Investing In The Future Of Coffee
TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
The coffee industry has been growing steadily over the years, and it's expected to continue to expand in the future. Here are some potential business opportunities in the coffee industry:
- Specialty coffee: The specialty coffee market has been growing rapidly as consumers become more interested in high-quality and unique coffee experiences. This presents an opportunity for businesses to offer specialty coffee products, such as single-origin beans, micro-roasted coffee, and customized blends.
- Sustainable coffee: Consumers are becoming more environmentally conscious, and this trend is driving demand for sustainable coffee products. Businesses can differentiate themselves by offering sustainably sourced and produced coffee, and by using practices that minimize their environmental impact.
- Coffee delivery: With the growth of online ordering and delivery services, there is an opportunity for businesses to offer coffee delivery services. This could include delivery of coffee beans, pre-made coffee drinks, or even a subscription service for regular coffee deliveries.
- Coffee tourism: As coffee continues to grow in popularity, there is an opportunity for businesses to offer coffee tourism experiences, such as visits to coffee tastings, coffee-related workshops, etc.
- Technology-enabled coffee: Technology is transforming the coffee industry, with innovations such as coffee machines that use artificial intelligence and mobile ordering apps. Businesses can capitalize on this trend by offering technology-enabled coffee products and services.
These are just a few examples of the potential business opportunities in the coffee industry. As the industry continues to evolve, there will likely be many more opportunities for businesses to innovate and grow. Of course, there are also plenty of health benefits from drinking coffee.
So, if an investor wants to sample some of the companies in this industry, there are a few available.
Starbucks (SBUX) is the Seattle, Washington based company with over 30,000 stores around the world that sell coffee, tea, blended drinks, sandwiches, pastries, and many other food and drink items. Starbucks has a large market cap of over $114 billion and pays a dividend yield of 2.05%. It recently has been seen trading at 35.6 times trailing earnings.
Coffee Holding (JVA) is a wholesale coffee roaster and dealer that manufactures, roasts, packages, markets, and distributes roasted and blended coffee for private labeled accounts and its own brands, with three product categories: wholesale green coffee, branded coffee, and private label coffee. With a very low market cap of $10 million, the company’s stock is very speculative. The stock has recently been seen trading at 27 times trailing earnings.
Another option is Farmer Brothers Company (FARM), a coffee foodservice company that manufactures, wholesales, and distributes coffee, tea, and hundreds of other foodservice items to retailers and foodservice providers.
Its customers include hotels, offices, restaurants, convenience stores, and other establishments. The company has a tiny market cap of $80 million, and is currently generating negative earnings, so this one should be considered extremely speculative.
So, are you going to put your money where your mouth is and consider investing in coffee stocks?
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Disclosure: Author didn’t own any of the stocks discussed above at the time the article was written.
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