July 14, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

The Green Coffee Company (GCC), a Legacy Group portfolio company, announced its acquisition of 1,389 acres of coffee farmland in Colombia to become the largest coffee producer in the country.

Coffee cultivation began in Colombia in the mid-1830s, becoming its main export crop throughout the 20th century. Today, the country is the second largest coffee producing country in Latin America, outranked only by Brazil, with 875,000 hectares of coffee plantations across 14 growing regions. In 2019 the country accounted for 10 percent of global coffee production, and in 2020, produced 14 million 60-kilogram bags. On average, 75 percent of the country’s output is exported, and the crop accounts for between 10-16 percent of the country’s agricultural GDP. 

Aside from being one of the world’s top coffee producing countries, Colombia is also one of the world’s top coffee consuming countries, ranking third with almost 2 million 60-kilogram bags consumed from the last crop, according to Statista. 

This deal follows a close by the company on a $13.2 million Series B in January 2022. At that time, the company also announced it had contracted on the purchase of 2,340 acres adjacent to its existing farms, essentially doubling its land holdings. 

This latest acquisition marks the company’s second for the year, bringing total landholdings to 6,372 acres, and total coffee trees to an incredible 7.2 million in less than five years of existence.

Headquartered in the U.S., GCC is a consolidated farming enterprise with operations based in Medellin, Colombia. Its business model allows the company complete control of the entire supply chain, from cultivation to processing (the coffee grown on GCC’s farms is processed in two primary wet mills for de-pulping, sorting, and drying), and on to direct trade with end clients.

Located in Salgar, Colombia, a small town 90 kilometers from Medellin, this newest acreage avails GCC of the benefits of even greater economies of scale vis-a-vis lower cost of production, an easing of farm management, and the optimization of existing infrastructure capacity.

Since its inception, the company has grown exponentially to reach its current standing as the top producer in Colombia. However, GCC is not resting – it has now set its sights set on becoming the largest producer of arabica coffee in the world over the next two to three years.

It also feels that it is now appropriately positioned to execute its upcoming Series C, which is set to be officially announced in Q3 of this year. The offering will be open to institutional investors,  accredited individual investors, and coffee industry participants.

Proceeds from the fundraising will be used to further expand operations in Colombia and solidify its dominant market position, and to build a U.S.-based coffee roasting operation as a way to expand its value chain.

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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