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INTERNATIONAL NEGOTIATION

PROPOSAL

PREMIUM COFFEE · COLOMBIA — TEXAS

Strategic Expansion into the North American Market through Sustainable Commercial Alliances

Nexus Trade S.A.S. Company Texas, USA Counterpart

Colombian Specialty Coffee Product

B2B Direct Import Modality

NEXUS TRADE S.A.S. · CORPORATE MAGAZINE · VOL. I · 2025 NIT 901.234.567-8 · BOGOTÁ, COLOMBIA · CONFIDENTIAL DOCUMENT

Evelyn Iveth Barros Mendoza · Melissa Paola Beltrán Marenco · Jesús Manuel Camargo Cabrera · David Elías Garizabalo Rodriguez · Dania Paola Gil Olmos

SECTION I — Company Description

NEXUS TRADE S.A.S. — Bogotá, Colombia

Colombian company specialized in the export and international commercialization of premium agroindustrial products: specialty coffees, fine aromatic cacao, and herbal teas to North American and European markets.

Corporate Purpose

Nexus Trade S.A.S. aims to export, commercialize, and internationally distribute high-quality Colombian agroindustrial products, with emphasis on specialty coffees, fine cacao, and natural derivatives. It operates as an intermediary between certified rural producers in Colombia and specialized distributors in North American and European markets. The company integrates sustainable value chains through fair trade agreements, certificates of origin, and CSR initiatives with communities in the Coffee Belt, Nariño, and Cauca.

Mission

To connect Colombia's agroindustrial potential with the world's most demanding markets through ethical, sustainable, and long-term relationships. We are the bridge between the Colombian rural producer and the globally conscious consumer, ensuring exceptional quality and shared value across the entire supply chain.

Vision

By 2030, to be Colombia's benchmark specialty coffee exporter in North America and Europe, recognized for commercial excellence and social impact. We aspire to surpass USD 5 million in annual exports and partner with at least 200 certified coffee-farming families.

Strategic Objectives

01. Market Positioning: Establish a presence in the North American market through agreements with at least three importers in Texas during the first year.

02. Diversification: Expand the product portfolio by incorporating at least two new product lines (fine cacao and herbal teas) within 18 months post-negotiation.

03. Financial Sustainability: Achieve an 18% operating margin on exports during the second year with stable cash flows under medium-term contracts.

04. Social Impact: Guarantee fair trade and certify 100% of the supply chain under Rainforest Alliance and UTZ standards in the short term.

SECTION II — Selected Product

SINGLE-ORIGIN SPECIALTY COFFEE

Agroindustry · Premium Quality · Colombia

Justification

Colombian specialty coffee shows 12.4% annual growth in the U.S. premium segment. Texas, the third-largest consuming state, has low market saturation in the single-origin niche. The ColombiaUSA FTA guarantees a 0% tariff, reducing market entry costs. Colombia produces 90% of the world's premium soft-washed Arabica at altitudes of 1,600–2,200 m.a.s.l., imparting bright acidity and floral notes that command premium pricing.

Field Description

Product

Green/roasted specialty coffee, Castillo and Caturra

Origin Nariño, Cauca, and Coffee Belt Colombia

Classification

Process

Specialty Coffee (SCA >= 85/100)

Washed, Natural, and Honey depending on origin

Altitude 1,600 – 2,200 m.a.s.l.

Presentation

Tariff Position

FOB Price

Incoterm

Certifications

Moisture

Shelf Life

Regulation

60 kg jute sacks / 1 kg valve bags

0901.11.00 / 0901.21.00 0% FTA

USD 5.80 – 8.50 / kg depending on quality

FOB Buenaventura / CIF Houston, TX

Rainforest Alliance, UTZ, USDA Organic, FLO

10.5 – 12.5% (ASTM E1253)

12 months green / 6 months roasted

FDA 21 CFR, FSMA, ICA Colombia

Volume 10 t/month pilot → scalable to 50 t/month

$7.2B

U.S. Coffee Market 2024

12.4%

Premium Segment Growth 3rd Place Texas National Ranking 0% FTA Colombia-USA Tariff

SECTION III — International Negotiation Proposal

Lead Negotiator

Andrés Torres Medina Director of International Expansion, Nexus Trade

Andrés Torres was selected for his extensive experience in B2B negotiations with North American importers, command of business English, and deep knowledge of the Colombian coffee value chain. His training in Harvard's principled negotiation methodology (BATNA/ZOPA) ensures a collaborative approach without compromising Nexus Trade's interests. He has participated in trade missions in Austin, Dallas, and Houston.

Negotiation Strategies

Integrative Strategy (Win-Win): Joint value creation by identifying shared interests. Nexus Trade will offer regional exclusivity in exchange for guaranteed minimum volumes, building a mutually beneficial long-term relationship.

Anchoring on Differential Value: Negotiation anchored on unique attributes: SCA score, certifications, and origin story. Positions the offering in the premium segment, away from commodity price wars.

Progressive Trust Building: Low-risk pilot contract (10 t/month, 3 months) to demonstrate logistical reliability before scaling to the full contract. Includes a farm visit to Colombia for the counterpart.

BATNA Defined and Protected: Alternative offer in California as BATNA. Minimum CIF Houston price: USD 6.20/kg for washed coffee. Prevents excessive concessions under pressure during formal negotiations.

Negotiation Phases

Strategic Preparation: Market analysis (Texas coffee trends, FDA/USDA regulations, FTA conditions). Profiling of Lone Star Coffee Distributors. Definition of BATNA, ZOPA, and concession range. Preparation of bilingual materials, physical samples, and certifications.

2

Weeks 3–4

3

Weeks 5–7

4

Weeks 8–9

5 Weeks 10–12

First Contact & Outreach: Contact via the Ministry of Commerce commercial attache in Houston. First virtual institutional presentation. Delivery of samples (3 origins) and technical catalog with sensory profiles. Exploration of interests without revealing limit positions. Agreement on negotiation calendar.

Formal Negotiation Sessions: In-person meeting in Houston. Formal presentation: prices, volumes, Incoterms, payment terms, and exclusivity. Documented counteroffer round. Negotiation of clauses: quality guarantees, penalties, and dispute resolution. Cupping session with a certified Q-Grader from both parties.

Closing & Formalization: Legal review by international trade attorneys. Pilot contract 3 months (10 t/month) + renewal option for annual contract (30–50 t/month). Signing of supply agreement, confidentiality agreement, and technical annex. Opening of a documentary letter of credit (L/C) or agreed payment terms.

Execution & Follow-Up: First shipment from Buenaventura to Houston with real-time logistics monitoring. Follow-up meeting 30 days after first shipment. KPI evaluation: quality on arrival, schedule compliance, customer satisfaction. Invitation to counterpart for a visit to producing farms in Colombia.

SECTION IV — Intercultural Aspects & Protocol

Negotiation Culture — Colombia

• High emphasis on personal relationships before business

• Expressive and contextual communication (high-context culture)

• Marked hierarchy; decisions made by senior executives

• Flexible concept of time; meetings may run long

• Business lunch as a key trust-building setting

• "No" is expressed indirectly to preserve harmony

• Emphasis on honor, reciprocity, and verbal commitment

Negotiation Culture — Texas, USA

• Direct orientation toward business and measurable results

• Direct and explicit communication (lowcontext culture)

• High value placed on punctuality; delays generate distrust

• Texas has a warmer, more informal style than the northeast

• Firm handshake and direct eye contact are expected

• Written contracts and commitments carry absolute weight

• Texan pride: highlighting benefits for Texas builds rapport

Negotiation Protocol — Colombia to Texas

Etiquette & Presentation Communication & Meetings Intercultural Courtesy

• Dark formal suit for meetings

• Bilingual business cards (ES/EN)

• Materials in English and Spanish

• Exact punctuality (max 5 min late)

• Firm handshake, direct eye contact

• Introduce yourself with position, company, and background

• Open with small talk (weather, sports)

• Send agenda 3 days in advance

• Brief, data-driven presentations

• Be explicit and direct

• Meeting minutes within 24 hours

• Use technology and visual demos

• Never pressure to close the same day

• Respect "I will get back to you"

• Invite to a business dinner or lunch

• Avoid political or religious topics

• Acknowledge local Texan pride

• Frame pitch around benefits for Texas

SECTION V — Negotiation Tactics

The following tactics have been designed for the Colombia-Texas negotiation context, considering the B2B dynamics of the specialty coffee sector, the business culture of the counterpart, and Nexus Trade's strategic objectives.

Value Anchor Offensive

Free Tasting

Collaborative

Pilot Contract

Collaborative

Conditional Exclusivity Offensive

Present the highest price first, justified by premium attributes (SCA, certifications, traceability). Initial CIF Houston price: USD 9.50/kg.

Offer 50 kg sample from three origins at no cost with a cupping session. Reduces perceived risk and builds emotional connection with the origin.

Initial 90-day contract, 10 t/month, no exit penalties. Demonstrates fulfillment capacity and builds mutual trust.

Exclusivity in Texas in exchange for minimum volumes (30 t/month), fixed price for 12 months, and 30% advance payments. Closing lever.

2 First Contact

Phase 3 Negotiation

Phase 3 Closing

Strategic Silence Defensive

Graduated Concessions Defensive

Origin Diplomacy Collaborative

When facing a counteroffer below BATNA, a deliberate 30–60 second pause. Silence in Texas signals serious reflection. Avoids rushed concessions.

Ordered menu: first adjust payment terms (30 to 45 days), then price reduction (–3%), finally an additional certification.

Invite Lone Star to visit farms in Colombia. Contact with coffee growers creates a unique emotional connection versus competitors.

Phase 3 Price

Seasonal Urgency Offensive

The Nariño harvest (Oct–Dec) has limited certified coffee quotas with scores >= 87 SCA. Other distributors have already expressed interest.

Phase 3 Counterproposal

Phase 4 Post-closing

Phase 3 Decision

"The goal of every international negotiation is not to win over the other party, but to build an agreement so solid that both sides want to renew it. Colombian coffee does not need to sell itself: it needs to be known."

Phase 3 1st session
Phase
Nexus Trade S.A.S. · Bogotá, Colombia · 2025

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