Member Article

Canny Coffee entrepreneur fights off competition and plots growth

A husband and wife team who have carved a niche with their coffee machine supply business say they aim to grow by 2015, thanks to out-of-region sales.

Colin and Jen Smith, who founded Blaydon-based Canny Coffee in 2011, say competition has been tough, but strategy to target a national market with their purchase and lease agreements has allowed them to fend off bigger operators.

Former vending machine and Cadbury salesman Colin spotted a decline in the vending market and a growing demand for quality food and drink products, on the high street and in the work place.

Following a sudden redundancy in 2011 Colin decided to go it alone with his model of leasing coffee machines for major manufacturers such as Jura, Coffee Queen and Fracino, via third-party leasing companies.

Three years in and Colin says the business has had its ups and downs, but is now in position to grow thanks to lucrative deals with the likes of British Engines and Faulkner Brown Architects, among others.

He told Bdaily: “Our target market is the office sector, but also retailers, sandwich bars and restaurants.

“Our first sale was in April 2012 and we’re now averaging between £20k-£30k in coffee machine sales each month. We also sell all the ancillary products that go with the machines.

“The market has really taken off in the last few years. The likes of Starbucks and Costa on the high street have really educated people about what coffee should be like - and now in the workplace, people won’t settle for a plastic cup of coffee powder and hot water.”

On a regional basis, Colin and Jen are up against established brands such as Ringtons and Pumphreys. They have been working with training provider Intraining to develop their business across sales, marketing and strategy.

Colin added: “Our challenge is to market ourselves amongst these operators. We hold our own very well - particularly as the majority of our business is outside of the area.

“We supply up and down the country, with installation - and that’s our niche. We’re working with manufacturers who provide technical back-up, servicing and warranties.”

With the help of Intraining personal business adviser Richard Pitt, and business trainer Angie Learwood, Canny Coffee is now plotting an expansion strategy which includes refreshed branding and social media marketing.

Colin added: “We’re just on the cusp of coming out of recession in the North East - and that’s fundamental to a business like ours. People need confidence to begin spending on luxury items like coffee machines.

“I know from my time in sales for other companies, the region is big vibrant market when it’s firing on all cylinders - it just takes a little while to catch up with the South East.

“The North East has got a great eating and drinking choice - it’s really full of great places coffee shops, restaurants and cafés. We’ve helped 40 new-start retailers with their coffee machines in the last year.”

This was posted in Bdaily's Members' News section by Tom Keighley .