“The strike shows that Colombian producers, who often set trends for the wider industry in Latin America, are struggling even if prices remain much higher than in previous downturns. Arabica coffee prices have fallen 55 per cent from a 30-year peak in 2011 of more than $3 a pound, but remain well above the low of $0.50 set in 2002. Higher production costs are a further problem.”
http://dailycoffeenews.com/2013/02/26/thousands-of-striking-colombian-coffee-farmers-met-by-force/
Two small companies joining forces might not normally attract much notice. But the Nov. 3 acquisition of Diedrich Coffee (DDRX) by Peet’s Coffee & Tea (PEET) combines two especially hot stocks at a time when the coffee industry is an investor favorite.
The $213-million buyout of Diedrich caps an extraordinary stock market run. The Irvine, Calif., company’s shares traded at 36¢ at the start of 2009 and have rocketed more than 70 times higher, ending with Peet’s cash-and-stock offer of $26 per share.