Coffee and Coke blend a story of success
A strong blend of ambition and persistance has allowed Jim Coke to see off rivals and naysayers as he launches a regional coffee brand
Arriving in a strange city three years ago with no contacts and only a soon-to-be-short-lived employment contract in hand, Jim Coke has brewed up a regional coffee brand about to launch in Hong Kong's largest supermarket chain.
With a potent blend of ambition and sheer stubbornness, he has seen off competitors, naysayers and the city's unsavoury racial undertones.
"It's just persistence. I have been set back so many times," Coke told the .
His story echoes those of many who come to Hong Kong to seek their fortune even as the outlook for small companies darkens in the face of rising costs.
Last year, after a documentary was screened on Jamaica Blue Mountain coffee, Coke contacted his father and extended family on the Caribbean island. He learned he could deal directly with distributors in Jamaica and sell the coffee in Hong Kong at a fraction of the retail price.
Jamaica Blue Mountain, a premium coffee bean, costs up to HK$400 per four ounce bag. Using Groupon and other discount group-buy websites, Coke sells it for HK$160 to HK$170 and still makes a tidy margin.
"Groupon financed my business," says Coke, explaining how he used its bulk purchase model to manage cash flow and inventory. Once an online promotion is closed, he receives 50 per cent of the proceeds, less the website's cut. He uses this money to pay for the coffee, which his supplier then couriers to Hong Kong in time for distribution to clients. The balance is paid upon delivery. This way he takes no risk.
Two years ago, Coke left a job in recruitment and started in coffee. By focusing on costs and through a steady succession of small deals, he was able to build up cash flow and credibility.
"A lot of people were unhappy at my selling price, because it was affecting their business," he said. "They went to my supplier … and he became very reluctant to sell me the higher-end product."
Coke then obtained a distribution licence from Jamaica's Coffee Industry Board. Farmers are required to hand over beans to the board for grading and export via licensed distributors.
Coke also fought back. In newspaper interviews and formal complaints to Hong Kong customs, he criticised several distributors for misleadingly selling their coffee as Blue Mountain blends without possessing the necessary licences and quality assurances from the CIB.
It was a pugilistic move from someone who holds three Cambridge Blues in boxing.
"Boxing taught me to fight, not physically but metaphorically," he says.
Of mixed Jamaican-Nigerian parentage, he says the necessity to stand up for himself in the face of hostile behaviour and underhand business practices has been one of the most troubling aspects of working in Hong Kong.
In several instances, his staff had negotiated distribution deals with local retailers and terms had been agreed, but once Coke appeared in person to sign off, excuses would start being made.
"They tell me, 'We are busy.' 'I can't do this. I can't do that'. 'We are moving offices'," recalls Coke. "Usually once I step in after the first pitch, the deals go sour."
He hung up 18 certificates on his wall, including his master's degree certificate from Wolfson College, Cambridge, to try to dispel any doubts about his integrity and background. When several hooks broke, Coke took them all down, saying: "If they can't trust me, don't work here."
After launching his own coffee brand, "Lily Kerridge" in January, Coke now markets three high-end coffees across Southeast Asia. Last month, he secured a distribution deal with ParknShop. Coke hopes people will look again at what he has to offer.
