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Author: c0ffeen0te Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25166  
Subject: Re: Poll: Free Starbucks Card Date: 2/14/2006 11:56 AM
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MES: The old saw in the coffee biz is -

Back in the good old days (whenever that was) coffee used to trade at $2/lb (green) and sell for 50 cents/cup

Now it trades at 50 cents/lb and $2/cup

(which explains why we are all long SBUX)

I guess 50 cents/lb green is now well over $1 (which is a good thing for all) but as you say, $2/cup ain't nearly enough.

PS for those into the math:
1 lb of green coffee = about 80-85% of 1 lb roasted coffee
1 lb of roasted coffee = 100 cups brewed at home by the average american
(ergo, even at $1.25/lb green, 1 cup costs about 1.5 cents; less for the commercial stuff that use a lot of cheap robusta beans)

1 lb of roasted coffee = (just a guess) maybe 40 shots espresso at Starbucks (any baristas out there who can confirm?) and yeah the yield will be at the low end due to the dark roast but still, maybe 4 cents/shot?? Of course does not include the milk and all the rest...
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