USA: eGreenCoffee.com Begins Streamlining Green Coffee Trade
Designed by coffee professionals, the site will eliminate market inefficiencies and streamline the trading process throughout the global supply chain of the $50 billion green coffee market.
After successfully establishing the green coffee exchange, eGreenCoffee will replicate the model and work with strategic partners to develop an online trading site for cocoa that will go live by mid-2001. The company will also create similar sites for the $150 billion soft commodity market that includes tea, sugar, rice, corn, wheat, citrus and cotton.
"Our philosophy from the beginning was creating a trading platform for the commodities world, starting with coffee," said Hanif Moledina, CEO, president and founder of eGreenCoffee and a 16-year veteran of the coffee and tea industry. Moledina estimates that about 25 percent of green coffee will be traded on the site within two to three years.
eGreenCoffee's Web site is a single source for producers, exporters, importers, roasters, financiers, futures brokers and logistics management companies involved in the green coffee trade. Green coffee -- raw, pre-roasted coffee named after the color of the beans -- is the world's second largest commodity after oil. Much more than a billboard site, eGreenCoffee.com's industry-friendly model leverages a blend of coffee expertise and high technology to replicate the existing trading process. What distinguishes eGreenCoffee.com from competitors is the anonymity it provides coffee professionals, who prefer to conduct business without divulging detailed information to competitors.
In the highly fragmented green coffee market, rife with poor communications and information exchange, beans typically change hands multiple times in the sales process. Until now, buyers and sellers did not have a common platform to do business efficiently. Using eGreenCoffee.com, the buyer can clearly see the price and quality of products that match his criteria and also facilitate just-in-time and vendor-managed inventory strategies. The seller, regardless of size, has a direct line to the global market, benefiting from increased exposure and revenue. This streamlined process can result in potential price savings for consumers amounting to 12.5 percent worldwide.
"Online marketplaces will reshape the commodities markets by replicating current trading processes, but with a much wider geographic base of users," said Rob Rosenthal, a research analyst with IDC in Framingham, Mass. "Solutions like eGreenCoffee will make it possible for companies across the globe to participate more effectively in these markets."
Major roasters, exporters and other key market participants throughout North America, Latin America, Europe, and Africa have tested eGreenCoffee.com.
Lavazza, the number one coffee brand in Italy and a worldwide leader in espresso, is a member and the first industry equity partner. "This is a very exciting and pivotal time for the coffee industry," said Mario Cerutti, director of the Coffee Buying Department at Lavazza. "Today I posted a bid on the Internet for the first time, and I believe that using the Internet and eGreenCoffee.com for our trading activities will undoubtedly make the process more efficient. Within two years, the eGreenCoffee site could account for some 20 to 25 percent of Lavazza's green coffee purchases."
Unlike billboard sites limited to a list of bids and offers, the eGreencoffee platform allows secure and anonymous trading and online negotiations. Buyers can instantly receive multiple offers from pre-approved partners instead of making numerous calls to gather information. As a result, they spend more time on strategic activities and relationship building. eGreenCoffee's site will also provide ancillary services, such as real-time futures market quotes, detailed information on physical prices, transaction tracking, weather reports, market news and alerts, coffee encyclopedia, inspection, insurance (crop, marine, trade and inventory), trade financing, shipping and warehousing services, and links to coffee service providers.
"We've provided all of the aggregate services so traders can do everything from A to Z. In other words, we've made it the single source for their needs," said Moledina, whose family has a 45-year history in the coffee business. "Our marketplace will also help maintain and enhance the personal relationships we recognize as being critical in the green coffee industry."
eGreenCoffee is the first company to offer buyers and sellers a secure, anonymous and reliable way to trade green coffee globally via the Internet. The B2B online exchange is bringing the $50 billion industry into the Internet economy with an easily accessible, common platform that replicates the current trading process while greatly improving its efficiency. eGreenCoffee.com is also a single source for industry information, including futures quotes, weather updates, market alerts and news. After successfully establishing the green coffee exchange, eGreenCoffee will replicate the model and work with strategic partners to develop similar sites for the $150 billion soft commodity market that includes cocoa, tea, sugar, rice, corn, wheat, citrus and cotton.
eGreenCoffee has completed its angel and second rounds of financing and is in the process of securing the third round. The company's technology partner is Information Management Consultants (IMC) of McLean, Va., an award-winning provider of e-commerce solutions. ScreamingMedia of New York supplies industry news and AccuWeather provides forecasts for coffee-growing regions. Digex of Beltsville, Md., the largest Internet service provider on the East Coast, handles the site's monitoring, management and technical support.
eGreenCoffee.com is a trademark of eGreenCoffee.com, Inc.
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