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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