(Inspired by the Social Capital Index located here on xigi.net, two analysts are posting their take on the enterprises listed in Deals in Play. Deals in Play is a new feature of the Social Capital Index that lists social ventures actively seeking capital. Following is Jason Rissman’s analysis of one of these enterprises.)
SPAVA COFFEE COMPANY
By Jason Rissman
Healthy coffee. Why didn’t I think of that?
Serving caffeine addicts and aficionados that have demonstrated a clear willingness to pay premiums for upgraded cups of joe, Spava’s poised to be the next big thing since non-bleached, stone ground 100% whole wheat sliced bread. I’ve long suspected that half of Starbucks customers are either on the way to or from the gym. Seriously, high end coffee seems to be a last standing vice amongst health conscious people, and Spava’s goal of introducing “organically grown, naturally fortified coffee for healthy living” looks dead on. While demand might not exist yet for healthy coffee, neither did it for bottled or vitamin-enhanced water.
Spava has distribution nationwide at HEB, Publix, Kings Market, and selected Whole Foods and Kroger stores. The team looks very solid. So what could stop it?
My main concerns for Spava surround is intellectual property and its competition. Building wider national distribution overnight will be difficult if a better known brand comes to town with a similar product. IP protection might be its only defense against entering rivals until its own brand becomes well known. Still, within the upscale healthy living space there always seems to be room for new names (and higher prices).
As for a social impact assessment, I suppose that depends on your view of caffeine. Is Spava aiding and abetting a guilt-free but unhealthy indulgence? Or are they just making an inevitable coffee habit a bit healthier? Either way, I can already hear the chatter by the elliptical machine: “Sure I have four cups a day… but the last one is SPAVA!”
