While finding success in one field is considered by most to be an incredible feat, taking on several—especially starkly different industries—and dominating their competitive markets is an accomplishment few can add to their list of accolades. Brazilian-born, Monegasque entrepreneur, Luiz F Costa Macambira is one of those select few. After gaining notoriety as a commodity trader and nearly cornering the Russian coffee market, Luiz harnessed his global network of business contacts and unexpectedly pivoted his already illustrious career from trading to publishing.
While many traders are certainly legends in their own right—George Soros, Marc Rich, Nelson B. Hunt—Luiz created a league of his own, by paving a less traditional trading route.
What differentiated his strategy from that of others in the space, was an emphasis on soft commodities, namely coffee. Typically traded by multinational giant companies, coffee could be traded with less capital if backed by a sophisticated producer’s finance schemes. Coffee producers were often unprepared to deal with new and less traditional market and deal structures, which is where Luiz came in. He provided them with key services such as financing, insurance, and logistical solutions. He then repeated the formula across a range of soft commodities.
Nicknamed “the King of Coffee” by his business partners, Luiz expanded the spot market for coffee in the early 1990s by drawing business away from the larger established companies that relied on traditional methods for sales. The proving ground for his unique approach to the industry was Russia, and the subsequent emergence of its new economy. By operating faster, and with greater determination and skill than the giant competitors, Luiz perfected his system of trading independently of big firms. The truth is that he went where others didn’t go or rather, didn’t dare to go without knowing the grounds. “Most big corporations would run away from uncharted waters, closed economies, and natural disasters; he ran towards them.
His business model would have been merely a great idea without the highly aggressive, risk-hungry style with which he implemented his trading,” says his business associate.
Beginning in the early 1990s, Luiz and his Russian business partner started marketing several coffee brands in Russia. By 1993, they broke up the cartel of the major companies who controlled the coffee business, nearly cornering
the Russian coffee market—a major feat given the nature of the politics and economics at play during those years.
Although it was a major accomplishment, his most visible legacy came many years later after he retired from trading and made the switch from running businesses to enjoying the high life in Monaco. There, the larger-than-life entrepreneur founded Forbes Magazine, bringing the iconic media company to the principality. It was a natural fit, with both having a rich and iconic history. Following the success of the Monaco edition, Luiz expanded his media business to Belgium, the Netherlands, and Luxembourg, making his, one of the fastest-growing European media companies.