Horai & Co., LLC

Premium Matcha from Japan's Uji & Kyoto Regions

Bringing authentic ceremonial-grade matcha to Texas's underserved wholesale market through direct relationships with traditional Japanese tea masters

$205K Year 1 Revenue Target
35-40% Gross Margins
$8K Startup Capital
3 Months Break-Even

The Market Opportunity

The US matcha market is growing at 7-8% annually, reaching $1.2B in 2024. Texas represents a massive underserved opportunity with only 4 dedicated wholesalers and zero presence in Austin or San Antonio.

$1.2B US Market Size (2024)
58% Sold Through Cafes
90%+ Cafe Profit Margin
Only 4 Texas Wholesalers

Why Cafes Love Matcha

A single matcha latte costs cafes $0.25-$0.50 in powder but sells for $6.97 on average—a 90-96% profit margin. A cafe selling just 50 lattes per day generates $127,200 in annual revenue with only $2,610-$7,363 in powder costs. It's their highest-margin beverage.

Geographic Gaps

Austin: Zero dedicated matcha wholesalers despite strong cafe culture

San Antonio: Completely unserved market with 1.4M population

Houston & Dallas: Only 2 competitors each, room for premium positioning

Market Trends

Ceremonial grade growing fastest at 8.12% CAGR

62% of consumers prefer organic options

Online foodservice wholesale growing at 7.56% annually

Most competitors hide pricing behind quotes—transparency wins

Business Model & Strategy

We're launching with a legally compliant, low-risk distributor model that requires minimal capital and achieves profitability in 90 days, then scaling to private label as we grow.

Phase 1: Distributor

Months 1-3 | $6.5K-8K Capital

Import pre-packaged matcha from Japanese suppliers, add our branded labels, and distribute to Texas cafes and tea shops. No FDA facility registration required—we're a distributor, not a manufacturer.

  • Fastest path to market (30 days)
  • Minimal regulatory complexity
  • 40-50% gross margins
  • Store at home with chest freezer

Phase 2: Private Label

Months 4-6 | Scale with Profits

Partner with licensed co-packers or Japanese suppliers like Tsuji Riichi (100-unit minimum) to create custom Horai-branded packaging. Higher margins and stronger brand presence.

  • Custom branding and packaging
  • 50-60% gross margins
  • All compliance handled by co-packer
  • Professional presentation

Phase 3: Scale

Months 7-12 | Multi-City Expansion

Expand beyond Georgetown to Austin, San Antonio, Houston, and Dallas. Target H-E-B's Quest for Texas Best competition (March 2026) for up to $50K in prizes plus guaranteed shelf placement.

  • 50+ wholesale accounts
  • Retail channel development
  • Consider expanding to other Japanese products

Product Line Strategy

Launch with 3 SKUs targeting different customer segments:

Ceremonial Grade: Specialty cafes, tea shops | Traditional ceremony, premium lattes | Import: $60-90/kg → Wholesale: $110-140/kg

Cafe/Latte Grade: High-volume cafes | Daily lattes, smoothies | Import: $40-60/kg → Wholesale: $70-100/kg

Culinary Grade: Bakeries, food service | Baking, cooking | Import: $18-25/kg → Wholesale: $35-45/kg

Competitive Advantages

We're not just importing matcha—we're building authentic relationships with Japanese tea masters and bringing cultural authenticity to a market dominated by generic wholesalers.

🎌 Authentic Uji/Kyoto Sourcing

Direct relationships with traditional producers like Tsuji Riichi Honten, Marukyu Koyamaen, and Yamamasa Koyamaen. We're visiting Japan to establish personal connections following proper omiyage protocols with Texas specialties as gifts. This isn't reselling—it's genuine cultural partnership.

🏆 Texas-Local Advantage

We're based in Georgetown, Texas—the only matcha wholesaler between Houston and Dallas. Faster delivery times than California or New York competitors, personal service, and local market knowledge. Plus, "Texas-made" positioning for H-E-B's Quest for Texas Best.

💎 Transparent Pricing

While competitors hide pricing behind quote requests, we'll publish our wholesale rates publicly. Transparency builds trust and makes it easier for cafes to make buying decisions. No games, no surprises—just fair pricing.

📦 Flexible MOQs

Starting with 5kg minimums and moving to zero minimums as we scale. Most competitors require 10-20kg minimum orders or charge premium prices for small quantities. We make it easy for new cafes to start with us.

🎓 Education & Support

Free samples, brewing guides, staff training materials, and recipe development assistance. We don't just sell matcha—we help cafes succeed with it. Customer success is our growth strategy.

🚀 Innovative Packaging

Exploring unique packaging like natural bamboo shoot containers for ultra-premium limited editions—completely unique in the market. Local production with ePac Flexibles Austin supports faster turnaround and "Texas pride" brand story.

Financial Projections

Conservative projections show profitability in Month 3 and strong revenue growth through wholesale expansion. Two-partner bootstrap operation with minimal overhead.

Year 1 Trajectory (Conservative)

Quarter Accounts Sales (kg/mo) Monthly Revenue Quarterly Revenue
Q1 5 15-80kg $1,200-$6,400 $6,500
Q2 15 110kg $8,800 $23,400
Q3 30 140-170kg $11,200-$13,600 $58,500
Q4 50 180kg $14,400+ $117,000

Startup Costs Breakdown

Item Cost
Initial inventory (80kg, pre-packaged) $4,000-$5,000
Chest freezer for storage $400-$600
Branded labels/stickers $200-$400
LLC, permits, insurance $700-$1,000
Sample inventory & materials $500-$600
Working capital buffer $500-$1,000
TOTAL $6,400-$8,800

Key Metrics

40-50% Gross Margin (Phase 1)
50-60% Gross Margin (Phase 2)
Month 3 Break-Even Point
Month 5 Payback Period

Month 6 Take-Home:

$2,550 per partner

Scaling to $5,000+ per partner by Month 12

12-Month Roadmap

Proven, executable plan with clear milestones and legal compliance at every stage.

Q1

Foundation & Launch (Months 1-3)

  • Form LLC, obtain permits, secure insurance
  • Import first 80kg inventory in pre-packaged form
  • Apply branded labels and set up home storage
  • Target 5-10 Georgetown cafes with in-person visits and samples
  • Goal: 3-5 initial accounts, break-even by Month 3
Q2

Austin Expansion (Months 4-6)

  • Expand to 20-30 Austin cafes and restaurants
  • Begin private label development with co-packer or Japanese supplier
  • Collect testimonials and case studies
  • Goal: 10-15 Austin accounts, transition to Phase 2 branding
Q3

Multi-City Growth (Months 7-9)

  • Launch in San Antonio (zero competition)
  • Begin outreach to Houston and Dallas markets
  • Visit Japan to meet suppliers and strengthen relationships
  • Apply for food safety certification (FSSC 22000)
  • Goal: 30 total accounts across 4+ cities
Q4

Scale & Retail Entry (Months 10-12)

  • Reach 50 wholesale accounts statewide
  • Prepare application for H-E-B Quest for Texas Best (opens March 2026)
  • Explore retail partnerships with Central Market, Whole Foods
  • Consider expansion into other Japanese products (hojicha, genmaicha)
  • Goal: $15,000+ monthly revenue, strong foundation for Year 2 growth

Why We'll Win

This isn't our first rodeo. We bring complementary skills, existing business operations, and strategic connections that position us for rapid execution.

🎯 Strategic Positioning

  • Georgetown location between Austin and Dallas—perfect logistics hub
  • Existing business operations (Don Digital Enterprises) provide infrastructure
  • Professional web development capabilities for B2B and manufacturer relationships
  • Gaming/lifestyle brand connections (GamerSupps) for future collaborations
  • Clothing manufacturing contacts for potential co-branded products

🚀 Execution Advantages

  • Comprehensive competitive intelligence already completed
  • Deep understanding of Texas market gaps and opportunities
  • Supplier contact templates ready to deploy
  • Bootstrap-friendly business model with fast payback
  • Clear compliance strategy with legal counsel reviewed
  • Two-partner structure allows specialization: sales vs. operations

🌱 Our Philosophy: Lean Startup Meets Cultural Authenticity

We're not building a get-rich-quick scheme. We're creating a sustainable business that honors Japanese tea traditions while serving the Texas market's needs. We start lean, validate with customers, iterate based on feedback, and scale profitably. Every decision prioritizes customer success, cultural respect, and financial discipline.

Join Us in Building Texas's Leading Matcha Wholesaler

Low risk. High margins. Massive underserved market. Proven path to profitability.

Let's Talk

Seeking strategic partners and advisors who share our vision for cultural authenticity and sustainable growth.