Information has been buzzing in the economic press lately about the possible takeover of Peet’s Espresso (PEET) by Starbucks (SBUX). This is on the heels of the news about the partnership of Starbucks with Green Mountain Espresso Roasters (GMCR).

Some traders think about McDonald’s Corporation (MCD) to be a coffee retailer. Nevertheless, for merchants with a main product of coffee, Starbucks is the most significant, with a market cap of over $ 26 billion. The stock trades at 26 instances existing earnings and twenty instances forward earnings. It also pays a yield of 1.five%.

Another way to play America’s (and the world’s) need for espresso is to invest in the wholesale espresso roasters. Coffee Keeping Co., Inc. (JVA) is a roaster of wholesale espresso which markets wholesale green espresso, non-public label coffee, and branded espresso in the United States and Canada. The stock trades at 13.5 periods earnings and has a ahead price tag to earnings ratio of eleven. The yield is a generous two.seven%.

If you think the price tag of coffee is heading to rise, you can always invest in the iPath DJ-UBS Espresso TR Sub-Index ETN (JO), which attempts to track the Dow Jones-UBS Coffee Total Return Sub-Index.