By David Rogers. December 28, 2011. BOONE -- After 11 years helping High Country residents, business folks, and area visitors wake up in the morning (and stay awake in the afternoon), Conrad and Jody Poe are closing the Conrad's Coffee Company retail location in the Shadowline shopping center. But unlike so many enterprises going out of business these days, the Poes' business is morphing into something bigger and better. Photos by David Rogers

"We have an opportunity to expand our wholesale presence and reach in the High Country," explained Conrad to Blowing Rock News on Wednesday. "This step is strategic in that we can focus our time, energy, and capital resources more effectively.  We will be opening a new large-scale roasting facility in Boone, to support the growing number of retail outlets we serve."

The Shadowline shop will close on Saturday, and the expanded wholesale business is due to launch by the middle of next week. "From a wholesale standpoint," observed Conrad, "we won't skip a beat."

While losing the Shadowline location, High Country coffee aficionados will still be able to get their daily "fix" of Conrad's Coffee at a growing number of retail outlets, including the retail shop at Highland Commons Shopping Center (on Hwy. 105) bearing the flagship's name.  The Poes sold that store in 2009 to its current owner, Wes Berry.  Mountain Bagels in the Boone Heights Shopping Center is also a de facto Conrad's Coffee outlet.  Conrad's helped outfit and still supplies Mountain Bagels, and Jody is frequently in the shop to train new baristas.

Appalachian State University will recognize the brand, as Conrad's Coffee has a major presence in the Central Dining Hall at Appalachian State University.  Other wholesale customers include Miracle Grounds in Crossnore, and each of the Lowe's Foods locations in Boone, Banner Elk and West Jefferson.

"Our wholesale coffee business has grown to represent roughly 70% of our annual sales," Conrad confided to Blowing Rock News, "but a higher percentage of our profits. So this just makes sense for us to get out of the retail business and focus on how we can provide even greater value to our retailing customers, to help them succeed."

"In our new facility," Jody added, "we will have the large roaster that we currently operate out of our Shadowline store, and we will also install a second roaster to keep up with increased demand for our product.  When we get finished, our wholesale roasting capacity will have increased by 50%."

"That added capacity is important," Conrad chimed in. "We are aggressively adding new retailing customers.  For instance, Fred and Larry's Coffee in Banner Elk will be using our products, and this week we are helping to open a new shop, Highland Coffeehouse on Main Street in Lenoir.  We will help the owners install all of their new equipment and provide a great deal of training."

For the Poes, the people working behind the retail counter are as important as the coffee products they are selling.  Named "Best Coffee House" three consecutive years in the Watauga Democrat's "Best of the Best" recognition and awards program, Conrad's has been known for its friendly, personal service as well as for its products.

"Jody spends a lot of her time training baristas," Conrad noted to Blowing Rock News. "That's an important commitment, because when the retail shop is selling your product, they are representing your product.  Each cup of coffee, espresso or latte served by our retail partners has a long-term impact on our future results. Whether being served in a  retail shop or selling whole beans at Lowe's Foods, every individual sale represents our company."

At its peak, before the economic downturn, Conrad's was helping open as many as 12 coffee houses per year and supplying them with product.  "We had demand for our coffee from as far away as Wilmington, NC," smiled Conrad. "And through Samaritan's Purse we outfitted a shop in Russia.  My son, Joshua, even travelled to Hooper Bay, Alaska, to outfit a youth community center and train its baristas."

An important addition to the new wholesaling facility at a yet to be disclosed location will be what Jody Poe describes as a virtual coffee house.  "We can bring people in to train them as baristas, or discuss with shop owners the various service and business dynamics of operating their stores."

One of the more important training projects for the Poes has been their support of Miracle Grounds in Crossnore. "It is a way for some of the students at Crossnore School to acquire some real world skills.  Many of the students come from families in crisis situations, so they have experienced troubled childhoods.  Crossnore helps the students find a balance in their lives.  Needless to say, we are advocates for the work of Crossnore School and enthusiastically support the on-the-job training and positive experiences the students get while working at Miracle Grounds."

"There are so many stories and so many people," Conrad said, reflecting back over 11 years since first opening the Shadowline shop in 2000. "My sons both met their wives while working in our coffee business. There are customer show have come into the shop every single day since we opened.  That's going to be the hardest thing about not being a part of the retail shop every day. We will miss seeing and talking to the people every day.  Our customers are our friends."

Conrad's was launched in 2000 because friends kept requesting "Conrad's Coffee."  Conrad frequently travelled abroad while working in a personal security role for business executives. As souvenirs, he often brought home coffee from the countries he visited.  "One day I had an epiphany moment," Conrad said.  "I realized that not only could we fill a niche in Boone, but we could also make a real difference in the lives of coffee farmers in developing nations by buying raw beans directly from them."

Editor's note: While understanding the immense business opportunity for the Poes, losing Conrad's Shadowline location is bittersweet.  Part of a book (The 90% Solution: Higher Returns, Less Risk, 2006, Wiley & Co., New York) was written in the back corner of the coffee shop, on my laptop.  Jody once (playfully) threatened to charge me rent or receive a royalty.   In addition, much of the conceptual outline for what would become the business model for Blowing Rock News was sketched out over a cup (or two or three) of Conrad's coffee (regular, a medium).  And then, of course, there is the Poes' sharing stories of their visit to my favorite ice cream shop in the whole world, Dewar's, in Bakersfield, California, but that is another story...

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