By John Harrington, Senior Equities Reporter, Proactive Investors, UK.
For an investment of £27,300, Leni Gas Cuba has secured a 10% stake in a company looking to promote Cuban coffee round the world.
Cuban specialist investment company Leni Gas Cuba Limited (ISDX:CUBA) has acquired a 10% interest in The Cuba Mountain Coffee Company Ltd (CMC) for £27,300.
CMC is an English company founded in 2013 to globally promote a single-origin gourmet coffee from Cuba’s famous Guantanamo region, both as green beans and also via CMC’s own bespoke coffee brand, “Alma de Cuba”.
CMC is in the process of seeking approval from the Cuban authorities to secure green bean coffee supplies.
It is also working towards formalising a definitive ten-year (extendable) international economic association (IEA) with the authorities that will provide, over a five-year period, capital and equipment to improve the processing and quality of green beans from the region. In return, CMC will obtain the rights to an increasing proportion of this production for global marketing.
If all goes to plan, the definitive IEA should be completed by the end of this year.
Through the planned investment over the course of the next 10 years, CMC aims to work together with coffee processors in arguably Cuba’s most ideal coffee growing region, the Guantanamo Province, to provide processors with modern techniques, technology and resources, Leni Gas Cuba told investors.
As the quality and quantity of the green coffee harvests gradually improves each year, CMC aims to increase worldwide distribution of both green Cuban coffee to commercial and independent roasters and roasted Cuban coffee under its “Alma de Cuba” brand.
The IEA is designed to implement a programme of monitored ecological sustainability in conjunction with the relevant Cuban government department and increase trading of green beans in the UK, Europe, Asia and potentially the USA if and when the circumstances allow.
The IEA envisages that CMC will provide the machinery and technology over five years to improve the quality and quantity of beans in return for rights to purchase premium Alto Serra coffee.
In addition, the IEA envisages the government agency providing commitments for exclusive supply of coffee from the Guantanamo Province. The final IEA will cover trademarks, pricing, micro-region designation and other points.
“The Cuban Coffee Industry will benefit from the latest agricultural techniques and expertise that CMC can bring to improve this famous agricultural sector,” said David Lenigas, Leni Gas Cuba’s executive chairman.
“Although there is still a lot of work to be done to formalise the contractual relationships between Cuba Mountain Coffee and the Government, we are look forward to being a valued contributor to CMC’s efforts in boosting Cuba’s coffee production and exporting this valuable premium product to the world,” he added.
Source: Proactive Investors
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