The grinding of beans, the aroma of the brew, that smooth flavour that introduces you to the day. When it comes to coffee, we’re a nation obsessed and our days of being satisfied with a cup of instant are long gone. Now we value baristas, Columbian beans and expert roasting. Espressos, Americanos and cappuccinos – who could have seen this coffee culture brewing?

Well, one man, David McKernan did. Back in the ’90s when coffee machines were fancy equipment in restaurants rather than everyday kitchen appliances, he took a year out of his life to set up his own coffee brand, Java Republic.

“People thought I was mad,” laughs the man who talks a mile a minute – and that’s before he even has his caffeine hit.

“I probably was a bit mad but I had enormous self-belief.”

Twelve years’ experience with Bewley’s also worked to his advantage and in-depth knowledge of a market that was only growing.

“The consumer move from instant coffee to fresh ground happened fast, from about 1986 to 1992. We were following the American trend and people wanted quality.”

Building the dream

This was the driving force behind Java Republic and fresh, hand-roasted coffee was the order of the day.

“The dream was simple but to get there I had to get a roaster, equipment, private investors. I’ll never forget my first customer, Jeff in Westin Airport, he was a friend of my brother – probably the only reason I got the gig – but once people tasted the product, we grew from there.”

That was well before the Celtic Tiger hit and we got even bigger notions about ourselves.

“There was a Starbucks opening literally every day in the States, and people were travelling more, expecting this at home. The coffee culture exploded and with a coffee costing upwards of €2.80, there was a big mark-up for retailers.”

Along with the money came big dreams.

“In 2005, we started planing Java Republic HQ here in Ballycoolin. A cafe, offices and the first carbon neutral roastery in Europe. Between myself, Grace O’Shaughnessy (managing director) and Jeff Long (financial director) we borrowed €7m. The level of money we were allowed to borrow was extraordinary compared to our turnover. I’m a risk-taker and still am, so I thought the economy would keep on going. And then the recession hit.”

Tough times

David says he thought starting up a business was tough, recalling times where he ran out of petrol three times in one week he was so broke. The recession was a whole other story.

“If just one of those bank meetings went another way, if they had lost confidence at any stage, we were gone. I used to run six miles before going to the bank so that I was well able for the meeting.”

The only thing that kept Java Republic going was the fact that the stressed-out nation was turning to caffeine to get through.

“People wanted to meet friends and were just about willing to part with their €3 for coffee to keep them from going insane. Coffee sales never dropped and that’s the reason we survived.

“I’m proud of what we have achieved over the 17 years of business but I blame myself for what we put our team though at that time. We exposed ourselves to ridiculous levels of debt but we were one of the lucky ones. For every one of us, nine businesses were destroyed.”

Coffee farmers

Enough about that though, David says, clapping his hands to signal we’re moving on. Ever the optimistic, he launches into his recent trip to Australia.

“Melbourne – now that’s a city that has an amazing coffee culture.”

Getting on the road, looking at how other countries do coffee, that’s all part of growing the business for David, but travel isn’t just to funky cafes in San Fran and Sydney. It’s also about getting back to basics – the bean.

“It’s so important to get back to origin, the farmers. Myself and some of the team went to Columbia last year to look at different taste profiles. We’re also planning to go to Kenya and Rwanda in May but I’m not going to lie, some don’t want to go.

“They came to Ethopia with me and still haven’t forgotten what they saw. Extreme poverty, people dying on the street. Farmers have it hard, farmers in Ireland have it hard, absolutely. However, when you see those conditions, that’s not something you forget. It’s hard to make money out of farming when you have half an acre, live in a mud hut and the few bags of coffee you produce is the only cash you will get for the year.

“It’s a real eye-opener and, as a result, we buy a lot of coffee direct now. Also, about a quarter is Fairtrade, which is great but the problem is the trade doesn’t push it enough and it needs consumer demand. Many of the big companies don’t care, all they are interested in is shareholder value. We’re open and transparent about the cost price of coffee. For every €2.80 you’re spending on coffee, the farmer is only getting about 2c of that. Being completely transparent and adhering to the highest ethical standards was important to us from the start.”

Cup of Cha

Travel hasn’t just opened David’s eyes, it’s also opened up some real business opportunities.

“In 2006, I went to China with my Dad, tasting teas – green tea, black tea, speciality teas – I thought would never work here. And I’ll tell you, we are a nation of tea drinkers, we love a cup of cha but a lot of the tea here is pure crap. So we started off with a range of nine world-class organic teas and that grew to 18. Now its 46 and they are selling great. We are exporting to Poland, Norway, Sweden and Portugal and we’re also hoping to sell into Australia and Iceland.”

Word has it that Java Republic tea has also been spotted on British Airways flights in recent weeks.

Finest Tea Leaves

With a high price point though, over €7 for a box of 15 tea bags, they are costing a lot more than many Irish consumers are used to for a cuppa.

“This isn’t just your average cup of tea though. It’s world-class quality green tea from China, peppermint from Morocco, the finest verbena from Egypt – our tea is becoming so well known because the taste is excellent. Also, what many people don’t realise is that we have nearly 4g of tea in our pillows, that’s a lot and that’s why they are hand stitched so that you can reuse them and get three good cups. Tea is a beautiful business, it’s been such an eye-opener since we got into it and it’s not as harsh on the farmer.

“Coffee will always be my first love though, it’s what Java Republic was about from the start.”

And with that the phone buzzes and David is on to his next meeting, his next venture. It might be the copious amounts of caffeine or the antioxidants of the tea but, whatever it is, you can nearly see the cogs turning as he walks away. CL