RSF Provides $3 Million Line of Credit to Numi Organic Tea

RSF Provides $3 Million Line of Credit to Numi Organic Tea
Fast growing organic tea company chooses a social finance organization as its lender

SAN FRANCISCO, CA - RSF, a social finance organization, provided a $3 million line of credit to Numi, LLC, a specialty organic tea company committed to fair trade, social justice, and environmental sustainability.

“In searching for the best financial partner, Numi chose RSF for many reasons. First, RSF shares a similar vision to support and sustain the global environment and its people through various measures including organic farming, fair trade practices and an overall philosophy of sustainability,” says Ahmed Rahim, co-founder and president of Numi. “This is rare to find in the financial marketplace, but RSF is a unique organization that strives to be a leader and set an example of how financial partnerships can be founded.”

The loan will help Numi meet the working capital requirements typical of a successful, fast growing company, and position Numi for continued long-term growth. Founded in 1999 by brother-and-sister team, Ahmed and Reem Rahim, Numi introduces to the U.S. beverage market distinct all-natural organic tea blends of full leaf quality teas, fresh herbs and real fruits that resulted in significant growth six years later with twenty-five employees, $7 million in sales.

“With Numi’s continued rapid growth, RSF was able to provide our company a strong package that not only allows for short-term capital growth, but also for long-term strategies that strengthen our company’s internal systems so as to be best prepared to face all of the major opportunities during this accelerated period,” Mr. Rahim adds. “RSF is an organization that can think outside of the box and worked with Numi to create a strong partnership that will help our company reach the top of the market.”

Numi works directly with many of their tea suppliers using fair trade practices ensuring fair treatment of the workers, better working and living conditions, and an overall improved quality of life for their families. Eleven of Numi’s teas are Fair Trade Certified by Transfair USA. They are committed as well to improving the lives of those who supply their packaging materials. Last year when parts of Guangxi Province, in the southern region of China where Numi obtains bamboo and wood for its tea chests, was struck with the worst flooding in 100 years, the company donated a percentage of its profits to help rebuild the bamboo factory, which is a primary economic driver for the surrounding community. Ongoing proceeds will help maintain the facility and ensure fair wages for the workers.

Numi also demonstrates its commitment to corporate social responsibility through its collaboration with Community Gatepath, a non-profit organization that offers employment opportunities to disabled adults and through its outstanding efforts to reduce waste by using biodegradable and recyclable materials in its packaging for which Numi won an award in 2005.

“It is an honor to be of service to such a socially conscious organization. Numi exemplifies how social responsibility can be purposely and successfully integrated into the core of a company’s business model—proving that doing well while doing good is not just a cliché,” says RSF Lending Manager Joe Avenatti.

RSF, a pioneer in social finance, is a group of non-profit organizations that provide innovative financial vehicles for investors, philanthropists, and borrowers to create a better future. The organization employs the following strategies: attracting and developing a community of philanthropists and socially-minded investors; putting donor and investor intentions to work through grants, loans, and investments in organizations that create environmental, social, and economic sustainability; and developing the capacity of individuals and organizations to explore the social implications of financial practices.

Photo: © Fairtrade Foundation

Thursday, September 14th, 2006