production.
b) 200 shares of the Boquete
Coffee Estates which is the masterholding company of the landholding company, 75% of the farmand coffee production company and
48% resort company and receives apercentage of the net profits of all
profit streams in addition to the net
450 lbs. of coffee or cash. The
guaranteed cash coffee yield isabout 50% of the gross production.
The other 50% goes to the coffeecompany to sell and the funds areused to cover 100% of the costs
plus is projected to have a profit
projected which will be distributed
in addition to the income from thesale of the 450 lbs. of coffee which
the investor gets the complete
gross amount the allotted amount ofcoffee sells for.
c) 2 weeks free stay in the coffee
house, which can be rented by the
36 | P a g e
www.BoqueteCoffeeEstate.com

Boquete Coffee Estate
Funding@BoqueteCoffeeEstate.com

$25,000 investment package$6,000 micro investment Packagea) 100 lbs. of coffee 100 lbs. @ $25
per lb. = $2,500 or an 10% annual
net cash returna) 20 lbs. of coffee, 20lb of Geisha
coffee at $25 per lb. is annual valueof $500 or 8.3% value return.

b) 50 shares ownershipmaster companyb) 10 shares ownershipmaster companyinc) 3 free night’s stay per year

37 | P a g e
www.BoqueteCoffeeEstate.com

the

in

the

c) 1 free night’s stay at the resort
per year. (can accumulate up to 5
nightsBoquete Coffee Estate
Funding@BoqueteCoffeeEstate.com