Equator Coffees • Wholesale to omnichannel with strategic financial guidance
Building the Foundation for Accelerated Growth
This bootstrapped CPG brand was ready to grow and secure funding.
Equator Coffees was born from a desire to produce great coffee with a great impact.
Although high-quality coffee was much in demand when Brooke McDonnell and Helen Russell founded the company decades ago, few coffee producers were talking about sustainability or social responsibility. Equator helped make coffee’s origins and supply chain (including details like pricing transparency and storytelling focused on their farmer partners) an integral part of its value.
Before Propeller
Equator Coffees spent its first 10 years successfully bootstrapping the business with no reliance on outside financing. It was focused on selling wholesale to restaurants, cafes, and resorts. But the company had not yet capitalized on other sales channels, such as digital, grocery, or retail. They realized it was time bring in a strategic CFO.
At the time, Equator employed a tax accountant and bookkeeper and had a strong grasp on profits and processes. With Propeller, it realized it had an opportunity to “graduate from high school and move on to college.”
Propeller solutions
When Equator first partnered with Propeller Strategic CFO Jeff Gustafson in 2011, it was averaging $5M in annual revenue; now the business has grown to well over $20M. Equator has weathered stock market fluctuations, battled strong competition, and realized the challenge of new channels like retail storefronts. Throughout it all Jeff has served as a partner, advisor, and confidante who understands startups, entrepreneurs, and their unique needs. Here's a look at how we helped Equator.
- Developed product pricing models, annual operating budgets, and long-term forecasts
- Evolved software stack from Peachtree to QuickBooks to NetSuite
- Assisted in outside capital raises (made investor introductions, led deal negotiations, and managed due diligence and documentation) in 2013, 2017, and 2020
Results with Propeller
- Built the business from wholesale-only to omnichannel
- Increased profitability targets from 3-5% EBITDA to 10-15% EBITDA
- Grew revenue fourfold by 2019, and despite the pandemic impact, grew 2022 revenue back above pre-COVID levels
- Created a professional board of directors with institutional and strategic investors
- Became a Certified B Corporation in 2011
- Named 2016 Small Business of the Year by the Small Business Administration, the first LGBT-certified business to earn this honor
- Currently operate nine retail cafes and work with over 400 wholesale partners including Chefs Thomas Keller, Dominque Crenn, and Tyler Florence
"The best decision I have ever made in my 28 years of running a business was engaging with Propeller Industries. With Propeller behind us, there was no opportunity we could not participate in. When we went out to raise money for the first time, we would have made serious missteps without Propeller to assist us."
Helen Russell
Co-Founder & Executive Chair, Equator Coffees
