There are millions of coffee places that serve bad coffee due the lack of quality in the coffee beans the buy.
Sorting good coffee beans from bad is a difficult and often manual job that small and medium coffee shops cannot perform.
Kaldi removes defective coffee beans according to SCA (Specialty Coffee Association) and delivers a flawless coffee cup.
We have invested one year part-time and we just finalized the MVP.
During May 2019 we traveled to China for finding manufacturers to our product and contact early adopters. We got the interest of two local coffee chains and we remain in contact with them.
Now we would like to launch the product to the market and we are seeking Angel investors or Venture capitalists to launch in Asian market.
China is switching from tea to coffee.
There are over 140 000 coffee shops in 2018. Europe has around 300 000 coffee shops.
We do not focus on China because of the size, we focus on China because is an emerging market and it is open to foreign companies. Europe is much bigger but more conservative compare to China.
There are around 450 million in ages 15 -25 years old.
Most of the coffee shops serve defective coffee beans, giving to the customer a bad experience.
On average a coffee cup contains 10% defective beans. Just one bean is enough to ruin the coffee cup.
The machines to sort coffee beans are very expensive and big. Only large coffee firms are able to afford them.
Solution (product or service)
Kaldi is unique product that delivers a flawless coffee cup.
The product is build with inexpensive hardware, and with small dimensions; making Kaldi suitable for small medium coffee shops and roasters.
Kaldi removes the defective coffee beans according to Specialty Coffee Association giving the availability for the coffee shop to sell coffee to a higher price.
There are two large companies which focus on big roaster or large chains:
- Buhler (Swiss)
- Satake (Japanese)
None of these companies address the needs for small medium coffee chains. The focus on large corporations related to coffee. Also their machines are very expensive and big, usually around $100 000
Advantages or differentiators
Kaldi builds on a proprietary data set and IA. The majority of the products are based on computer vision and don't update their models for emerging coffee countries like Peru, Vietnam or India.
Kaldi can learn faster than the other competitors as it has built in AI. If new types of defects occurs, Kaldi will be able to remove them while the competitors won't.
Our estimates are:
production cost per unit $632 this price might vary depending on the selected manufacturer.
Market price: $3000 to $5000 based on our trip to Shenzhen and Guang Zhou
Year 1: 10 000 units (China only)
Year 2: 14 000 units (China only)
Year 3: 20 000 units (China and Japan)
Year 4: 22 000 units (Expansion to Europe)
Year 5: 21 000 units (Expansion to USA, and Australia)
Our business model is to sell the product for a fix price at the beginning. We have done the business model canvas.
Customer segments (Niche market)
Small-medium coffee shops and coffee roasters.
Personal assistance / Dedicated personal assistance for early adopters and important customers.
We will test Alibaba and Ebay.
Barista fairs and competitions
Sales online through the website.
We will partner with relevant companies.
WeChat, Specialized blogs on coffee, influencers.
The value proposition is qualitative and it provides value added product or service for our customers (Coffee shops and roasters).
Transform the MVP into market ready product
Apply for pattern (product design, technical solution, etc)
Improve the proprietary dataset for the AI.
Continue and improve the relationship with early adopters.
The product hardware and software (AI and computer vision)
The dataset (of coffee bean images)
The brand (Made By Sweden)
List of early adopters
The CTO AI, computer vision and artificial knowledge.
Companies that can provide repairs and support to coffee shops and roasters.
Distribution companies (for the product)
Salaries of five employees working full time. Estimated $200 000 per year
Product manufacturing cost approximaly $632 per unit
Patent in China, around $20 000
Webshop $1 000 per year
Product sales. Each unit will cost between $3 000 up to $5 000
Training and certification One time fee of $500
Money will be spent on
The money will spent on making the MVP into a market ready product.
The physical product will get a appealing and unique design.
The AI will be improve and perfectionate.
We would recruit a few people to speed up the product launching to be available after Chinese Spring festival February 2020.
1 -2 Sales person (will also do marketing) located in China.
1 Mechanical engineer
1 AI Scientist (Python, C++)
Offer for investor
We're looking for seed funding.
We are willing to share 10% up to 30% of the company in exchange for $1 500 000 or $2 000 000.
We are looking for smart money, someone with connections in coffee chains, coffee distribution or manufacturing in China in first hand. Other countries like Japan and USA are also interesting.