Building Mado Coffee's Supply Chain Strategy
In the ideation phase of MADO Coffee, we developed a strategic roadmap to design an ethical, sustainable, and scalable supply chain — setting the foundation for a brand built on quality, transparency, and impact.
ConnectUs McGill Club | January - April 2025
Challenges
As MADO Coffee explores entering the competitive Quebec coffee market, several challenges emerged during the ideation phase:
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Incomplete sourcing and importing systems: Early plans revealed the need for a robust process to support ethical sourcing and quality standards.
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High market competition: Independent coffee shops are on the rise, making it critical for MADO Coffee to differentiate through brand story, quality, and values.
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Supply chain risks: Potential vulnerabilities include price volatility, shipment disruptions, and the challenge of ensuring ethical, traceable sourcing.
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Packaging and compliance planning: The brand must prepare to meet Canadian regulatory standards, including bilingual labeling and ethical certification requirements.
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Objective
To develop a strategic roadmap that would enable MADO Coffee to establish a fully ethical, sustainable, and scalable supply chain — supporting future operations while creating a strong, mission-driven brand identity.
Strategic Recommendations
01
Sourcing Model
Family-Owned Supply Chain Partnership
Why:
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Control over sourcing practices is critical for ensuring ethical labor, sustainable farming, and consistent product quality.
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Direct farm relationships allow storytelling differentiation ("farm-to-cup") — a major advantage in a crowded market where authenticity matters.
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Family-owned plantations typically offer higher flexibility for scaling supply agreements as volume grows.
Strategic Moves:
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Build exclusive supply agreements securing annual volume commitments (~36 tons/year) at predictable prices.
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Develop joint marketing narratives around the partnership to reinforce brand transparency and authenticity.
Risk Mitigated:
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Reduces exposure to volatile global commodity markets and quality inconsistency.
02
Import Optimization
High-Volume Shipment Strategy
Why:
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Every import cycle carries fixed administrative and compliance costs (tariffs, customs paperwork, logistics management).
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By consolidating imports into two larger shipments per year, MADO Coffee minimizes the per-unit cost structure and administrative burden.
Strategic Moves:
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Structure contracts to ship ~18 tons per shipment instead of smaller, more frequent imports.
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Build flexibility clauses into agreements to adjust shipping volumes in response to harvest conditions or sales variability.
Risk Mitigated:
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Reduces cumulative administrative overhead and spreads regulatory risk across fewer transactions.
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Protects against seasonal disruptions and transport price fluctuations.
03
Product Positioning
Own the Specialty Coffee Narrative
Why:
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Mass-market chains (e.g., Tim Hortons, Starbucks) compete on convenience and price; specialty shops win on authenticity, quality, and experience.
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Positioning MADO Coffee as a mission-driven, premium brand allows for higher price points and customer loyalty.
Strategic Moves:
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Highlight traceability, taste profile, and ethical sourcing front-and-center in all communications (packaging, website, storytelling assets).
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Introduce small-batch roasting and origin-specific offerings to appeal to discerning consumers.
Risk Mitigated:
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Avoids competing purely on price in a saturated low-margin market.
04
Packaging and Label Compliance
Two-Stage, Sustainability-Focused Packaging
Why:
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First impressions matter; packaging must balance freshness, regulatory compliance, sustainability, and brand story.
Strategic Moves:
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At origin (Cameroon): Bulk-pack green beans in biodegradable or recyclable materials, preserving quality during transit.
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In destination market (Canada): After roasting, use resealable consumer packaging made from high-barrier eco-materials.
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Integrate bilingual (English/French) CFIA-compliant labels, visible Fairtrade logos, and a QR code linking to the brand’s sourcing story.
Risk Mitigated:
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Ensures regulatory approval for market entry.
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Builds brand loyalty through visible, verifiable commitments to ethics and sustainability.
05
Certification Playbook
Pre-Emptive Fairtrade Certification Strategy
Why:
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Ethical certifications are no longer "nice-to-have" — they are critical trust signals for both consumers and future B2B partnerships (e.g., grocery stores, restaurants).
Strategic Moves:
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Begin the certification process with FLOCERT before launch to avoid costly rebranding or relabeling later.
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Integrate compliance tracking into the sourcing relationship from day one (traceable lots, labor practices documentation).
Risk Mitigated:
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Avoids post-launch certification delays or reputational risk.
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Provides leverage in retail negotiations and boosts marketing credibility.
