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Rhizo Coffee Rhizo Coffee A Novel Fermented Coffee Product By Ani Morison A thesis Submitted to the Victoria University of Wellington in partial fulfilment of the requirements for the degree of Master of Innovation and Commercialisation Victoria University of Wellington 2018 Abstract The aim of this project was to discover whether there is a market for fermented specialty coffee beverages, as the niche for fermented products is expanding, due to people becoming more health conscious and aware about their health (Mellentin, 2017). This fermented beverage could potentially be less bitter due to lower acidity levels and easier to digest then most coffees due to its lower caffeine content. The coffee product would be made from high quality Arabica coffee beans, to ensure the best possible flavour characteristics (Driftaway Coffee, 2018) and ethical sourcing and sustainable practices would be implemented during the coffees development and fermentation processes. As the specialty coffee industry is expanding globally (Lee W. , Cheong, Curran , Yu, & Liu, 2015), it brings about the opportunity to disrupt the specialty coffee market with this fermented product through the collection of evidence-based qualitative and quantitative research, to build a strong business case for its commercialisation. The key market research findings from this study show that people generally like to experiment with their coffee and are willing to try fermented coffee beverages. Qualities that the majority of respondents look for in a coffee brand are good taste and flavour, ethical sourcing of their products and the use of high-quality coffee beans. Other findings suggest that the specialty coffee industry is a very saturated market (The Register Team (TRT), 2017) and in order to stand out in this market the product needs to have a strong point of difference, a good brand and an interesting story. Good taste and high quality are two traits that seem to be the baseline for coffee products in the New Zealand specialty coffee market (Anthony, 2014). The key scientific findings are to be confirmed in subsequent laboratory trials, which will aim to validate the science in the papers by Lee, Wai Cheong , Curran, Yu, & Shao Quan, 2016b; Lee, et al., 2016c further. The results from this project have enabled the development of a business strategy that primarily targets those who earn between $50,000-$99,999 New Zealand Dollars (NZD) per annum (p.a.) in the age range between 18-34 years old. This subgroup could be expanded to those who earn $50,000+ NZD p.a. and target millennials (born between 1980 and 2000 or 18-38 years old) in future research (Goldman Sachs, 2018). In the early stages of the project if the science is validated on a small scale, capital could be raised through a crowd funding platform like Kickstarter, so that subsequent trials can Page | 2 Student ID: 300427190 continue (Kickstarter, 2018a). When the business case for the product is strong, key investors will be targeted for their assistance in future product development, verification and market validation. This strategy is a part of the business model for the project that outlines the best course of action given the current market research and scientific evidence that is available. If this project were to be successfully funded and a minimum viable product were to be developed, large scale laboratory trials could be conducted bringing the product one step closer to commercialisation. If the product were to reach this stage, it would allow specialty coffee consumers the opportunity to experience a fermented coffee beverage that uses ethical and sustainable practices and potentially contains unique flavour nuances, health benefits and less bitter compounds. Page | 3 Student ID: 300427190 Acknowledgements I would like to acknowledge and thank the course coordinator Jenny Douche, my supervisor Robert Keyzers, Jennifer Anderson, Andrew Munkacsi, Cintya Del Río, my course peers and the specialty coffee research participants; without whom, the formulation of a business case for new product development would not have been possible. Page | 4 Student ID: 300427190 Contents Contents .................................................................................................................................................. 5 Chapter 1: Background ......................................................................................................................... 13 What is Specialty Coffee? ............................................................................................................. 13 Current Situation: Specialty Coffee Industry ................................................................................ 15 Fermentation ................................................................................................................................ 17 Fermentation and Coffee .............................................................................................................. 17 Fermented Coffee Products Worldwide ....................................................................................... 18 Kopi Luwak Coffee......................................................................................................................... 19 Kopi Luwak Direct ................................................................................................................. 20 The Process ........................................................................................................................... 20 Social Responsibility .............................................................................................................. 21 Price of Kopi Luwak ............................................................................................................... 21 Overall Quality of Caged Kopi Luwak Coffee ........................................................................ 22 Conclusions ................................................................................................................................... 22 Black Ivory Coffee ......................................................................................................................... 23 The Process ........................................................................................................................... 23 Social Responsibility .............................................................................................................. 24 Price of Black Ivory Coffee (2018) ......................................................................................... 25 Black Ivory’s Mission ............................................................................................................. 26 Page | 5 Student ID: 300427190 Black Ivory Conclusions ......................................................................................................... 27 Afineur .......................................................................................................................................... 27 Afineur: Cultured Coffee ....................................................................................................... 28 Afineur Conclusions .............................................................................................................. 30 Conclusions ................................................................................................................................... 31 Coffee Fermentation in the Digestive Tract: Palm Civets and Black Elephants ............................ 32 Scientific Literature: Methodology Development for Rhizo Coffee ............................................. 34 R. oligosporus I ...................................................................................................................... 34 R. oligosporus II ..................................................................................................................... 34 Y. lypolytica I ......................................................................................................................... 35 Y. lypolytica II ........................................................................................................................ 36 Summary ....................................................................................................................................... 37 Introduction to the Proposed Fermented Coffee Product ........................................................... 38 Questions to Consider ........................................................................................................... 38 Opportunities that were present .......................................................................................... 39 The Proposed Developmental Strategy and Business Model ....................................................... 40 The Developmental Strategy ................................................................................................ 40 Business Model ..................................................................................................................... 40 Project Objectives ......................................................................................................................... 41 Product Development Objectives ......................................................................................... 41 Business and Commercialisation Objectives ......................................................................... 42 Page | 6 Student ID: 300427190
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