In addition to international expansion, Starbucks executives push the importance of the consumer experience. Essentially, the firm is dynamically changing its impressions by always offering something new.
Adding additional segment offerings like perishable food allows Starbucks to generate increased revenue with the resources it already has.
Since the 2009 recession, the company has sharpened its focus on increasing international store count to mitigate the risks attributable to local unfavorable economic conditions.
Dunkin’ Brands Group is a franchisor of quick-service restaurants, serving hot and cold coffee and baked goods in addition to ice cream. It’s a strong, growing player in these segments.
Starbucks indicates that it uses derivative contracts to hedge commodity price risks. These contracts typically don’t have a lifespan longer than five years.
Starbucks’ main cost driver is its price per pound of coffee beans. The two most consumed coffee beans are Arabica and Robusta blends.
This business model has allowed Starbucks to be the first coffee firm to put retail locations in each of the BRIC nations and many more.
Starbucks’ revenue mix is weighted in favor of beverages. This should come as no shock, considering the firm’s roots trace back to a single coffee shop at Pike’s Place Market in Seattle.
Starbucks began in 1971 as a single coffee shop in Seattle. Today, it’s the world largest coffee retailer, with over 19,000 locations in more than 60 countries (as of FY2013 end).
Poor economic conditions like in 2008 will negatively impact earnings and sales at Boston Beer Company, as consumers aren’t willing to spend much.
The composition of a company’s board is often overlooked, but people and talent are two important factors that drive value.
Investors shouldn’t only expect Boston Beer Company’s sales growth of approximately 17% to translate into equal growth in earnings.
Even compared to a smaller craft beer company, Craft Brew Alliance Inc., Boston Beer Company has thrown out an impressive 20.6% over the last 12 months.
Despite being the largest craft brewer in the United States, Boston Beer Company lacks the scale to compete with companies like Anheuser-Bursch InBev.
The four main ingredients that Boston Beer Company uses are malt, hops, yeast, and apples. Malts, hops, and yeast are part of most beer-making processes.
Boston Beer Company’s low debt profile is one area where management could unlock shareholder value in the future.
What have been the main drivers of spirits growth in the past, where will future growth come from, and how can you invest in the industry?
Distributes and sells food and nonfood items at wholesale
Engages in production, processing, marketing, and distribution of fresh, frozen and value-added chicken products
Recycles and process meat by-products