Posted by Thomas Blanche on Tue, Feb 24, 2009 @ 01:17 PM
High Point Coffee hopes to see business perk up with office service
By Blake Fontenay (Contact), Memphis Commercial Appeal
Tuesday, February 24, 2009
For a company that once seemed bent on world domination, Starbucks Coffee Co. has taken a good scalding lately.
Last month, the company announced plans to cut 6,700 jobs, close 300 stores, sell one of its corporate jets and scale back store openings as part of a cost-cutting effort.
Matthew Craig/The Commercial Appeal
High Point Coffee employees Stepjen Noble (right) and Jason Elder keep customers filled at the Union Avenue shop. High Point is pleased with the nine shops it operates, but is shifting its focus to office service, which is a big market for coffee consumption.
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The store closures follow a year in which Starbucks closed more than 600 stores, including 10 in the Mid-South.
To add insult to injury, in McDonald's current advertising campaign, the fast-food restaurant chain seems to be poking fun at Starbucks' somewhat pretentious image. Meanwhile, Starbucks has been experimenting with unconventional new business ventures that have some investors scratching their heads.
All of which might seem like good news for High Point Coffee, the Oxford, Miss.-based coffeehouse chain that operates four locations in the Memphis area.
In fact, High Point is making plans to dramatically increase its business.
Just not in the direction one might expect.
High Point president Thomas Blanche said the company has no plans to open more coffeehouses in the Memphis area -- or anywhere else, for that matter.
That decision is partly based on the frigid business climate.
"For us, the economy has driven sales down," Blanche said. "We're going through tough times, like everybody else."
But High Point is also going through a fundamental shift in its business plan.
Instead of waiting for customers to visit one of High Point's shops, the company is focusing on selling coffee to the places where they work.
"We started the office coffee business in November and the response has been phenomenal," said Blanche, who said High Point has already picked up "several hundred" office accounts in that time span.
According to information compiled by the National Automatic Merchandising Association, there's a hot market for office coffee service.
Between 2002 and 2007, NAMA reported that the office coffee business posted a 53 percent revenue gain -- with another 36 percent gain projected over the next five years.
Blanche said people drink more coffee at their offices than any other place except their homes.
Blanche said High Point doesn't plan to close any of the nine shops it operates now. Besides generating revenue, Blanche said those shops give High Point exposure that can help win other types of business.
In addition to the office coffee business, Blanche said High Point is selling coffee to other coffeehouses.
And Blanche said the company may branch into grocery store sales at some point in the future.
As for Starbucks, despite its recent troubles, Blanche isn't expecting his giant competitor to shrivel up and die.
Matthew Difrisco, executive director for Oppenheimer & Co., a financial firm that monitors Starbucks stock, agreed.
"They made the mistake of over-expanding, which they've corrected to a certain degree with the recent store closings," Difrisco said.
Although Starbucks is trying some new strategies, including selling instant coffee and value meals in its stores, Difrisco said that is not a sign of desperation.
Rather, Difrisco said, Starbucks is looking for incremental ways to increase its sales revenues.
"It happens with every business," Difrisco said. "They're searching for a new platform."
-- Blake Fontenay: 529-2386.
High Point Coffee
Founded: 2002
Headquarters: Oxford, Miss.
Store locations: Nine total, including four in the Memphis area and two in Oxford
Employees: 45
Web site: brewhighpoint.com
Posted by Thomas Blanche on Tue, Feb 24, 2009 @ 01:08 PM
NEWS RELEASE
FOR IMMEDIATE RELEASE:
For more information, contact:
Thomas Blanche
President
High Point Coffee
Phone: 662.791.9791
E-mail: thomas@brewhighpoint.com
High Point Coffee Enters Office Coffee Market
December 2, 2008
OXFORD, MS-specialty coffee roaster High Point Coffee Distribution, LLC announced today it has acquired Coffee & More, a premiere Mississippi office coffee service company. The company formerly owned by VendaSnack Services, will now be named High Point Office Coffee Services (HPOCS, Inc.). The aquisition establishes a route for High Point to venture into a new line of coffee sales by providing office coffee service in North Mississippi as well as the greater Memphis and Jackson, MS markets.
"HPOCS, Inc. allows us to penetrate new markets, markets which are the second leading venue for coffee consumption in the US. Our relationships with office coffee customers will be direct, and branding can be achieved at a much lower cost," said Thomas Blanche, CEO of High Point Coffee.
Rich Thomas, vice president and general manager of HPOCS, Inc., will oversee the company's office coffee services division. "We are very excited about offering a Mississippi roasted coffee coupled with home-style service," he said.
Thomas's expertise in office coffee service, will enable High Point to provide a complete and consistent coffee program for any size office. Additionally, through its "first to market" distributor program, the company will expand office coffee services through independent distributors. HPOCS, Inc. will operate its new office coffee service division from its headquarters and 8,000 square foot roasting plant in Oxford. Additionally, fractionally packed coffee will be processed and distributed from its Oxford roasting facility to service its office coffee customers. The terms of the deal includes a substantial customer base of North Mississippi businesses and creates opportunities for High Point to partner with new distribution networks. The company will offer reputable equipment, installation and maintenance as well as a wide variety of specialty coffees, cappuccino, teas, water, and allied products.
About High Point Coffee:
High Point Coffee Distribution, LLC is an Oxford, MS based branded and private label coffee roaster and packager of specialty coffees from around the world. Consumers can find High Point Coffees - including varietals, organic, fair trade and estate coffees - on-line, at retailers, offices, and grocers throughout the mid-south and in select metropolitan areas. Blanche is the owner of High Point Coffee Distribution and has partnered with Rich Thomas, and Joel Edlin of VendaSnack, Inc. to launch HPOCS, Inc.
For more information, visit http://www.highpointofficecoffee.com/ , http://www.brewhighpoint.com/ , http://www.highpointcoffee.biz/ , and email thomas@brewhighpoint.com . ###