Companies selling coffee are expected to continue to skate by with high prices on premium coffee...


Companies selling coffee are expected to continue to skate by with high prices on premium coffee despite the recent drop in coffee commodity costs. Channel checks and recent sales reports indicate demand and pricing power is as strong as ever. Perking up: Starbucks (SBUX), Dunkin' Brands (DNKN), McDonald's (MCD), Green Mountain Coffee (GMCR), Tim Hortons (THI), and Whole Foods Market (WFM).

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Comments (6)
  • Michael Bryant
    , contributor
    Comments (6725) | Send Message
     
    $7 coffee is outrageous. You can get (GMCR) K-cup coffee for $0.50 a piece at Costco. And the coffee is pretty good and strong. (DNKN) K-cups are $0.90 a piece at (DNKN) stores. Sure, you have to buy the machine which is $199, but if you drink coffee every day, it is worth it. At $7 for (SBUX) most expensive coffee, 29 days is slightly over $199.

     

    And shop around. The gas station I go to sells free coffee every Wednesdays if you buy a $5.99 mug. But their coffee is not as tasty. Still, free is free.

     

    And Cup a Joe sells pretty good "coffee of the day" for $2 and specialty coffee for $3.50-$4.50. They have about 30 different coffee beans. New Guinea coffee was pretty good.
    5 Apr 2013, 10:00 AM Reply Like
  • ccardani
    , contributor
    Comments (25) | Send Message
     
    How do you "sell" something that is "free"? I'm confused.
    5 Apr 2013, 10:25 AM Reply Like
  • jackooo
    , contributor
    Comments (1738) | Send Message
     
    If you hang around 7/11 stores you can get the coffee cup that patrons throw away and there is always some coffee in the bottom of it. Just get about 8 of these cups and pour the remaining coffee in each cup into one cup and you should get a 1/2 cup of coffee. Then have the clerk heat it up for you. Then add a 1/2 cup of milk with some sugar. It is free!!!! Enjoy it Michael!!
    5 Apr 2013, 12:13 PM Reply Like
  • Barn Al
    , contributor
    Comments (151) | Send Message
     
    who is spending $7.00 for coffee? I get the SBUX Via at Costco for about $0.65 per cup. Add hot water. Can't beat it. Perfect for traveling.

     

    If somebody is willing to spend $7.00 a cup at SBUX, I LOVE THAT as a share holder.

     

    Look at the ICE futures for the coffee C contract. Prices haven't been so low in years. If SBUX can keep selling their product at the old premium levels, we should see some outstanding earnings in the next several quarters. You know they are hedged. Long the stock plus some 2015 Leaps - good luck all
    6 Apr 2013, 03:31 PM Reply Like
  • Barn Al
    , contributor
    Comments (151) | Send Message
     
    ...perfect jacko...great plan. Lol..
    6 Apr 2013, 03:53 PM Reply Like
  • jpmj4847
    , contributor
    Comments (566) | Send Message
     
    Go aboard for a cheaper cup of coffee from a USA CO and then purchase a bean plantation. LOL...jpmj4847
    5 Apr 2013, 10:43 PM Reply Like
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