Contracts are powerful tools for smart purchasing, however, they come with obligations and responsibilities.
What are SAS Contracts?
SAS contracts are a tool for roasters to hold coffees they would like preferred access to, or to hold a price at a time when a desired coffee is unavailable. SAS stands for subject to approval of sample. That means the contract is going to go one way if the sample is approved and it's going to go one way if the sample is rejected.
SAS contracts enable the buyer to hold a coffee while waiting for a sample. What often happens is that a coffee will sell out in the period of sampling prior to finalizing a purchase, so this helps roasters by giving them access to coffees while still allowing them to sample the coffee beforehand.
SAS contracts are a mechanism for buyers to buy smarter and better. As with any contract, they have obligations and rights and responsibilities. There are two types of SAS contracts:
- The first type is called NANS, or SAS NANS
- The second is called SAS Replace
NANS stands for No Approval No Sale, and this is going to be firmly fixed in the sampling terms on any given coffee contract.
This essentially gives the buyer the option to reject a coffee with zero obligation if it does not hold essentially the character and quality as expressed by your trader.
For example, say there is a coffee with only a few bags left on the website that you would like to purchase, however, you want to taste it first. You would give your trader a call and request a SAS NANS contract on that coffee, so that the coffee is held/ won't be sold to anybody else. You would then receive a sample of that coffee and will have three business days to approve or reject it. If approved, the coffee is yours and the contract is executed. If rejected, the coffee is put back into the pol for sale and the contract is canceled.
SAS Replace Contracts
- SAS replace is the other way SAS contracts can be conducted
- Different from a NANS contract, SAS replace essentially binds the buyer to a coffee, however, gives the buyer the option to sample multiple coffees until they find one that matches their exact needs as laid out in the contract terms.
- This type of contract is usually used to either hold a price or to hold a commitment to a certain type of coffee, where the coffee is not very unique and has a range of acceptable qualities and/or cup profiles.
- SAS replace is usually done on a larger volume basis.
- For example, say there is a Kenya AA you are interested in purchasing. We have multiple lots of the Kenya AA,and you know you want one. We'll send you a sample of one of the lots, and then another, until you get one that you like. If approved, the coffee is yours and the contract is executed. If rejected, we will send you something else, and will keep doing so, until something is approved.