The Kraft Heinz Company (NASDAQ:KHC) , one of the leading global food and beverage companies, recently introduced a new line of coffee called Special Reserve under its brand Gevalia Kaffe.
Priced at $6.99, Special Reserve includes four premium coffee varieties of Costa Rica, Guatemala, Kenya and Papua New Guinea. Notably, Special Reserve coffees are 100% Arabica, single-origin coffees and each is sourced uniquely from its respective country.
Costa Rica Coarse Ground is a medium-bodied coffee that has fruit and citrus undertones to its dark roast. Guatemala Coarse Ground is also a medium-bodied cup of coffee that offers earthy, smoky notes with a hint of cocoa. Both Costa Rica Coarse Ground and Guatemala Coarse Ground are best for French Press brewing.
On the other hand, Kenya Fine Ground is an intensely-flavored coffee that incorporates a balance of acidity and wine-esque undertones. This coffee is perfect for specialty brewing. Papua New Guinea Fine Ground is a complex rare coffee that has a delicate sweet flavor with a hint of acidity.
Notably, coffee is a big market, worth about $85 billion worldwide, and is growing at nearly 6% a year. Thus, we believe the introduction of the Special Reserve line of premium coffee will help Kraft Heinz to capitalize on the strong demand for premium coffee and contribute to the company’s top line.
Kraft Heinz, formed last year, was the result of the merger between packaged food company, Kraft Foods and ketchup maker, H.J. Heinz Company. Previously known as H.J. Heinz Holding Corporation, the company changed its name to Kraft Heinz post the completion of the merger on Jul 2, 2015. The company started trading on Jul 6.
Kraft Heinz has a Zacks Rank #2 (Buy).
Stocks to Consider
Some better-ranked stocks in the consumer staples sector include Primo Water Corp. (NASDAQ:PRMW) , Constellation Brands Inc. (NYSE:STZ) and Craft Brew Alliance, Inc. (NASDAQ:BREW) . All the three companies carry a Zacks Rank #2 (Buy).
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