Jun. 17, 2014, 6:57 AM
- Coffee output in India is forecast to rise after suffering a setback last year.
- Higher production from the region could increase global supply to pressure prices after a drought in Brazil has had major impact on the coffee market.
- Prices on bagged coffee has been increased by a wave of companies including J.M. Smucker and Kraft Foods.
- Wholesale coffee prices still have a big wildcard in the mix with the emergence of El Nino.
- Related stocks: SJM, KRFT, THI, SBUX, GMCR, MCD, JVA, KRFT, DNKN.
- Related ETF: JO
Jun. 10, 2014, 3:04 PM
Jun. 9, 2014, 12:45 PM
Jun. 6, 2014, 2:51 PM| 5 Comments
May 29, 2014, 12:12 PM
- Keurig Green Mountain (GMCR -2.3%) trades lower after fresh data from IRI indicates a deceleration in sales growth for the 4-week period ending on May 18.
- Unit growth fell to a 8.9% pace from 15.4% over the previous four-week period.
- The unit growth coincides with overall lower pricing from the company.
May 14, 2014, 11:25 AM
- Coffee prices could be driven higher later this year due to high demand for premium beans and a tight supply as a result of a harsh drought in Brazil.
- The International Coffee Organization forecasts H1 coffee production will be down close to 5%.
- The wildcard: An early outbreak of El Nino could also disrupt crops across South America.
- What to watch: Starbucks (SBUX), Tim Hortons (THI), McDonald's (MCD), and Keurig Green Mountain (GMCR) could get pinched if coffee prices push significantly higher. Analysts note not all of the input costs can be passed off to consumers and hedging strategies weaken above a price level of $3/pound.
- Related ETF: JO
May 13, 2014, 3:59 PM
- Today’s news that Coca-Cola (KO +0.6%) has increased its equity position in Keurig Green Mountain (GMCR +7.5%) to 16% from the original 10% purchase leads Canaccord analysts to believe that KO favorably views GMCR's positioning and growth opportunity in coffee, and has confidence in the upcoming Keurig Cold launch.
- Regardless of the timing of adding to its stake, Canaccord says the move illustrates the value in single-serve and with Coke as a 16% holder, "the strongest potential partner in cold beverages is fully engaged" with a significant material interest in the upcoming Keurig Cold launch, and the stake also could boost GMCR's valuation reflecting the addition of a premium over the speculation of a future take-out by KO.
May 13, 2014, 9:15 AM
May 13, 2014, 7:29 AM| 8 Comments
May 8, 2014, 9:16 AM
May 7, 2014, 5:45 PM
May 7, 2014, 4:33 PM
- Keurig Green Mountain (GMCR) +6.4% AH as FQ2 earnings and revenues beat estimates, buoyed by strong coffee sales and cost cuts.
- Sales of single-serve packs rose 13% to $898M, while sales of brewers and accessories rose 8.5%.
- FQ2 gross profit increased 10% and gross margin improved to 41.5% from 41.3%.
- Sees FY 2014 EPS of $3.63-$3.73 vs $3.72 analyst consensus estimate; sees revenues in the high single digits.
- Says it is expanding its partnership with J.M. Smucker (SJM) with a multi-year agreement to make and sell Folgers and other SJM brands in formats that work with new Keurig brewing systems.
- Authorizes a new share repurchase program of up to $1B over the next two years.
May 7, 2014, 4:15 PM| 4 Comments
May 6, 2014, 5:35 PM
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Apr. 28, 2014, 1:03 PM
- Single-serve brewing system sales rose 8% last year to $930M, although some key markets showed signs of saturation.
- Retail sales of single-serve brewing systems were flat in New York City, while they actually fell off in Washington, DC (-2%) and Boston (-3%).
- 19% of pod-based machine sales were online during the period.
- Related stocks: GMCR, SBUX
Apr. 28, 2014, 7:40 AM
- Coffee prices could keep rising as fresh estimates on Brazil's coffee harvest point to more weakness.
- Marex Spectrom expects a harvest in the 2014-2015 season of 49M bags vs. a prior forecast of 55M bags and 53.3M bags a year ago.
- Analysts say the Arabica supply situation is deteriorating due to harsh weather in Brazil
- Related stocks: SBUX, GMCR, JVA
- Related ETFs: JO
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