envisioning and creating a unified specialty coffee member...

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SCAE Chapter Update on Unification

March 1, 2016

Table of Contents

2

Where We Started 3

The Journey to Unification 6

The Unified Association 8

Member benefits 14

What happens now?

Where We Started

3

97%

3%

94%

6%

Positive Negative

Currently

SCAA Members SCAE Members

Outlook on the industry is positive in general, both currently

and for the future.

State of Speciality Coffee Industry

94%

6%

96%

4%

Positive Negative

Future Outlook

SCAA Members SCAE Members

4

More than 90% are optimistic or hopeful regarding the

possibility of a unified, global organization.

69%

23%

0%

8%

38% 42%

8% 13%

55%

45%

0% 0%

53%

34%

6% 7%

Optimistic Hopeful Pessimistic Not Sure

SCAA Board SCAA Members SCAE Board SCAE Members

Outlook on Unified Organization

5

The journey to Unification

6

7

JUN

‘15 AUG

‘15

SEP

‘15

NOV

‘15

JAN

‘16

MAY

‘16

‘Collaboration’

Talk @ Re:co

World of Coffee

Gothenburg

SCAE & SCAA

appoint external

advisors

SCAE & SCAA

member

communications

SCAE & SCAA

member

survey input

SCAE & SCAA

boards approve

unification

proposal

SCAE & SCAA

members vote to

support unification

APR/

MAY

‘16

SCAE Member

and Chapter Q&A

Forums

The Unified Association

8

Vision

Together we will be an effective,

dynamic, and authentic

organization that gives voice and

substance to the possibilities for

speciality coffee worldwide.

SCAA+SCAE Combined Association Brand Framework

9

Mission

To engage, inspire and expand a

sustainable global speciality coffee

community through shared values

and core commitments.

SCAA+SCAE Combined Association Brand Framework

10

Core Commitments Global/Local Reach

Community Involvement

Support Volunteers and Chapters

Standards, Research and Education

Value Chain Sustainability

Growth in the Speciality Coffee Industry

Personal Relevancy

One Member One Vote

SCAA+SCAE Combined Association Brand Framework

11

• Global Voice • Movement Based • Desirability • Strong Vision • Growth Advantages • Scale Service Lines • Flexible/Adaptive Structure, Tax, Legal • Minimizes Tax Liability • Physical and Virtual Presence

• Language Barriers • Operationalize Transition; Avoid Bureaucracy • Cultural Integration • Clarify Link of Value Chain Benefit to Consumer

• Leverages Staff Strengths • Cross-Functional, Collaborative, Non-

Hierarchical • Minimizes Disruption • Member Benefit Based • Avoids Optics of Takeover • Preserves Cultures • European & US Balance • Governance Controls • Community & Guild Focused

• Detailed Budgets and Time to Implement

Benefits and Challenges Associated with Unification

Combined revenues of $15 million USD

Tax exempt status

No debt, limited liabilities

Financial metrics and ratios reflect best

practices to deliver member value

A financially strong, unified business plan delivers member value.

13

Legal Entity

HQ – Global Operations

Centre

Global

Education Research Sustainability Events Advocacy &

Leadership

Operations Centre

Membership Community (Guilds, Local Chapter Communities, Virtual Platforms)

Global Member Value Centre

15

The balance has been provided in three

aspects:

① Between the two Boards; Equal membership

② Between the two executive teams

③ Between the Board and the Executive

(Governance)

Balance is built-in for an initial integration

period.

This structure is guaranteed for the initial

period of 5 years.

SCAE SCAA Balance

16

Member Benefits

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MEMBER CENTRIC UNIFIED

ASSOCIATION

Decentralised to foster representation, inclusivity, collaboration, and communications

MEMBER

inte

ractio

n

GLOBAL

ACTIVITY PLATFORMS Education EU

Sustainability US

Events US

Research US

Membership EU

Marketing EU

SPECIALISED

MEMBER ACTIVITIES

& COMMUNITES Guilds

Trainers (ASTs)

Competitions

Committees

MEMBER

MEMBER

NETWORK Local – Chapters Global – Virtual

Pooled vs.

competing resources

Global members = greater resources

Enhanced sourcing of

funding

Enhanced efficiency

Enhanced advocacy

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MEMBER

BENEFITS

Increased Community

More events Globally

More events Locally

Global guilds acting locally

Member-centric

research

Enhanced Virtual

connectivity

Global Standards

Global Sustain-

ability focus

Nurturing leadership

21

BARISTA

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ROASTER

Increased Community

More events Globally

More events Locally

Global guilds acting locally

Member-centric

research

Enhanced Virtual

connectivity

Global Standards

Global Sustain-

ability focus

Nurturing leadership

Access to Sales Market

Access to Global

Traders

Access to Global

Farmers

Global Trends

Supply chain

sustainability

One Global System

Global Technical standards

Equivalency Jan 2017

Improved Quality Control

Improved content

Enhanced Professional Status as AST/SLI

Global Trainer Forums

Enhanced brand Equity

Increased training content

23

TRAINERS

ASTs/SLIs

Larger industry

Global Consumer

trends

Access to Innovation

Global Education Platform

Networking

Brand recognition

Access to Talent

24

RETAILER

25

Larger industry

Growth in new

markets

New equipment potential

Innovation Networking

Brand recognition

Sponsorship opportunity

globally and locally

MACHINE MANUFACTURER

26

Producer voice in the

industry

Greater global

access to buyers

Industry growth

Enhanced digital

connectivity

Global standards

More producer focused events

Greater access to research

PRODUCER

What happens now?

27

IN FAVOUR of the Unification?

membership with SCAE be transferred to the Unified Global Coffee Association

and

authorise any director of the Board of SCAE to agree and execute any necessary

forms on your behalf to implement such membership transfer.

Please complete it electronically www.scae.com/unification by no later than 17 May 2016

23:59 GMT+1.

COMPLETE CONSENT FORM

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To be represented at the Extraordinary General Meeting (EGM) by SCAE

President Mr. Paul Stack or any other person who you appoint and you know

will be present at EGM which will take place at 12pm on Monday, 23rd May

2016 at the Hilton Hotel, Paddington, London, United Kingdom.

You can complete both electronically at www.scae.com/unification by no later

than 17 May 2016 23:59 GMT+1.

COMPLETE PROXY FORM

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scae.com/ unification

scaa.org/ unification