Special Topics in Financial Management

Business Plan

SUNRICE COFFEE

Presented to:

Ms. Arlene B. Maramot

Presented By:

Gasco, Dean Andrew V.

Icalla, Deserie Jeane M.
Selosa, Jenes Nicole M.
Uriarte, Ma. Cristina J.
Velasquez, Nelie Ann N.

December 2021

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TABLE OF CONTENTS

I. Business Overview ----------------------------------------------------------------- 3

II. Mission and Vision Statement --------------------------------------------------- 4
III. The Market
3.1 Customer Identification ------------------------------------------------------- 5
3.2 Market Size ---------------------------------------------------------------------- 5
3.3 The Industry and Competitive Advantages ------------------------------ 6
IV. Financial Analysis ------------------------------------------------------------------- 7
V. Social/Environmental Impact Analysis ----------------------------------------- 11
VI. The Team ----------------------------------------------------------------------------- 13

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 I. Business Overview

Filipinos are known as coffee drinkers. As we have noticed, many brands of

coffee products are flooding in the supermarket. As part of Filipino culture, every
morning people used to drink coffee and this practice came from our ancestors.
Nowadays, people become health conscious and that is why coffee makers also go with
the trend of adding health benefits. We come up with an idea of upgrading coffee, which
is made from rice grains. It is made from boiled roasted rice grain alternative for coffee
bean.

Instant coffee also known as soluble coffee is a coffee that was made from coffee
beans that have been roasted/ground, it is widely consumed type of coffee in the
Philippines. Coffee is healthy yet when an individual consumed more than 400mg of
caffeine per day which is equivalent to around four (4) cups of brewed coffee, can cause
negative effects in the body. Some of its unlikely effects are; it increases blood pressure
but is not applicable to regular coffee drinkers. In this interesting phenomenon,
researchers hypothesize that the effects of caffeine such as blood pressure-raising
varies depending on the tolerance of the consumer. Some coffee drinks contain large
amount of sugar and fat that is not healthy for the body. Coffee can also cause insomnia.
Therefore, drinking coffee in the late afternoon or early evening may harm the sleeping
cycle of an individual. Caffeine withdrawal leads to negative side effects such as
headaches, tiredness, and lethargy and usually goes away soon after some days of
caffeine abstinence. Because of the negative effects of coffee, some people tend to find
alternatives as substitute to satisfy their cravings. Ever since, roasted rice coffee is used
in the Philippines as a substitute for a high-priced coffee bean in the early 1990’s and
quite popular in the mountain region in the country. It was first introduced in Banana
Town in Ilocos as family business of Sarah Dabucon of Barangay Sinamar in the year
2003.
Our product is an improved version of coffee made from rice grains combined
with an organic localized rice and medicinal herbs to add the taste, aroma and the health

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benefits that the product would give. SunRice Coffee is an organic rice coffee that is
also made of rice germ. Rice germ is found in the lower tip of a rice seed and extracted
from a rice grain during the grinding process, which is known to have the highest
antioxidant of all the known grain with anti-oxidant content. It has also a complete
vitamin B complex and that helps release energy in our body and other essential
vitamins and minerals found in rice.

Rice Coffee can be a healthy alternative to standard coffee. It’s a caffeine-free

drink, so those who are trying to avoid caffeine won’t be able to get it from here. It is
rich in antioxidants and can be consumed like any other coffee. Also, it is a gluten-free
product and is not made from chemicals and artificial flavours. It boasts of many health
benefits and is hence a healthier option to opt for.

The product is extracted from the finest organic rice produced by our target
community which are the local rice farmers as they our main priority to be the supplier
of rice products. This step will be a great opportunity for our farmers to level up their
incomes despite of decreasing price of kilo of palay. In the future, as SunRise Coffee
become more successful in the market, the more farmers that we can help and raise
above.

II. Mission and Vision Statement

MISSION
To provide our customers with the best roasted rice coffee with the best service
and to help aid in the decreasing price of palay.

VISION
To become one of the leading producers of rice coffee, not only in our province
but also in the Philippines.

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 III. The Market

3.1 Customer Identification

The market aims to target supermarkets, restaurants, and coffee shops around
Calapan City. The company's aims to promote the health benefits of rice coffee include
its capacity to deliver quick and rapid energy, regulate and enhance bowel movements,
normalize blood sugar levels, and reduce the aging process, as well as provide the
human body with a crucial amount of vitamin B1.
SunRice Coffee also wants to introduce a new product to the market that will help
the consumers to live healthier. Rice coffee does not cause acid reflux, which is why it
is stomach-friendly, gluten-free, and low in calories. Though rice coffee does not deliver
the same level of satisfaction as ordinary coffee beans, it can serve as a stand-in if you
run out of coffee.

3.2 Market Size and Future Outlook

SunRice Coffee target market are the supermarkets, coffee shops and
restaurants that offer coffee as their beverage. According to the Statista Research
Department, the Philippines used approximately 3.3 million 60 kilogram bags of coffee
in 2020. This demonstrates an upward trend in coffee consumption over time. In terms
of green coffee exports, the country ranked sixth in the Asia-Pacific region in 2019. In
comparison to other Asian Pacific countries, the productivity level was low. Globally,
the market size for instant coffee, as of 2016, was valued at 28 billion U.S. dollars. The
Philippines has been one of the leading consumption markets for soluble coffee, also
known as instant coffee, since 2011. 

There is a high demand in Rice coffee production not only in the Philippines but
also abroad. According to DOLE or Department of Labor and Employment On 22
January 2008, it received a DOLE assistance of P895, 500 for its rice coffee production.
Over the last several years, the venture prospered and on 24 July 2014, the DOLE

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Regional Office 1 infused another fresh financial assistance in the amount of P780,
620.00.
Apart from the financial support, the DOLE brought together the services of other
agencies like DTI, DAR, DOST, DA, NFA, LBP, provincial government of Ilocos Norte,
and the municipal government of Banna, which provided the cooperative with full
technical and marketing support.

According to Katherine Smith, BHS Health, San Francisco State University .Rice
coffee can be a healthy substitute for regular coffee. Because it is a caffeine-free drink,
those who are trying to avoid caffeine will be unable to obtain it from here. It is high in
antioxidants and can be consumed in the same way as any other coffee. Furthermore,
it is gluten-free and free of chemicals and artificial flavors. It has many health benefits
and is thus a healthier option to choose. Rice coffee is a coffee substitute made from
roasted rice. It is a common drink in Japan and in Asian countries. The drink is made
from roasted brown rice, water, and a sweetener. The drink is believed to have multiple
health benefits, such as lowering blood pressure and preventing heart disease. People
who use rice coffee reported having a more balanced diet, losing weight, and generally
feeling healthier. For the people who are health conscious but still want to drink coffee
we offer an alternative way to drink coffee. It just not gives you the satisfaction of
drinking a coffee but it also helps you become healthier.

3.3 The Industry and Competitive Advantages

Calapan City is an affluent area with a high density of restaurants, supermarkets

and coffee shops, an ideal area to market our product. While there are some coffee
shops and supermarkets that already have their coffee supplier. Rice Coffee is a
production type of business that produces a type of coffee that isn’t commonly known
yet that’s why only few people know the product. We aim to cater to the uniqueness and
the health benefits that the rice coffee will give. We also looked forward to our product
being well known and that helps many people in terms of its health benefits.

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IV. FINANCIAL ANALYSIS

4.1 Capital Sources

The members of the business decided to fund money from their own
means to finance the business coming from their savings. The capital of SunRice Coffee
will be financed by the owner’s named Dean Andrew V. Gasco, Deserie Jeane M. Icalla,
Ma. Cristina J. Uriarte, Jenes Nicole M. Selosa, and Nelie Ann N. Velasquez with an
equal share of 20%.

NAME OF OWNER SHARE AMOUNT

Dean Andrew V. Gasco 20% 10,000
Deserie Jeane M. Icalla 20% 10,000
Ma. Cristina J. Uriarte 20% 10,000
Jenes Nicole M. Selosa 20% 10,000
Nelie Ann N. Velasquez 20% 10,000
TOTAL CAPITAL 100% 50,000
CONTRIBUTION

4.2 Itemized Start-up Cost

Quantity Ingredients Price Total

50kg Organic Rice Php 45.00 Php 1,125.00

200g Nescafe Coffee Php 399.00 Php 399.00

2kg Sugar Php 45.00 Php 90.00

2L Plant Based Php 80.00 Php 160.00

Milk (Optional)
1 gallon Water Php 35.00 Php 35.00
TOTAL Php 604.00 Php 1,809.00
COSTING

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 PACKAGING
Quantity Equipment Price Total

100 pcs Recyclable Coffee Php 5.00 Php 500.00

Bags
100 pcs Coffee Glass Jar Php 45.00 Php
4,500.00
100 copies Printed logo Php 5.00 Php 500.00

100 pcs Paper bag Php 10.00 Php

1,000.00
TOTAL COSTING Php 65.00 Php
6,500.00

KITCHEN TOOLS
Quantity Equipment Price Total
1 set Measuring cup Php 50.00 Php 50.00
1 set Measuring spoon Php 50.00 Php 50.00
1 Frying Pan Php 245.00 Php 245.00
1 set Stainless Ladle Php 290.00 Php 290.00
1 Coffee Grinder Php Php
2,999.00 2,999.00
1 Coffee Maker Php Php
2,000.00 2,000.00
1 Coffee Blender Php 299.00 Php 299.00
5 pcs Saucer Php 24.00 Php 120.00
5 pcs Teacups Php 37.00 Php 185.00
TOTAL COSTING Php Php
5,994.00 6,238.00

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 Cleaning Tools
Quantity Equipment Price Total
2 Kitchen towel Php 45.00 Php 90.00
2 rolls Kitchen Tissue Php 55.00 Php 110.00
1 Trash can Php 200.00 Php 200.00
10 pcs Garbage bag Php 10.00 Php 100.00
1 Dustpan Php 45.00 Php 45.00
1 Broom Php 150.00 Php 150.00
2 Dishwashing Php 42.00 Php 84.00
Liquid
2 Sponge Php 15.00 Php 30.00
1 Hand soap Php 88.00 Php 88.00
TOTAL Php 650.00 Php 897.00
COSTING

MAYOR’S PERMIT

Barangay Clearance Php 100.00

SSS (membership) Php 550.00

Sanitary and Health Php 100.00

Certificate
Fire Inspection Certificate Php 100.00

Sedula Php 350.00

TOTAL Php 1,200.00

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 4.3 Budget

BUDGET

PARTICULARS ALLOTED AMOUNT ESTIMATED INITIAL

AMOUNT
Raw Materials Php 5,000.00 Php 1,809.00
Kitchen Tools Php 10,000.00 Php 6,238.00
Cleaning Supplies Php 3,000.00 Php 897.00
Packaging Php 10,000.00 Php 6,500.00
Facilities/Rent Php 20,000 Php 20,000
Permits and Licenses Php 2,000.00 Php 1,200.00
TOTAL AMOUNT Php 50,000 Php 36,644.00

The start-up capital is Php 50,000.00 will be contributed by the said

proponents. The capital of SunRice Coffee financed by the owner’s named Dean
Andrew V. Gasco, Deserie Jeane M. Icalla, Ma. Cristina J. Uriarte, Jenes Nicole M.
Selosa, and Nelie Ann N. Velasquez with an equal share of 20%.

4.4 Projected Annual Financial Statement

PROJECTED SALES PER MONTH

Quantity
Product/Item Price Grams (Number of Total
Purchase)
Rice Coffee Php 40.00 50 grams 25 Php 1,000.00

Rice Coffee Php 80.00 100 grams 25 Php 2,000.00

Rice Coffee Php 160.00 200 grams 25 Php 4,000.00

Rice Coffee Php 200.00 250 grams 25 Php 5,000.00

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 Rice Coffee Php 240.00 300 grams 25 Php 6,000.00

Rice Coffee Php 320.00 400 grams 25 Php 8,000.00

Rice Coffee Php 360.00 450 grams 25 Php 9,000.00

TOTAL Php 175 Php 35,000.00

1,400.00

V. SOCIAL/ENVIRONMENTAL IMPACT ANALYSIS

More than half of the world's population eats rice as their primary source of nutrition.
It is a staple meal because of its low cost of production and the nutrients it provides,
such as carbohydrate, fiber, and calories.

Because of the health benefits rice provides, Filipinos, who are creative and enjoy
coffee, created a healthy coffee made from rice as a substitute for real coffee, known
as rice coffee. Rice coffee does not have the same amount of caffeine as regular coffee,
but some who have tried it have said that it relieves stomach pains. Rice coffee does
not produce acid reflux, which is why it is stomach-friendly, gluten-free, and low in
calories. Though rice coffee does not deliver the same level of satisfaction as ordinary
coffee beans, it can serve as a stand-in if you run out of coffee. Filipinos prefer this to
coffee in the morning for a variety of reasons, one of which is because it is less
expensive than coffee beans and can be consumed by youngsters.

The business aims to help the local farmers of Oriental Mindoro specifically the
Municipality of Naujan through making them their principal supplier of palay that will be
used for the production of rice coffees since agriculture is the main source of income of
most of the household in Naujan. Due to the farmers' issue with the low price of palay,
it drove the business owners to propose the business to help in the purchase of palay
at the highest price possible to support the farmers in having an acceptable income.

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 The coordination of the business with the local farmers will help in the current status
of the economy.

The business intends to aid in the local farmer’s dilemma while giving their customer
the satisfaction by providing quality and best tasting rice coffee.

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 IV. The Team

Gasco, Dean Andrew V. Icalla, Deserie Jeane M.

Selosa, Jenes Nicole M.

Uriarte, Ma. Cristina J. Velasquez, Nelie Ann N.

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