Last year we loaned the coop about U$600 to get them started in the production of a brand new product that didn't previously exist in Nicaragua- honey wine, 100% organic, 100% fair trade. It was a small, relatively experimental loan to get them producing on a small scale, and it was very successful. The coop constantly sells out of their bottles immediately upon production, and at one point even sold out their entire production for 4 months, generating U$2500 in revenue in one single weekend. Their biggest bottleneck at this point is their limited, irregular supply of wine. This second loan opens up that bottleneck and sets the coop on a serious growth path for this high-margin product.
This loan of roughly|| U$1500 will set up a less risky, less labor intensive, more standardized system of production, which will produce about 140 bottles of honey wine every month. Furthermore, we're loaning them the money for a large order of newly re-designed stickers which should last them about 5 years. Finally, this loan includes an investment in their very own industrial boiling kettle, which will allow them to save money on renting that equipment, increase quality control, reduce the risks of moving the wine excessively, and increase efficiency. With this loan, the coop will have a more regular, abundant, and quality supply of this high-margin product, allowing them to delve deeper into this promising market. |