Gostoso Coffee: securing the bean-to-cup journey

Learning outcomes At the end of the case discussion, students should be able to: Case overview/synopsis In September 2024, Colin James Francis, founder and chief executive officer (CEO) of Gostoso Coffee, faced a critical decision at the company’s headquarters in Dubai. Since 2019, Gostoso Coffee had grown quickly by working directly with coffee producers and selling premium coffee products to international consumers and business customers. Its model allowed the company to expand fast without owning coffee farms. By 2024, this model was under pressure. Coffee prices had increased, supply had become scarce and Brazil, one of the company’s main sources of coffee, had faced climate-related production problems. At the same time, demand for premium and specialty coffee continued to rise. Gostoso Coffee had enough coffee reserves for only 12 weeks, and Colin needed to decide how to secure supply for the future. He considered two main options. Gostoso Coffee could continue working with producer partners, preserving flexibility and avoiding a large investment. Alternatively, the company could invest approximately US$10m in company-controlled plantations in Tanzania and Papua New Guinea. This second option could improve long-term control over supply and support the company’s sustainability goals. However, it also required high investment and the ability to operate in unfamiliar countries before generating returns. Developed for final-year undergraduate courses in Supply Chain Management, International Business and Business Strategy, this case helps students analyze supply chain trade-offs, international expansion choices, emerging-market risks and sustainable growth strategies. Complexity academic level This case is designed primarily for final-year undergraduate business students. It can be used in courses such as Supply Chain Management, International Business and Business Strategy. The case is especially appropriate for classes addressing supply chain integration, internationalization entry modes, vertical integration, sustainability-oriented growth and strategic decision-making under uncertainty. Subject code CSS 11: Strategy.