7 best coffee stocks | GOBankingRates

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Put that little extra in your wallet when enjoying the hottest cups of java on the market.

When it comes to investing, launching new products like Tesla vehicles or Apple iPhones can give your portfolio growth a boost. But a safer option is to choose solid investments in industries that have experienced sustained growth over the decades.

The coffee industry is one of those stable industries. At the start of the pandemic, there was a home brewing boom, and now the growth in the coffee industry is concentrated in coffee shops.

Are coffee stocks a good investment in 2021?

As the COVID-19 pandemic recedes, the return to public space has strained already taxed coffee supply chains. Nonetheless, modest but steady growth will increase demand for coffee by 1.9% in 2021. Check out these seven best coffee stocks that can help you diversify your portfolio.

Coffee suppliers

Investing directly in coffee suppliers can lead to sustainable growth, as every corner of the coffee industry needs to source beans from suppliers.

1. The JM Smucker company

Symbol: SJM

To take advantage of investment opportunities in the retail coffee sector, investors cannot sleep on the JM Smucker Company, which distributes popular home coffee brands like Dunkin and Folgers. These commodities make JM Smucker a flagship of the home coffee industry, a $ 10 billion market.

With an annual growth rate of around 3% as of September 24, 2021, JM Smucker continues to grow in the era of the pandemic.

2. Nestlé

Symbol: NSRGY

As a producer of much more than coffee, the Swiss powerhouse Nestlé maintains an excellent position in the consumer goods investor market. With nearly 15% increases in 2021 on its Nespresso coffee range, Nestlé is showing steady growth in the coffee sector. Overall, Nestlé stock has grown over 3% year-to-date through September 24, 2021, inspiring confidence among traders.

3. Farmer Brothers Co

Symbol: CLOSED

With over a hundred years in the coffee business, Farmer Brothers Co is a sound investment. Based in Texas, Farmer Brothers Co is unique in roasting and distributing its own coffee. In fact, this is just one of six such companies based in the United States.

Concerns arose several years ago about the transition from a family structure to a board of directors, but positive growth after the pandemic has left investors with hope that Farmer Brothers Co is back on track for excellent growth. . In fact, since the start of the year, the value of his stock has increased by over 95%.


Cafes and coffee shops were hit with mandatory closings during the 2020 pandemic. But with innovation that allowed rapid pivots to online ordering and pickup systems, some of these cafes have gone out of business. uncertainty stronger than ever and as promising portfolio prospects.

4. Starbucks

Symbol: SBUX

You see them on every street corner. Boasting a resilient and popular coffee and product line that is likely not going anywhere anytime soon, Starbucks shares have seen a 35% increase in the past year to September 24, 2021. Build the longevity of your wallet with a solid foothold like Starbucks.

5. Lucky

Symbol: LKNCY

This Chinese coffee company has been making waves in recent years. The cashier-less business is home to nearly 4,000 stores, giving Starbucks a run for its money in mainland China.

Coffee Luckin’s stock is an attractive option for investors, with cumulative gains of nearly 77% as of September 24, 2021. Its price has been steadily rising, experiencing only a slight, up-and-down drop in the face. at the The Evergrande debacle.

6. Restaurant Brands International Inc.

Symbol: QSR

With a slow and steady 2021 growth factor of 5% as of September 24, 2021, Restaurant Brands International Inc. holds promise for investors looking to participate in the cafes market action.

Clever leadership has helped Restaurant Brands International Inc.’s coffee shop, Tim Hortons – and other Restaurant Brands International Inc. Burger King and Popeye’s franchises – weather the pandemic. Restaurant Brands International Inc. is now investing funds in the revitalization of Tim Hortons, which could herald substantial growth for the chain.

Brewing technology

A coffee bean is nothing without the materials to craft the perfect cup, which is why you should consider investing in one of these leading coffee technology companies.

7. Keurig Dr Pepper

Symbol: KDP

As the classic disruptor who changed the way people around the world brewed and consumed coffee, Keurig was once a benchmark for stock, only to drop dramatically in 2018. However, with millions stuck brewing coffee at home in 2020, and the company acquiring Dr Pepper, Keurig has rebounded 80%.

A diverse product line including brewing machines and K-cups has kept Keurig’s modest but steady growth healthy and stable. Building on this vast product line and the desire for easy home brewing options, Keurig is a good buy.

Wake up and smell the benefits of coffee

Adding coffee stocks to your portfolio is a great way to capitalize on a consumer good that people love to buy over and over again. Make sure you diversify into the coffee market, dividing your investment funds among vendors, coffee shops, and coffee technology to maximize your returns. Just as companies themselves often seek to integrate all aspects of the supply chain into their business model, savvy investors can also benefit from every step of the coffee market.

Final take

When exploring coffee stocks, remember that many coffee companies like Keurig Dr. Pepper or Nestlé have a larger market than just coffee. Take into account potential market fluctuations in their other products when projecting coffee performance, as any growth in the coffee sector may simply be absorbed by market contraction in another sector.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We verify every statistic, quote and fact using reliable primary resources to make sure the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

About the Author

Emily Cahill is a writer with over three years of experience creating digital content. Previously she worked as a freelance editor while attending Trinity College for English / Rhetoric.
She specializes in SEO-driven content that highlights the unique properties of a product or service while making them digitally ‘findable’, especially for the finance, geek culture, and business niches. lifestyle.

About Glenda Wait

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