Stumptown's private equity deal - Page 5

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#41: Post by another_jim »

The best coffee growers have become a lot more savvy about finding buyers. I've seen a rise of auctions and direct sales, mediated by the internet, and with shipping handled by regular importers, where alliances of very small roasters deal in 1 to 10 bag lots with single growers.

Suppose the worst happens, however unlikely that is, and the current crop of third wave roasters becomes consolidated into one or two larger chains positioning themselves above Starbucks in quality (this appears to be the pessimistic scenario being developed on this thread). Isn't this new way of selling and buying the top green coffees immune to such a consolidation?
Jim Schulman

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#42: Post by malachi »

Ryne wrote:If Carmichael's comments are fabricated why hasn't Stumptown set the record straight about the deal not being a 90 / 10 split? Could there potentially be a clause in the contract that prevents disclosure to the public of any of the deal's details?
In fact, Confidentiality Clauses are standard fare.
The odds of their NOT being such a clause in place are VERY low.

That being said - that doesn't mean that his comments are fabricated.
And - in fact - nowhere in my comment did I say they were.

The Conflict of Interest issue lies in his commercial interest in their being a negative reaction to the news.
Ryne wrote:Could Panos plausibly be listed as president, secretary, treasurer and director of Stumptown if STG had a minority stake in Stumptown?
Short answer - yes.
Long answer - Absolutely, especially given that "Stumptown" in this case could be the previously existing coffee business, a previously existing corporate entity that owned the coffee business (either partially or outright) or some new entity created in order to facilitate this or another transaction.
Ryne wrote:Although there's a clear conflict of interest for Carmichael there's no actual evidence he acted duplicitously.
To be blunt - when you do not disclose that the company you are writing about is a direct competitor IN your market (and from what I hear, a competitor that has been taking significant business from you), then you do in fact act duplicitously.
Ryne wrote:In contrast we now know that mgmt at Stumptown was not honest about what had happened (although I'm sure that some will argue that they had no obligation to be).
As you note above - it's probably not an obligation issue. It's highly likely that they are not able to disclose.
Ryne wrote:A 90 / 10 deal is hugely damaging to their reputation and could induce panic amongst employees and potentially hurt sales (moreso in pdx than Seattle or NY).
Because people in PDX are more business-ignorant than those in Seattle or NYC?
Sorry... I don't see it.
I keep hearing this - but it seems to be coming (90% of the time) from people either outside of PDX, people working for competitors of Stumptown, or smelly hippies.
"Taste is the only morality." -- John Ruskin

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#43: Post by drgary »

malachi wrote:I keep hearing this ... from ... smelly hippies.
??? :oops: :lol:

What I WOULD do for a good cup of coffee!

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#44: Post by iginfect »

Smelly hippies have no money and cannot support any coffee shop. In any case there haven't been hippies in any numbers in decades. We used to live off the fat and waste of the land, which is currently no longer possible. The $30 tenement slums in the east village now rent for $2000 and are occupied by yuppies. And some of of us have grown into coffeegeeks and such ilk.



#45: Post by cpreston »

FWIW I was at the Whitney museum in Manhattan the other day and saw that their new cafe/restaurant offered Stumptown coffee. There was an area at one end of the bar with a big Stumptown sign. I asked if the baristas were Stumptown employees and they said no, but that they had been trained by Stumptown.

I didn't have a chance to try the coffee.