Celebrating National Coffee Day: Brewing Investment Opportunities in the Coffee Market

Ah, coffee! As we celebrate National Coffee Day, whether you prefer a classic black, frothy cappuccino, trendy cold brew, or the basic pumpkin spice latte (it’s that time of year, Brittany!), there is no denying the allure of a perfectly crafted cup of joe. In today’s unpredictable markets, our daily caffeine jolt seems even more crucial, offering both solace and a quick recharge. For investors, the coffee market is piping hot with enticing opportunities. Let’s explore a few:

 Starbucks (Nasdaq: SBUX): More than a coffee shop, Starbucks stands as a symbol of modern coffee culture. Its iconic green siren logo is recognized worldwide, and its delightful menu has reshaped the way we perceive coffee. While the stock has lagged behind broader markets recently, with SBUX dropping 7% against the S&P500’s 13% rise, the company’s prospects remain solid. Starbucks boasts an average annual revenue growth of 7.8% over the past three years, indicating a brand that still knows how to brew success. 

J.M. Smucker Co (NYSE: SJM): This might be a surprise for many. Known primarily for its fruit spreads and peanut butters, J.M. Smucker dominates the $10Bn U.S. at-home retail coffee scene with brands like Folgers®, Dunkin’ Donuts®, and Café Bustelo®. The recent buzz around Smucker? Their acquisition of Twinkies manufacturer, Hostess Brands, for a whopping $5.6Bn, including debt. Moreover, the company recently announcedthe sale of its Sahale Snacks® brand to Second Nature Brands in an all-cash deal valued at approximately $34M. 

Coffee Holding Co., Inc. (NASDAQ: JVA): Diving into the realm of small-cap stocks, we find Coffee Holding Co., a prominent integrated wholesale coffee roaster and dealer in the U.S. Touting a track record that spans three generations, Coffee Holding has weathered the ups and downs of the java industry and economic cycles. The latest “tea” on JVA is their merger and share exchange agreement with Delta Corp Holdings Limited, marked by the filing of a Registration Statement. A significant move, the merger is still contingent on various approvals. As the news percolated, JVA shares experienced a 2.74% hike in premarket trading, standing at 0.9050.

As we raise our mugs this National Coffee Day, remember that the world of coffee offers more than just a delightful morning routine. Embrace this beloved bean beverage. For those with a keen investor’s eye, it might just be the next big thing brewing in their portfolios. Cheers to growth, innovation, and, of course, coffee!

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Celebrating National Coffee Day: Brewing Investment Opportunities in the Coffee Market

Ashlee Vogenthaler

Markets Editor