It will come as no
surprise to investors that Americans in particular truly love their coffee. We
consume more java in the U.S. than any country on earth, with some 61% of all
adults drinking just over three cups of coffee a day on average. A big cause of
this consumption trend is the hectic lifestyle of people in the U.S., which as
a country works harder than any other country on the planet according to the
leading statistics. International Labour Organization stats for instance
indicate that U.S. workers clock in 137 more hours each year than workers in
Japan, 260 more hours each year than workers in Britain, and almost 500 more
hours per year than French workers. Some 134 countries around the world set
laws governing the maximum length of the work week, but not here in the U.S.,
where reportedly approx. 85.8% of males and 66.5% of females work over 40 hours
a week.
Naturally, these factors
also mean that Americans increasingly drink more and more of their beloved
coffee on the go, and foodservice sales of the stuff by companies like Dunkin’
Donuts (NASDAQ:DNKN), McDonald’s (NYSE:MCD) and Starbucks (NASDAQ:SBUX)
unsurprisingly made up approximately 77% of the $48 billion plus market last
year. Globally, coffee consumption is also increasing markedly, according to a
recent study by the International Coffee Organization, with a 25% uptick seen
in the cards over the next five years alone, as societies like China, India and
Latin America continue to be westernized. Fueling this trend are data points
like coffee’s having dropped to its lowest price in a year as of mid-February
2015, as positive weather in the primary global exporting country, Brazil, has
ignited heavy selling among traders and producers, with Arabica futures
following suit.
More to the point, trend
analysis in the National Coffee Association’s most recent annual consumer
report indicates that U.S. consumers are moving away from sub-gourmet coffees
and turning towards specialty coffees and espresso-based drinks, further
fueling the growing foodservice coffee market, which focuses on these
categories as the real money makers. Perhaps we instinctively are drawn to the
stuff, given our stressful always on the go lifestyles, as evinced by a new
study out of Germany indicating that regular consumption of coffee helps to
protect our DNA. This latest study adds to previous research which showed
regular consumption of coffee helps to decrease oxidative stress damage in
white blood cells that is linked to an abundance of free radicals, giving
investors a clear window into the true foundations of the market, which are
rooted firmly in the beneficial molecular biology of coffee, not just its
deliciousness.
One of the oldest adages
in the investing world is that the companies who really profited during the
famous California Gold Rush of the mid-1800’s were the ones selling picks and
shovels. This is no less true today in the foodservice coffee industry and one
need look no further than a company like Coastal Integrated Services, Inc.
(OTC:COLV) for validation. COLV, via their wholly-owned Simply Lids, Inc.
subsidiary, is the developer of an environmentally sustainable and recyclable
lid designed chiefly for hot beverages, but which is also well-suited to other
drinks meant to be consumed on the go. The lid features a large, easy to move
slider that won’t come open accidentally, yet is big enough to deliver a
pleasing straight-from-the-cup experience to drinkers which is akin to downing
coffee straight out of the mug, unlike comparable disposable lids on the market
today that typically have a tiny opening and yet still manage to slosh and
splash hot coffee everywhere in the car, including onto the driver and their
clothing.
The innovative Simply
Slider™ makes the company’s lids arguably the safest and most functional
beverage lid in the sector today and this simple, yet brilliant feature was a
huge reason for the company’s lids receiving a nomination in early February of
2015 for the prestigious Edison Award from the VPI of an experienced global
business supply chain partner to companies like McDonald’s, Havi Global
Solutions. Despite the awesome drinking experience available with the company’s
lids, devoid of messy spills and splashes, these lids use significantly less
plastic and have a much lower carbon footprint than other lids on the market,
making them highly appealing to environmentally conscious consumers and
businesses. This environmentally sustainable lid is also a stark contrast to
Keurig Green Mountain’s (NASDAQ:GMCR) eight billion plus K-Cups used each year,
enough to circle the globe end to end over ten times at the equator, which are
now gaining increasing scrutiny from environmental groups and consumers alike.
Simply Lids was even
requested recently by one of the largest providers of hot beverages in the game
today to offer up some pricing quotes for supplying over two billion coffee
lids, a clear indicator that the sector has taken notice of the company’s
innovative design.
Get a closer look at the
lid by visiting www.simplylids.com
Or, learn more about the
parent company by visiting www.coastalintegratedservices.com
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