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Higher Costs and Slowing Economy Begin to Weigh on Coffee Stocks

Paragon Report Provides Equity Research on Coffee Holding and Green Mountain Coffee Roasters

NEW YORK, NY -- (MARKET WIRE) -- Sep 27, 2011 -- The Paragon Report examines the outlook for the Coffee Sector and provides equity research on Coffee Holding Co. (NASDAQ: JVA) and Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR). Access to the full company reports can be found at:

www.paragonreport.com/JVA

www.paragonreport.com/GMCR

After skyrocketing for most of 2011, several coffee stocks are finally beginning to cool off. While coffee demand continues to outpace supply, the surging price of Arabica beans has boosted costs at coffee franchises. Coffee prices are set to remain high as farmers increased maintenance and fertilizer use will not boost production enough to match growing demand. The International Coffee Organization estimates that global coffee consumption rose 2.4 percent to a record 134.0 million 60-kg bags in 2010, while world 2010/11 coffee output is forecast at 133 million 60-kg bags.

Several coffee companies are raising prices to offset surging costs. Recent earnings reports show that boosting prices has done little to cut demand (so far).

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the coffee industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Green Mountain Coffee Roasters is one of the few coffee stocks to withstand the downturn in the markets, as shares touched 52-week highs earlier this month. The company reported third-quarter net sales of $717.2 million, an increase of 127% over the same period in the previous year. The company reported net income of $56.3 million for the third quarter of fiscal 2011.

In its most recent quarter, Coffee Holdings said that cost of sales was $33,732,594, or 90.3% of net sales, as compared to $17,068,938, or 85.7% of net sales for the year earlier period. The company said the "increase in cost of sales reflects the increased cost of green coffee."

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer.

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