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Sounds like an excellent investment opportunity for someone with the cash and wanting to run a coffee plantation. I believe they said the business generates over $700,000 a year!
http://www.hawaii247.com/2014/06/17/hilo-coffee-mill-up-for-sale/?fb_action_ids=873755099308619&fb_action_types=og.likes&fb_ref=.U6HXz-eyCNM.like
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It's also been on the market for over three months.
Hopefully the new owners won't be scrutinized by DOT...
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quote:
Originally posted by macuu222
Sounds like an excellent investment opportunity for someone with the cash and wanting to run a coffee plantation. I believe they said the business generates over $700,000 a year!
http://www.hawaii247.com/2014/06/17/hilo-coffee-mill-up-for-sale/?fb_action_ids=873755099308619&fb_action_types=og.likes&fb_ref=.U6HXz-eyCNM.like
Also, they list PMM as an option, so it looks like they are willing to do a seller finance.
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Hey that 700k seems like some money.. but the way it's written it also sounds like it's gross revenue.. i.e. it has to be balanced out against the costs to make it.. of which the trib's version of the story there's the 6 acres in production.. and the 13 employees and the mortgage taxes etc.. which when you figure it has that place running pretty slim.. that is assuming the 700k is gross.. i.e. not net. If it's net that's an entirely different story.. though I think that would have been highlighted in the story if it was.
Then there's the uncertainty of the entire coffee industry here because of the borer... that frickin bug alone could screw the whole deal up.
And why did they abandon efforts to grow coffee in Puna in the past? I know there was some mention of that in the Shipman's history but I forget what it was. Anyone remember?
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The owners are marketing geniuses. I get my Puna coffee from another
source because I like it better but it has been hard to avoid the Hilo Coffee Mill brand. It has been pleasant to visit the Hilo Coffee Mill and I wish them luck in the sale.I hope that the new owners are as akamai at marketing as the current owners.
As an aside, I have to say I don't care much for the taste of macadamia nuts or pineapple in my coffee. To each his own, though.
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The two wahine who used to have the coffee place in Hilo Shopping Center called Kope Kope sold that store and bought the land and built what is now Hilo Coffee Mill .
They put up a huge amount of capital of their own and got loans to start what it is today.
$700K will get them out of debt by maybe 100K ,so they can start a new venture elsewhere.
Some of our family used to work for them.
Better coffee elsewhere in Puna .
They did install a HUGE solar array but had a horrific time with HELLCO to approve the grid tie . ( Years )
They have also a farmers market on Saturdays but we never go.
Coffee as a crop is fertilizer heavy feeders and very labour extensive / expensive .
Bugs also are a major setback and problem.
Better to plant dryland Kalo or other crops less intense than coffee in our opinion.
Good luck to the new owners of said establishment.
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$700K is not the selling price, it is the (Trib Herald) quoted annual revenue generated. The sale price (Just under 1.5Mil) is higher.
Based solely on that sale vs revenue, I gotta believe that the $700K is gross (if it were net, I would expect that it would have been sold without all of the recent publicity...)
It is a fun place to stop when we are going up to the volcano, with a great café cat, but, with 2 lefts, not as convenient as the now shuttered Koa Koffee Kafe.... much of the time, we wait for offerings in Volcano rather than doing the 2 lefts...
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They put up a huge amount of capital of their own and got loans to start what it is today.
Local "perception" is that they also put up enough political capital to make sure nothing resembling "competition" can exist for at least several miles in either direction.
Whether or not this is true, County has not seen fit to issue any other Special Uses within five miles -- the Mill got theirs just before the PCDP.
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fair value - assets and 3X net? what is the going rate for a business these days - any current business brokers reading along?
