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January 12, 2015

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w w w. m a i n e b i z . b i z 23 Ja n ua r y 1 2 , 2 0 1 5 overnight, coffee drinkers could easily find French roast brews at the same place they bought their gas. "Suddenly people were paying $1 for coffee, not a quarter," says Hildreth. Hildreth and Skaling rented an old garage, and taught themselves how to roast coffee on an old popcorn pop- per. On the eve of Jan. 1, 1997, the pair roasted — or, actually, over-roasted — their first batch. e smell and the smoke were so bad that a friend driving nearby thought his car was on fire. ("We didn't time it right," Hildreth recalls.) at first year, they roasted 15,000 pounds of coffee and generated $39,000 in sales, making deliveries in a Dodge Neon. It was rough at first. Prices for green coffee beans spiked. Much of their product went out the door as free samples meant to woo customers. To make extra cash, Hildreth guided whitewater rafting trips. To save money, he slept above the store. "at first year was grim," he says. But one relationship at a time, the company grew — and not always on a straight upward trajectory. e Java Joe's in Augusta closed. In 2007, they closed a shop in Bethel after a seven- year run. ere are now two Java Joe's locations — one in Farmington and another near Sugarloaf. One key to Carrabassett's success, Hildreth says, has been building a cli- entele beyond Maine's borders. About 90% of the business comes from whole- sale customers and about 10% of whole- sale business comes from out of state. "at's the reason we can survive here," says Hildreth, 66, who bought out Skaling's share of the business in 2009. "ere's just no way we could survive on the local economy." A distribution agreement with Sysco allows Carrabassett to ser- vice sizable customers like Idexx and Sunday River that would be impos- sible for Hildreth and his small staff to service on their own. About 10% of the company's sales are mail ordered directly to 2,000 con- sumers around the country — as far as Alaska — many of whom discovered the coffee while on vacation in Maine. Its five-pound bag, which Carrabassett offers for a rate that amounts to less than $10 per pound, including the cost of shipping, has been popular with mail-order customers. Influx of roasters puts Maine on the map Carabassett's growth happens as the appetite for specialty coffee has never been more intense. e retail value of the U.S coffee market is estimated at $46 billion. More than half of that market — in both volume and dollars sold — is made up of specialty coffee, according to the Specialty Coffee Association. "As people become more interested in local, sustainable and delicious food, they naturally become interested in things like specialty coffee," says Heather Ward, research analyst with the Santa Ana, Calif.-based trade group."[Specialty coffee] is often a local business, is markedly more delicious and places an emphasis on sustainability and fair practices." So it's no wonder that other Maine-based roasting faciliities are also growing. Wicked Joe's, which has been in Maine since 2003, moved to a 25,000-square-foot facility in Topsham in December. Coffee By Design, founded in 1994, moved its roastery into 45,000 square feet on Portland's Diamond Street in March 2014. e wave of newer coffee roasters includes Matt's Wood Roasted Organic Coffee in Pownal, Crooked Porch Coffee in Bar Harbor and Tandem Coffee Roasters in Portland. "Maine is becoming known for outstanding specialty food." says Mary Allen Lindemann, co-owner of Coffee by Design. "e microbrew- eries and distilleries have really put Maine on the map and it makes sense that coffee is a part of that." ough there are more play- ers competing for shelf space, "what we all do will raise awareness that we have great coffee in Maine," says Lindemann. "And that helps all of us." Hildreth says that the influx of new roasters have caused a "bit of a dent" in sales. But he adds: "Coffee is a huge industry. By getting just a tiny slice of that market, you can make a good go of it." He stresses that the business hinges on strong long-term relationships — like the one he's had with customers like Chip Gray, owner of Freeport's Harraseeket Inn. Gray has been taken by Hildreth's diligence and tenacity, from same-day trouble-shooting to the six different attempts he made to come up with a Harraseeket Blend for the historic inn. "He's an absolute rock, and a wicked- nice guy," says Gray, who hosts about 40,000 guests a year. "He's always here making sure that everything is just so. He's like a whirling dervish. I've never seen anything like it." J e n n i f e r Va n A l l e n , a w r i t e r b a s e d i n Ya r m o u t h , c a n b e r e a c h e d a t e d i t o r i a l @ m a i n e b i z . b i z Business Services Yes. We Do That. Business Checking Business eDeposit Business Savings Business Black Visa ® Bankcard Processing Real Estate Loans Construction Loans Acquisition Loans Equipment Loans Letters of Credit mainesavings.com Bangor | Brewer | Corinth | Ellsworth | Hampden Jax Lab | Milo | North Vassalboro | Old Town For more information, call Lea Rust: 207.857.9007 From our family to yours, we wish you a happy and healthy new year. 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