Starbucks (SBUX)

[b0rderc0llie]

Hi Lena and Helios,

Thanks for the information

[kennynah]

i, too, can attest to the side effects of not having kopi ... that is, my entire energy gets into thinking about kopi... kopi and smokes...they are best buddies.. one is caffeine rich and the other, nicotine...

[b0rderc0llie]

Thanks Kenny, for the information too.

How can we invest in caffeine then? SBUX, coca cola, pepsi cola? Futures contracts on cocoa and coffee?

[iam802]

Branching out to retail channels .

In fact, there is a growing trends of people buying those 'single cup' coffee machines.

--
Starbucks Will Sell Keurig Capsules at Wal-Mart in November

http://www.bloomberg.com/news/2011-08-3 ... ember.html

Starbucks Corp. (SBUX), the world’s largest coffee-shop operator, will begin selling its namesake coffee and Tazo tea brand in Keurig single-cup packets in November.

“We’ll be launching in U.S. food, drug, mass, special and department store channels in early November,” Jeffery Hansberry, president of Starbucks’ global consumer products business, said in a telephone interview yesterday. Retailers including Wal-Mart Stores Inc. (WMT) and Target Corp. (TGT) will sell the K-Cups, he said.

Chief Executive Officer Howard Schultz has sought to boost sales with single-serve beverages that customers can brew at home. This year, the Seattle-based company began selling Via instant-coffee packets in China and in March signed a deal with Green Mountain Coffee Roasters Inc. (GMCR) to sell K-Cup capsules for Green Mountain’s Keurig brewer.

“There will be some cannibalization,” said Phillip Juhan, an analyst at BMO Capital Markets in Atlanta. “The Keurig machine certainly has convenience advantages so I think that you’ll see some conversion” from Starbucks packaged coffee to K-Cups. Juhan rates the shares “outperform.”

Starbucks rose 45 cents, or 1.2 percent, to $38.50 at 4 p.m. New York time on the Nasdaq Stock Market. The shares have gained 20 percent this year.

The company is doubling the number of countries where it sells Via, Hansberry said. Next month, Singapore, Thailand, Malaysia, Indonesia, South Korea and Australia will introduce the instant coffee.
Growth Plans

“Our ambition is to build a consumer-packaged goods business that one day could rival the size of our Starbucks retail business,” he said.

The K-Cups may add as much as 5 cents to earnings per share in fiscal 2012, Chief Financial Officer Troy Alstead said on a conference call in July. Revenue for Starbucks’ global consumer- products and food-service segment, which includes packaged coffee and tea sold in grocery stores, increased 26 percent to $266 million in the third quarter ended July 3, as total company revenue rose 12 percent to $2.93 billion.
About 9.1 million U.S. households have a Keurig brewer, compared with 5.4 million a year ago, according to Mitchell Pinheiro, an analyst at Janney Montgomery Scott in Philadelphia. He advises buying Green Mountain shares.

Net sales for Green Mountain’s Keurig business jumped 55 percent to $308.7 million in the quarter ended June 25 as consumers bought more single-cup brewers and K-Cups. Waterbury, Vermont-based Green Mountain sells K-Cups under different brands including Caribou Coffee, Gloria Jean’s and Van Houtte.
Earlier this month, Dunkin’ Brands Group Inc., the operator of 6,800 Dunkin’ Donuts stores in the U.S., started selling K-Cups in its shops. Starbucks has about 10,900 U.S. cafes.

[iam802]

Starbucks is pushing for those 'retail packaged' coffee at their stores.

They are kind enough to let me have a sample.

My verdict.

On the entry level, we have the usual Nescafe, and other home grown or regional brands from Malaysia... and even these it can be extended to the better coffee from UCC, etc found in supermarkets.

For those who spend a little bit more, they have those expresso (or some coffee making machines) at home. These group of people will probably be more particular about the quality of the coffee.

On the Starbucks sample. I can't say that I like the coffee. It just does not feel strong or smooth enough.

At that price, there are a lot more choices. Will I buy Starbucks coffee for home use? Personally, I will not.

I have the convenience of getting better coffee from the supermarket. And at what price range does Starbucks wants to compete at?

[kennynah]

big move this session...

earnings announcement coming out immediately after bell.... 20 mins more.

[iam802]

Mobile payment will be coming our way..

==
Starbucks in mobile payment deal with Square

http://money.cnn.com/2012/08/08/technol ... SF_BN_Lead

[winston]

Starbucks soars to an all-time high... shares are up nearly 20% over the past four months.

[winston]

Shares of Starbucks rise nearly 25% in four months

[winston]

THIS IS WHY A CRISIS CAN BE A GREAT THING

In the wake of a crisis, look to buy the world's best businesses on sale.

This is valuable advice we've shared many times in DailyWealth over the years... most recently in this educational interview.

It's advice that can lead you to life-changing investment returns. To see this advice in action, we look at the past 10 years' trading in Starbucks.

Starbucks is one of America's best businesses. It has a terrific brand name, terrific products, and excellent profit margins. When one of the most frequent statements in the country is "Let's meet at Starbucks," you know you have a good business.

But in a crisis, even good businesses can suffer huge share-price declines. That's what happened during the 2008 financial crisis.

During the panic, Starbucks fell from $18 per share to less than $7 per share. As you can see from the chart below, buying Starbucks during the panic was the thing to do. Starbucks has climbed to $90 per share... a more than 10-fold gain.

Source: www.dailywealth.com