New York, New York (PressExposure) April 13, 2012 -- In a recent Penny Stock Detectives article, editor Danny Esposito explores a fascinating (and profitable) development: the obsession the East has with mimicking what they perceive as the "good life" experienced here in the West. Esposito says that brand names originating here in the U.S. have been very successful in Asia, because they reflect the lifestyles of the people in the West. In this same vein, the East has been traditionally associated with tea instead of coffee, but coffee is perceived as the drink of the West, and so the East is once again attempting to mimic the West with this agricultural commodity. And this could lead to profits for smart investors.
"While the global growth of coffee is expected to be just under two percent in most parts of the world this decade, Asia-led by China and India-and Africa's growth consumption of coffee is expected to be roughly four percent or double the world demand," says Esposito.
According to the editor, Starbucks is planning to expand from 500 stores to 1,500 stores in China in the next three years, which will make China the largest concentration of stores for Starbucks outside of the U.S. As reported in Penny Stock Detectives, Starbucks admits that it is facing competition from local companies in both China and India as they get on the coffee bandwagon.
Café Coffee Day, India's largest coffee maker, is amazingly planning to quadruple the amount of stores it operates in India to sell the now popular coffee beverage to 5,000 stores in just a few years, according to Esposito's Penny Stock Detectives article.
Esposito says that the price of coffee has been hit hard recently. This agricultural commodity is trading lower, because traders are expecting a strong crop from Brazil this year. However, according to the editor, Columbia is recording its worst crop of the popular agricultural commodity due to bad weather.
Although Brazil is a leading supplier of coffee worldwide, Esposito notes that, even though Brazil is having a strong crop, the number of bags of this agricultural commodity the country is producing is coming in below what it normally produces on average of this agricultural commodity.
According to Esposito, this means that any spell of bad weather that will hurt any of these crops could send the price of coffee appreciably higher, since supply right now is just enough to meet demand.
As Esposito says, Asia has taken to coffee just like the West has. As demand continues to increase over the next decade for this agricultural commodity, the editor feels that supply will have to increase to meet this demand. Since coffee prices are depressed and supply is adequate at the moment to meet demand, Esposito says, any supply disruptions could mean a sharp spike in this agricultural commodity.
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