For Coffee Shops, a Caffeinated Jolt
Several weeks ago I talked about falling cotton and cocoa bean prices and what that could mean to the margins of those affected -- companies such as Hanesbrands (HBI), True Religion (TRLG), Hershey (HSY) and so on. While getting updated on those particular commodity prices, I noticed coffee prices have fallen, as well, and that could be a boon to a number of companies that sell the sweet java.
Much like the strong move in cotton and cocoa prices last year, coffee fell victim to smaller-than-expected crops in Brazil, Colombia, Kenya and Vietnam. That combined with rising demand from China and other emerging markets, characterized by an upwardly moving demographic with increasing disposable income. The result was a steep climb in coffee prices -- to a peak of $2.31 per pound in April 2011, up from the 2010 average price of $1.47, according to the International Coffee Organization. ...439 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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