Coffee concept sold to Saudis

Will Padilla is here from Costa Rica for the Fairtrade Supporter conference and to visit customers. Photo / Supplied

Kiwi coffee chain Esquires has struck a "dream" deal with a Saudi Arabian sheikh in which its concept will be exported to the Middle East.

The Auckland-based Deeks family owns the Canadian-developed Esquires franchise rights outside Europe and North America.

It is behind 61 stores in New Zealand, Fiji, China, and the United Arab Emirates and has just signed an agreement in Saudi Arabia with Sheikh Anas Abu Dawood.

The sheikh's family owns one of the largest consumer goods trading and exporting companies in the Middle East.

"You can't find a house without his products throughout most of the Middle East. So these guys are dream partners," Stuart Deeks said.

The first of a planned 35 stores has already opened in the Red Sea Mall in Jeddah.

Another two stores would open their doors in Jeddah within the next three months. From there the intention was to open four stores annually across the country until the agreed number was operating.

"Long term, the deal will be worth tens of millions to the New Zealand economy," Deeks predicted.

All coffee houses would use Auckland-roasted 100 per cent Fairtrade organic coffee. The first three stores had been fitted out with Kiwi-made components and Deeks hoped the other stores would follow suit.

The stores would differ from those in other parts of the world, with separate areas for men and women to accommodate the Islamic culture that the two sexes not mingle in public.

"It's required by religion and law," Sheikh Anas said.

"There are nice sections for women and children."

The two parties came together after an employee of the sheikh introduced them. The sheikh said he had been looking at entering the coffee house trade for a while and had checked out competing brands.

Sheikh Anas said Esquires had the right factors, including a great product and theme, good management and ownership.

He said with no bars or clubs - or alcohol - coffee houses were increasingly popular particularly for men who went to play chess or backgammon.

"The next generation, who have studied in the US and Europe, have come back and had the crave for your coffee."

He said popular European coffee was fast replacing traditional chai tea and bitter Arabic coffee - often served with cardamom, saffron or other herbs and with no sugar or milk.

He had loved coming to New Zealand for the first time, describing it as a beautiful spot "at the end of the world".

Conference marks growth of fairtrade

New Zealand's first Fairtrade Supporter conference is being held in Wellington this weekend.

New Zealand is one of the fastest-growing markets in the world for Fairtrade Certified products.

Will Padilla, of the CoopeAgri Fairtrade coffee and sugar co-operative in Costa Rica, is here for the conference and to visit customers.

New Zealand accounts for 55 per cent of CoopeAgri's total sugar sales. Whittaker's is a major customer, as are Wild Bean Cafes and Robert Harris.

CoopeAgri's 12,000 farmers earn a premium for their products which goes into community initiatives.

Controlling the production chain was key, Padilla said. "We produce, process and export. That's the ideal for the farmer."