More java (BRCC, CELH)
According to the National Coffee Association’s Spring 2024 report, 67% of American adults had coffee in the past day. That is more than any other beverage, including tap or bottled water. 75% of Americans had coffee in the past week, up 4% YOY. Driving the growth in coffee consumption was consumers over 60 years whose past-day consumption increased from 67% to 73%. Consumers aged 25-39 saw an increase in consumption from 67% to 70%, and consumers aged 40-59 saw a rise from 66% to 69%. Consumption by the youngest adults aged 18-24 remained flat at 47%. Drip coffee was the most popular preparation method at 37%, while single-cup brewers were second at 28%. RTD coffee was the third most popular preparation method, increasing from 8% to 15%. Unsurprisingly, the youngest adults lag behind the other generations in their coffee consumption as energy drinks have grown in popularity. Black Rifle Coffee Company has shifted its focus from RTD to bagged coffee. The latter has a much larger TAM as it is the most popular preparation method, and it also has higher margins for the company
Krispy Krunchy growth (LW)
Krispy Krunchy Chicken announced plans to open 700 stores this year. That would bring the chain to over 3,500 by the end of 2024. The company opened 500 stores in 2023. The fast-food chain opens locations primarily inside non-traditional locations, including convenience stores. The menu features French fries. One of the questions we have received regarding Lamb Weston is whether the faster-growing chains serve French Fries. Instead of the number of units, we track restaurant visitation by concept. Chicken and hamburger concepts continue to take share in the restaurant industry.
