Coffee Retailers on Watch Following Offshore Sumatra Earthquake (SBUX) (GMCR) (DNKN)

April 11, 2012 7:12 AM EDT
Coffee roasters and retailers on watch Wednesday following the large earthquake which hit off the coast of Sumatra earlier in the day.

According to the USGS, the earthquake was 8.7 magnitude, though other reports have that number lessened to an 8.2 reading.

No reports of tsunamis have surfaced.

Data has Indonesia being the fourth-largest coffee producer in the world, with figures of the region producing 420,000 metric tons as of 2007.

The disruption may not be huge, but with coffee prices hovering at all-time highs, any adverse outcome (flooding) will crimp margins even further. Stocks to watch include: Starbucks Corp. (Nasdaq: SBUX), Green Mountain (Nasdaq: GMCR), Dunkin' Brands (NYSE: DNKN), Caribou Coffee (Nasdaq: CBOU), Coffee Holding (Nasdaq: JVA), Peet's Coffee & Tea (Nasdaq: PEET), and Farmer Bros (Nasdaq: FARM).

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