Coffee brews huge profits

Coffee is the drink of the decade. People who used to hang out at bars, pubs, and music lounges are now seen at coffee houses. People who were once contented with the plain P10 cup of instant coffee have graduated to P100 mochas and lattes. Sales of specialty coffees have grown at an annual rate of 25 percent. Coffee bars are now sprouting up faster than mushrooms after the typhoon.

The demand for coffee machines led Leo de Leon, president of Allegro Beverage Corp. (ABC) into the coffee business.

"I have been in the espresso business since 1983 starting out with a chain of espresso bars called Allegro Italian Cafe in Houston, Texas," de Leon said. After several trips to Italy and attending a coffee training seminar in Milan, he bought out his Texas suppliers of the espresso machines and coffee beans. Sensing that Metro Manila would follow the growth of coffee shops in Europe and in the US, ABC was established in the Philippines year 1999.

De Leon said that there are three factors that matter most when customers purchase a product or equipment. One is quality, second is service and the third is cost. ABC distributes Nuova Simonelli espresso machines, grinders and granita from Italy, Bunn-o-matic brewing machines from the US, Danesi Caffe Espresso Beans from Rome, Cofrimell juice dispensers from Italy, Crem Expobar compact espresso machines from Spain, and server coffee accessories from the US. These manufacturers are the market leaders in volume and quality workmanship not only in Europe but also in Northern America.

According to Richelle Llacuna, sales manager of ABC, "there is no way one could get the best quality, the best service at the lowest price. What ABC offers though is the best value. We are not the most expensive and neither the cheapest. Our price is competitive and we offer our clients peace of mind."

ABC can also assist first time entrepreneurs not only with equipment selection but also in business development such as sourcing other suppliers for paper products and syrups, site selection, menu development, and cart designs. Training is also provided to clients.