Investing in coffee futures

Our embrace of coffee culture continues unabated. Every High Street is dominated by The Big 3 – Costa, Starbucks & Caffe Nero – and the back streets increasingly proliferate with ever funkier artisan shops providing the perfect espresso.

I’ve succumbed to the addiction, seeking out the individual caffeine havens tucked away in the lanes of London, Paris & Australia, and anywhere else we explore. Poor Gill….she’s a tea person.

I actively avoid The Big 3, despite being a small shareholder in Costa owner Whitbread. Apart from when they emailed me a free £5 download voucher, obviously.

And now I’ve also invested in a bundle of Starbucks outlets, through a franchise operator who was the first UK franchisee and which is now looking to further expand its portfolio of home counties shops.

Yes I know, Starbucks are the work of the devil, vilified a few years ago for their minimal UK tax payments. But I’m afraid I’m not a particularly ethical investor and besides, they’ve addressed a lot of their corporate shortcomings.

I can’t see us being weaned off the caffeine addiction any time soon, and this franchisee looks like a slick operator. This is part of an attempt to de-risk our pension portfolio away from direct equities, and – if the investment goes according to plan – should result in a profitable exit a few years down the track.

So keep on ordering those skinny lattes, espresso macchiatos and flat whites. And who needs more clothes shops when you could be drinking coffee?

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