Category: featured

Coffee Company Owned by Detroit Equity Firm Makes New Acquisition

Detroit- and Toronto-based equity firm Huron Capital Partners announced Feb. 11 that its portfolio company Ronnoco Coffee has acquired the Des Moines, IA, coffee producer U.S. Roasterie.

“Over the past 20 years, U.S. Roasterie has partnered with hundreds of customers in developing and supporting their private label brands,” Scott Meader, Ronnoco’s chief executive officer, said in a news release. “The addition of this facility and management team gives Ronnoco another platform through which to pursue alternate channel growth in a large and growing segment of the coffee industry.”

Coffee is the second most sold commodity in the world, following only oil. That makes it a $20 billion industry globally. While coffee is typically grown in less developed countries, for reasons both of climate and agricultural cost, it is often roasted closer to the distribution point, in order to maximize flavor.

U.S. Roasterie is a private label roaster with approximately 60 employees. Ronnoco purchased it from Howard Fischer, but the terms of the deal have not been made public.

Ronnoco, which is itself jointly owned by Huron and Ronnoco management, has made four other acquisitions in the past two years as part of a buy-and-build business plan. By acquiring International Blends, Henderson Coffee, the coffee and tea aspect of Love Bottling Company and Biff’s Coffee, the company has expanded into Arkansas, Iowa, Kansas, Missouri and Oklahoma, with its products being sold in restaurants, convenience stores, offices and casinos.

Since Huron’s initial investment in 2012, Ronnoco’s revenue has increased by over 40%.

Meader promised to “leverage the capabilities, systems and outstanding customer service of Ronnoco” to make the latest deal a profitable one, with Huron Senior Partner John Higgins commenting that “We are thrilled to see Ronnoco continue to expand and execute on the buy-and-build strategy we envisioned, and we’re confident in the management team’s ability to use this as a runway to drive continued growth of the business.”

February 24, 2015

Gov. Snyder Plans To Expand Michigan’s Healthy Kids Dental Program To Cover an Additional 275,000 Kids


Gov. Rick Snyder’s $54 billion 2016 budget for Michigan wasn’t an easy one to create, especially after it became clear that the state would have to cut funding in multiple areas due to a predicted $532 million in lost revenue. There’s one issue that Snyder isn’t giving up on, however: dental care for low-income families, especially kids. According to the Detroit News, Snyder wants to expand the state’s taxpayer-funded dental program by allowing an additional 875,000 individuals from low-income families to be eligible for financial assistance that the program provides. Snyder reportedly wants to add spaces for up to 613,000 low-income adults in the program by increasing the number of dentists that accept Medicaid insurance plans. He also wants to expand the Healthy Kids Dental Program, which currently provides dental care for more than 544,000 children across 80 counties in Michigan. This new expansion would provide dental care to an estimated 275,000 children who come from low-income households in Wayne, Oakland, and Kent counties. The Healthy Kids Dental Program, which began 15 years ago under former Gov. John Engler, has provided valuable dental care for thousands of children whose parents would otherwise be unable to pay for regular dental checkups. The Detroit News explains that children are automatically enrolled in the program if they’re under eight years of age and live in households that have an income 150% below the poverty level. The expansion would cost an estimated $21.8 million for Michigan taxpayers and would certainly put an extra strain on the state’s already-tight budget, but it would provide invaluable healthcare advantages for children in Wayne, Oakland, and Kent counties. As MLive explains, these three counties are the only ones that aren’t covered in the Healthy Kids Dental Program, despite being the most populous counties in the state. As the Michigan League for Public Policy has noted, this program expansion plan is “long overdue,” especially considering that dental health is much more affordable for households of any income level when it is preventative, rather than reactive. The cost to maintain one missing front tooth, for example, can range anywhere from $5,000 to $10,000 over a lifetime — but with regular dental cleanings, kids can learn better dental hygiene practices to prevent tooth decay and dentists can catch cavities early with regular screenings. While the program expansion will take a while to implement — in regards to the funding alone — it’s clear that Gov. Snyder has no intention of letting this major healthcare problem continue.

Gov. Rick Snyder’s $54 billion 2016 budget for Michigan wasn’t an easy one to create, especially after it became clear that the state would have to cut funding in multiple areas due to a predicted $532 million in lost revenue. There’s one issue that Snyder isn’t giving up on, however: dental care for low-income families, especially kids.

According to the Detroit News, Snyder wants to expand the state’s taxpayer-funded dental program by allowing an additional 875,000 individuals from low-income families to be eligible for financial assistance that the program provides.

Snyder reportedly wants to add spaces for up to 613,000 low-income adults in the program by increasing the number of dentists that accept Medicaid insurance plans.

He also wants to expand the Healthy Kids Dental Program, which currently provides dental care for more than 544,000 children across 80 counties in Michigan. This new expansion would provide dental care to an estimated 275,000 children who come from low-income households in Wayne, Oakland, and Kent counties.

The Healthy Kids Dental Program, which began 15 years ago under former Gov. John Engler, has provided valuable dental care for thousands of children whose parents would otherwise be unable to pay for regular dental checkups. The Detroit News explains that children are automatically enrolled in the program if they’re under eight years of age and live in households that have an income 150% below the poverty level.

The expansion would cost an estimated $21.8 million for Michigan taxpayers and would certainly put an extra strain on the state’s already-tight budget, but it would provide invaluable healthcare advantages for children in Wayne, Oakland, and Kent counties. As MLive explains, these three counties are the only ones that aren’t covered in the Healthy Kids Dental Program, despite being the most populous counties in the state.

As the Michigan League for Public Policy has noted, this program expansion plan is “long overdue,” especially considering that dental health is much more affordable for households of any income level when it is preventative, rather than reactive. The cost to maintain one missing front tooth, for example, can range anywhere from $5,000 to $10,000 over a lifetime — but with regular dental cleanings, kids can learn better dental hygiene practices to prevent tooth decay and dentists can catch cavities early with regular screenings.

While the program expansion will take a while to implement — in regards to the funding alone — it’s clear that Gov. Snyder has no intention of letting this major healthcare problem continue.

February 18, 2015

Detroit Drivers Pay Nearly 800% More for Car Insurance Than Drivers in Cheapest Areas, According to New Study

A new study commissioned by CarInsurance.com suggests that of all the factors that go into determining car insurance rates, just five digits — your ZIP code — can have a surprisingly large impact.

In order to control for considerations such as gender, age, car model, driving record and financial history, the California-based website compared rates from six major Medicare agents near me providers for a hypothetical 40-year-old man driving his 2014 Honda Accord 12 miles each day (with a clean driving history and good credit).

The Motor City turned out to be the most expensive place for this driver to get coverage, with Detroit’s 48227 zone averaging an annual premium of $5,109. If that driver lived just over 100 miles south, however, he’d be living in the cheapest ZIP code in the country; in Green Springs, OH, the same coverage would cost only $647 on average. The national average came in at $1,231, and cities such as Palo Alto, CA, and Denver, CO, were closest to that figure.

Why does ZIP code factor so heavily into insurance rates? “Based on the number and severity of car insurance claims within the area, insurers assign ZIP codes different risk levels,” Michelle Megna, managing editor of CarInsurance.com, wrote in an explanation of the study’s findings. “Insurers take into account the frequency of thefts, collisions and vandalism to gauge the likelihood of such incidents happening to drivers within the ZIP code.”

The most expensive areas after Detroit were 11226 in Brooklyn, NY ($3,877 annually); 19132 in Philadelphia ($2,760); 02903 in Providence, RI ($2,760); and 70117 in New Orleans ($2,542).

The top five discount ZIP codes were rounded out by 28704 in Arden, NC ($671); 04072 in Saco, ME ($709); 24073 in Christiansburg, VA ($751); and 83706 in Boise, ID ($753).

It’s unlikely that drivers will move across the country to take advantage of some of these ultra-low rates. But it’s good for them to know that moving even a few miles can raise or lower premiums.

February 13, 2015
Detroit Offers Homeowners Zero Percent Interest Loans to Help Repair Homes

In an effort to put Detroit back on the right track, Mayor Mike Duggan announced in his State of the City address that interest-free home loans would be made available for residents looking to repair their properties.

“You only pay back what you borrow,” said the mayor’s chief of staff Alexis Wiley. “There are neighborhoods where your income doesn’t matter and they will be able to apply for those loans.”

Homeowners who qualify will be able to borrow anywhere from $5,000 to as much as $25,000 to repair and improve their homes, which should be more than enough to fix things up considering the fact that, according to research from Scarborough, more than half (56%) of Americans who made home improvements in the past 12 months invested $1,000 or more doing so. Best of all, borrowers have 10 years to pay the exact amount — and only the exact amount — back.

In order to qualify for the zero interest loans, homeowners must have lived in their homes at least six months prior to applying, have a credit score of at least 560, and be current in their taxes, home insurance, and a few other guidelines. According to Wiley, the city is also willing to work with homeowners to help them meet these qualifications.

According to the program’s website, health and safety hazards must be addressed first before other repairs can be made. Some of the repairs that qualify for the program include electrical work, furnace replacement, roof replacement, plumbing, door and window replacements, porches, and structural support.

“We wanted to develop a program that would help people who are in their homes but need to fix it up,” said Mayor Duggan. “Maybe they need a new furnace, maybe they need a new roof, maybe they needed new plumbing. Yesterday, with the agreement of HUD and a group of foundations, we have a new eight-million dollar loan pool that will be available at zero percent interest.”

The loans will be available to homeowners in early March.

February 13, 2015

Can Boomerangs Turn Detroit into the Next Great Tech Hub?


According to a recent article on the tech site Re/code, Detroit’s burgeoning reputation as a hub for technological start-ups has one phenomenon to thank: boomeranging. Though the term “boomerang” has mostly been associated with employment-challenged millennials moving back in with their parents, the boomerangs of Detroit are mostly young people who were inspired to return out of a sense of loyalty for the city where they grew up. The city of Detroit currently holds less than half the population it did only 65 years ago, leaving the area at risk to fall into urban blight. For many young people with family in the area, the crisis signified a chance to move back and make a difference. Boomerangs that move back to the area are moving back to build businesses, attract investors and rejuvenate the city where they grew up. Many of the young innovators are moving to neighborhoods like Midtown and Downtown. A new incubator space in Midtown called TechTown has sprung up to accommodate them, and they’ll soon be able to move between the neighborhoods using the M1 light rail project, which was paid for mostly using private funds. A small group of recent college grads have also made Detroit their home as part of the Venture for America program, which is essentially the tech equivalent of Teach for America. The students purchased an $8,000 house and are creating their own start-ups on the run-down property. Some boomerangs who’ve made their fortunes with tech start-ups elsewhere are buying up and renovating older buildings to rent out to other businesses and start-ups. Others have moved their business operations there to support the community. “Anything you’re doing here makes a statement,” Ben Bator, founder of the profitable humor website Texts From Last Night, told Re/Code. “The conscious decision to move to Detroit and to make it your home says something.” The cost also has an appeal. There’s plenty of available space in Detroit and it comes at a fairly cheap price. The downside is that much of the older architecture requires expensive renovations. Though the strides that have already been made are promising, several Detroit natives are choosing to wait a little longer before moving back. Many believe that the city’s comeback needs to be a bit more evident before they return. Some just aren’t convinced that tech has the staying power to revitalize a city, even though a tech solution like content marketing generates three times the leads as traditional marketing and costs 62% less. But for the boomerangs who are investing in the city, seeing their hometown restored to its former glory is worth the risk.

designer drawing website development wireframe

According to a recent article on the tech site Re/code, Detroit’s burgeoning reputation as a hub for technological start-ups has one phenomenon to thank: boomeranging.

Though the term “boomerang” has mostly been associated with employment-challenged millennials moving back in with their parents, the boomerangs of Detroit are mostly young people who were inspired to return out of a sense of loyalty for the city where they grew up.

The city of Detroit currently holds less than half the population it did only 65 years ago, leaving the area at risk to fall into urban blight. For many young people with family in the area, the crisis signified a chance to move back and make a difference.

Boomerangs that move back to the area are moving back to build businesses, attract investors and rejuvenate the city where they grew up. Many of the young innovators are moving to neighborhoods like Midtown and Downtown.

A new incubator space in Midtown called TechTown has sprung up to accommodate them, and they’ll soon be able to move between the neighborhoods using the M1 light rail project, which was paid for mostly using private funds.

A small group of recent college grads have also made Detroit their home as part of the Venture for America program, which is essentially the tech equivalent of Teach for America. The students purchased an $8,000 house and are creating their own start-ups on the run-down property.

Some boomerangs who’ve made their fortunes with tech start-ups elsewhere are buying up and renovating older buildings to rent out to other businesses and start-ups. Others have moved their business operations there to support the community.

“Anything you’re doing here makes a statement,” Ben Bator, founder of the profitable humor website Texts From Last Night, told Re/Code. “The conscious decision to move to Detroit and to make it your home says something.”

The cost also has an appeal. There’s plenty of available space in Detroit and it comes at a fairly cheap price. The downside is that much of the older architecture requires expensive renovations.

Though the strides that have already been made are promising, several Detroit natives are choosing to wait a little longer before moving back. Many believe that the city’s comeback needs to be a bit more evident before they return.

Some just aren’t convinced that tech has the staying power to revitalize a city, even though a tech solution like content marketing generates three times the leads as traditional marketing and costs 62% less. But for the boomerangs who are investing in the city, seeing their hometown restored to its former glory is worth the risk.

February 13, 2015

Category: featured

Coffee Company Owned by Detroit Equity Firm Makes New Acquisition

Gov. Snyder Plans To Expand Michigan’s Healthy Kids Dental Program To Cover an Additional 275,000 Kids

Detroit Drivers Pay Nearly 800% More for Car Insurance Than Drivers in Cheapest Areas, According to New Study

Detroit Offers Homeowners Zero Percent Interest Loans to Help Repair Homes

Can Boomerangs Turn Detroit into the Next Great Tech Hub?