Invest in Your Caffeine Habit with These Coffee Stocks

In 2018, the worldwide coffee industry was worth $45.4 Billion. Try doing the math on how many oat lattes that’s worth.

Though it’s staggering to realize just how much coffee Americans alone drink, it’s quite understandable. We’re busy people, after all, with places to go and people to see. How could we do it without caffeine?

Since coffee’s popularity shows no signs of slowing down, some may find it wise to invest in the beverage. Let’s spill the (coffee) beans on how to do just that.

The old Starbucks vs. Dunkin’ dilemma

Are you a Starbucks fanatic or a diehard Dunkin’ lover? It seems like everyone’s got a side these days.

Fortunately, when it comes to buying on the market, you don’t have to make a choice. Both Starbucks ($SBUX) and Dunkin’ Brands ($DNKN) are publicly traded. Investing in Starbucks means you’d primarily put your money towards the chain’s signature drinks, as well as Teavana’s teas. If you go with Dunkin’ Brands, it would go towards Dunkin’ (formerly Dunkin’ Donuts), Mister Donut (a chain similar to Dunkin’), or Baskin-Robbins, the ice cream chain.


Other coffee giants

Other companies could be worthy investments too. Farmer Brothers Co. ($FARM) and Coffee Holding Company ($JVA) both manufacture and distribute their products to restaurants and other companies. Davids Tea ($DTEA) is a Canadian coffee chain with stores in the U.S. If it’s Tim Hortons you’re after, look into Restaurant Brands International ($QSR), parent of fast food chains such as Burger King and Popeyes.

Some coffee companies aren’t on the market. Pret A Manger and Peet’s Coffee and Tea, both of which are expanding their American business, are owned by the privately held JAB Holding Company. Caribou and Shipley Do-Nuts are private, too.

ETFs = every flavor at once

Can’t pick between your favorite java chains? Check out an exchange-traded fund, or ETF. ETFs are groupings of multiple, similarly focused companies into one basket of stocks.

When it comes to coffee, two ETFs exist to help you out. Dow Jones-UBS Coffee ETN ($JO) and Pure Beta Coffee ETN ($CAFE) are there if you want to invest in multiple cups of joe at once.

Whether it’s your breakfast of choice, a relaxing end to the day, or another drink to complain about, coffee likely impacts your life in some way. If you’re dealing with it anyway, it may make sense to invest in it.

Make sure to do your research before making any investments. Just like you wouldn’t waste four bucks on a watered-down latte, don’t throw your cash into the first coffee stock you see.