Heller: I Picked The Wrong Week to Quit Drinking Coffee
The most mainstream ways to get investment exposure to our love affair with coffee these days is via Starbucks
I could never understand paying three of four bucks for a cup of coffee, but given the effects of my current attempt to quit, I am beginning to understand why people do. Still, I've never owned Starbucks, have completely missed the boat on this one, and yet it still appears a bit pricy to me here. What do you expect from a value investor? However, given a decent pullback in the stock, it's one I'd certainly consider.
Green Mountain, which took the coffee market by storm in its own right, has been my nemesis. I'd been of the opinion that single cup brewing was a fad, and that sooner or later, consumers would settle for the lower cost option of brewing full pots of coffee at home.
While Green Mountain has had its share of issues, including an SEC investigation and questions about accounting practices, it has rebounded nicely since trading in the teens last July. It seems that consumers love their Keurig machines, and don't mind paying up for K cups. I still wonder whether ten years from now, Keurig machines will be collecting dust in the back of closets. My only exposure to Green Mountain has been on the short side, which was a mistake. Yet, I can't imagine going long, either.
Of course, there are other, less mainstream ways to get coffee exposure. I've followed the plight of Farmer Brothers