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Equity Bottom-Up

Swiss Water Decaffeinated Coffee / Equity Bottom-Up

<ul>
<li>Trade publications are reporting that coffee prices have reached record levels, a trend we have noted in prior reports.</li>
<li>Coffee price increases reflect a variety of factors including weather related crop conditions, distribution and logistics disruptions and expected imposition of tariffs.</li>
<li>According to Coffee Intelligence, the Coffee C futures contract, which is the global benchmark for Arabica coffee, recently reached their highest levels since the early 1970s.</li>
</ul>


Trade publications are reporting that coffee prices have reached record levels, a trend we have noted in prior reports.
Coffee price increases reflect a variety of factors including weather related crop conditions, distribution and logistics disruptions and expected imposition of tariffs.
According to Coffee Intelligence, the Coffee C futures contract, which is the global benchmark for Arabica coffee, recently reached their highest levels since the early 1970s.


SWP.TO: Expect Inventory Position Helps SWP Support Customers Amid Impact of Coffee Price Increases

<ul>
<li>SWP has built up its inventory in key locations to ensure customer deliveries.</li>
<li>SWP also strengthened its balance sheet with the complete repayment of $15.9m of debentures with warrants.</li>
<li>The company remains focused on optimizing performance and optimizing working capital &amp; financial flexibility to remain well-positioned and responsive to customers.</li>
</ul>


SWP has built up its inventory in key locations to ensure customer deliveries.
SWP also strengthened its balance sheet with the complete repayment of $15.9m of debentures with warrants.
The company remains focused on optimizing performance and optimizing working capital &amp; financial flexibility to remain well-positioned and responsive to customers.


Swiss Water Decaffeinated Coffee Inc. - Optimizing Operational Efficiency, Financial Flexibility

<ul>
<li>We believe rising coffee prices potentially could have a temporary negative impact on consumer demand &amp; constrain SWP's sales in the short run.</li>
<li>If so, we view the impact as short-term.</li>
<li>Industry trade publications report that the industry historically has been resilient in "periods of volatility" and we believe the growing popularity of coffee - particularly the decaf segment and that of specialty coffee beverages - support continued positive trends for SWP over time.</li>
</ul>


We believe rising coffee prices potentially could have a temporary negative impact on consumer demand &amp; constrain SWP's sales in the short run.
If so, we view the impact as short-term.
Industry trade publications report that the industry historically has been resilient in "periods of volatility" and we believe the growing popularity of coffee - particularly the decaf segment and that of specialty coffee beverages - support continued positive trends for SWP over time.


SWP.TO: Coffee Prices Rising on Poor Crops, Expected Tariffs

<ul>
<li>With consumption of decaffeinated coffee rising at a faster pace than that of the overall coffee beverage category, we expect substantial growth opportunities for Swiss Water.</li>
<li>In our view, SWP's natural decaffeination process is a key factor that helps drive demand for its coffee, particularly given the positive tailwind from coffee consumption trends.</li>
<li>We note, however, that rising coffee futures prices potentially signal that coffee prices will rise.</li>
</ul>


With consumption of decaffeinated coffee rising at a faster pace than that of the overall coffee beverage category, we expect substantial growth opportunities for Swiss Water.
In our view, SWP's natural decaffeination process is a key factor that helps drive demand for its coffee, particularly given the positive tailwind from coffee consumption trends.
We note, however, that rising coffee futures prices potentially signal that coffee prices will rise.


SWP.TO: Industry Outlook Shows Expected Catalysts for Swiss Water Growth Continuing

<ul>
<li>Consumption of decaffeinated coffee is rising and outpacing the expansion of the overall coffee beverage category, yet still represents only about 15% and 12%, respectively, of total coffee consumption in the U.S. and Western Europe.</li>
<li>This implies substantial growth prospects for Swiss Water, we believe, as sales of decaffeinated coffee continue to increase and as consumers' demand for natural food &amp; beverages and premium coffees continues to rise.</li>
<li>We believe the company's natural decaffeinated process is a key factor that could drive demand for Swiss Water decaffeinated coffee within the category and which has a positive tailwind from coffee consumption trends.</li>
</ul>


Consumption of decaffeinated coffee is rising and outpacing the expansion of the overall coffee beverage category, yet still represents only about 15% and 12%, respectively, of total coffee consumption in the U.S. and Western Europe.
This implies substantial growth prospects for Swiss Water, we believe, as sales of decaffeinated coffee continue to increase and as consumers' demand for natural food &amp; beverages and premium coffees continues to rise.
We believe the company's natural decaffeinated process is a key factor that could drive demand for Swiss Water decaffeinated coffee within the category and which has a positive tailwind from coffee consumption trends.


SWSSF: Benefitting From Rising Demand for Decaffeinated Coffee & Natural Beverages

Canada

Swiss Water Decaffeinated Coffee Inc. manufactures non alcoholic beverages. The Company offers coffee. Swiss Water Decaffeinated Coffee serves customers in Canada.

Swiss Water Decaffeinated Coffee (SWSSF US)

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Swiss Water Decaffeinated Coffee (SWSSF US)

SWP.TO: Expect Inventory Position Helps SWP Support Customers Amid Impact of Coffee Price Increases

Coffee price increases reflect a variety of factors including weather related crop conditions, distribution and logistics disruptions and expected...

Zacks Small Cap Research

Swiss Water Decaffeinated Coffee Inc. - Optimizing Operational Efficiency, Financial Flexibility

The company remains focused on optimizing performance and optimizing working capital & financial flexibility to remain well-positioned and...

Zacks Small Cap Research

SWP.TO: Coffee Prices Rising on Poor Crops, Expected Tariffs

We believe rising coffee prices potentially could have a temporary negative impact on consumer demand & constrain SWP's sales in the short run.

Zacks Small Cap Research

SWP.TO: Industry Outlook Shows Expected Catalysts for Swiss Water Growth Continuing

With consumption of decaffeinated coffee rising at a faster pace than that of the overall coffee beverage category, we expect substantial growth...

Zacks Small Cap Research

SWSSF: Benefitting From Rising Demand for Decaffeinated Coffee & Natural Beverages

We believe the company's natural decaffeinated process is a key factor that could drive demand for Swiss Water decaffeinated coffee within the...

Zacks Small Cap Research

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