Global coffee consumption increased 1.7% in 2011, well below average of previous 12 years amid macro-economic uncertainty, report states; global production to rise to 134.3 million bags

NEW YORK , June 6, 2012 (press release) – Coffee companies will look to benefit from the recent declines of coffee and sugar prices. Coffee futures in May saw their longest monthly slide in nearly 31 years as growing global supply is far exceeding current demand. A drop in coffee bean prices could assist profit margins in the industry. The Paragon Report examines investing opportunities in the Coffee Industry and provides equity research on Caribou Coffee Company, Inc. (CBOU) and Coffee Holding Co., Inc. (JVA).

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According to Volcafe, one of the world's leading coffee merchants, global production will increase to 134.3 million bags, beating the previous forecast of 132 million. World consumption of coffee increased only 1.7 percent in 2011, which was below the average of the previous 12 years, according to the International Coffee Organization. "Macro-economic uncertainty remains a major driver in the coffee market, impacting currency relationships and potential future demand," analysts at Rabobank International stated in a recent e-mailed report.

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Caribou Coffee Company, the second largest company-owned premium coffeehouse operator in the United States, has officially opened its 100th international operating location. The 100th international Caribou coffeehouse is located in the cosmopolitan and bustling city of Istanbul, Turkey. Caribou's 100th operating coffeehouse, which opened on May 10, 2012, is Caribou's 6th store in Turkey.

Coffee Holding Co. last month announced the launch of a new gourmet brand, Superior Selections, with its joint venture Generations Coffee Co. LLC and Associated Wholesale Grocers, Inc. "We are pleased to be partnering once again with a company with the reputation and position in the industry that AWG maintains. As one of the leading private wholesale grocers in the Midwest we believe this program will be highly beneficial for both companies' sales in the fastest growing segment of the coffee industry, the upscale premium space," said Andrew Gordon, President and CEO.

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