Receiver coffee victoria row

RECEIVER COFFEE: BREWING UP WHOLESALE CUSTOMERS Eric Dolansky wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have altered certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Our goal is to publish materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs Copyright © 2020, Ivey Business School Foundation Version: 2020-02-24

It was September 2018, and the summer tourist season for Receiver Coffee (Receiver) was winding down. Colleen MacKay, co-owner of the Charlottetown, Prince Edward Island (PEI)-based coffee roaster, was eager to determine how best to grow her business. It was not that the company lacked success because, with two café locations in Charlottetown and year-over-year growth of over 100 per cent, Receiver was thriving. Instead, the concern was that MacKay and her partners had reached the ceiling of what could be done in their market, and they were looking to increase their wholesale revenues. MacKay had been involved with the company since early 2015, and during that time, it had increased in its demand and roasting capacity, added a location, and widened its product offering. The owners believed they had found a true point of differentiation: Receiver was about the coffee, how it was sourced, how it was roasted, and how it was sold. “We are always moving toward the most ethical way to source our inputs,” said MacKay, “and we are fairly unique in PEI as to what we’re doing.” The company’s three goals, according to its website, were “. . . to provide coffee that is sweet, exciting and ethically sourced; to create unique, delicious food and baked goods; and [to] cultivate community.” Receiver had opened its second location in June 2017, but, according to MacKay, “. . . by month eight of being in that space we knew we had grown out of it.” A third phase of growth was planned for summer 2019, with production space to house the roaster and a bakery with a small café storefront. At the same time, MacKay was trying to expand its wholesale coffee sales to cafés in the Maritimes,1 Ontario, and Quebec. Business was set to slow in the coming weeks as the high season ended, allowing for more time to plan and build a customer base outside of PEI. It was important that this time be used wisely, as much could be accomplished during the low season. MacKay admitted the problem: “I don’t know where to start!” RECEIVER COFFEE Receiver began its life in Charlottetown, PEI, in June 2012 as a small coffee roaster and café with baked goods offerings. It was originally named Row 142, which Mackay described as follows: “Row 142 was a very small space with only a small bench to sit on and not much more.” She continued, saying, “Row 142 was where coffee enthusiasts flocked, as it offered specialty coffee not previously available on PEI.” 1 The Maritimes were a set of four provinces on Canada’s east coast: Prince Edward Island, Nova Scotia, New Brunswick, and Newfoundland & Labrador.