Thursday was a good day for commodities, this holds true even for the little things in life we enjoy to eat or drink.
Shares of the iPath DJ-UBS Coffee ETN (NYSE:JO) brewed 1.14% higher on Thursday. Although the world production of coffee is rising, it is still outmatched by the rising demand for the morning fuel. Within the last year, shares in Starbucks (NASDAQ:SBUX) have steamed 45% higher, and competitor Green Mountain Coffee Roasters (NASDAQ:GMCR) has more than doubled in price.
Pepsi (NYSE:PEP), the famous soft drink maker, is also in the ag business through their snack product line. These include: Doritos, Quaker oatmeal, Life cereal, and Pasta Roni. In the past month, shares have increased nearly 6%. Due to rising oil prices and the sustainability movement, Pepsi has announced a new 100% plant based bottle. The bottle will be made from pine bark and switch grass. Not all rising commodity costs can be absorb by the company though. Pepsi has also announced plans to increase Tropicana prices up to 8% due to the cold winter in Florida. Rival Coca-Cola (NYSE:KO) has also announced similar price increases.
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Disclosure: No positions.