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Caribou Coffee Company, Inc. (CBOU) Message Board

  • surfermiked surfermiked Aug 14, 2012 2:01 PM Flag

    coffee prices

    are u selling with coffee prices dropping from 188 to 163 now . cbou gets to buy less expensive and sell for the same . better margin .

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    • So much for margins right? If they announced they locked in a coffee contract to purchase through March 2014 when the coffee prices were at $150 I would say that would improve margins for sure. Meanwhile they have warned TWICE (last two earnings) about their low commercial sales. Does Starbucks and Dunkin Kcups have anything to do with it? YES. Do I like Starbucks coffee? No it tastes like crap and I wouldn't drink it if I was offered free coffee for life. The funny thing, is that apparently millions do like them and enough to impact CBOU's Kcup/commercial sales.

    • CBOU does NOT buy their coffee from the commodities futures market. What the price of coffee is trading at has NOTHING to do with what they pay. They prebuy their coffee from private coffee farmers and lock into a fixed contract price. You should read the statements from company. I also thought the same way you did until I read what was available from CBOU.