New Coffee Drinkers
knight@knightider
+6.8%
since Oct 6
The idea
I believe coffee drinking keeps expanding for years, especially as markets like China and India shift away from tea and younger drinkers at home pick up the habit. I own it two ways: the chains pushing store counts into those new drinkers, and the roasters, bottlers, and equipment makers who get paid regardless of which chain wins. The mix leans broad and steady, pairing large stable names with faster growers, and I keep 10% in cash to add on dips. I'd rethink this if coffee growth stalls or tea holds its ground in the markets I'm counting on.
What it owns
- These chains open stores and sell coffee directly to new drinkers in the US and Asia. · Starbucks CorporationIt is the brand most new coffee drinkers meet first, and it continues opening stores in China., McDonald's CorporationIt sells coffee at a scale no other chain matches through McCafé, so more coffee drinkers anywhere lifts it., Dutch Bros Inc.Its growth comes almost entirely from new shops and new younger American drinkers adopting coffee., Yum China HoldingsIt is pushing coffee through its KCOFFEE brand and huge store network in the world's largest tea market., Restaurant Brands InternationalIt owns Tim Hortons, which is expanding into China and India, exactly the tea markets shifting toward coffee.40%
- These companies roast, bottle and distribute coffee for everyone, so they win whichever chain or brand comes out ahead. · Coca-Cola CompanyIt owns Costa and sells canned coffee worldwide, getting paid on new drinkers whether they buy a cup or a can., Westrock Coffee CompanyIt roasts and packages coffee for the brands and grocery labels, winning no matter which chain gets the new drinkers., PepsiCo Inc.It bottles and distributes Starbucks ready-to-drink coffee, so every new drinker buying a bottled frappuccino pays it too., Coca-Cola FEMSAIt bottles and moves canned coffee across Latin America, a region where younger drinkers are adopting coffee., BRC Inc. (Black Rifle Coffee)It roasts and sells canned energy coffee aimed at younger drinkers buying from coolers and shelves.32%
- More coffee drinkers means more brewing machines and more cans for canned coffee, whoever sells the cup. · Middleby CorporationIt makes the brewing equipment every new coffee shop needs, so cafe expansion anywhere means orders for it., Ball CorporationIt makes the aluminum cans that ready-to-drink coffee ships in, so more canned coffee drinkers means more cans., Crown HoldingsIt makes cans for canned coffee, so growth in ready-to-drink coffee means more demand for its containers.18%
- Cash10%