10 Best Coffee Stocks To Buy According to Hedge Funds

6. The J. M. Smucker Company (NYSE:SJM)

Number of Hedge Fund Holders: 30

The J. M. Smucker Company (NYSE:SJM) is an American manufacturer of food and beverage products. The firm has a portfolio of leading brands across coffee, dog snacks, cat food, peanut butter, fruit spreads, frozen handheld, and sweet baked goods among others.

The firm leads the U.S. at-home retail coffee category with iconic and emerging brands such as Folgers, Dunkin’,  and Café Bustelo. More Americans tend to start their day with a cup of coffee at home from a Smucker coffee brand than any other company. The firm offers products to meet consumers’ taste preferences, increasingly for darker, premium roasts, and convenience needs, including one-cup and ready-to-drink solutions.

Café Bustelo recently introduced the Café Bustelo Espresso Style Iced Coffee Beverages, the brand’s first-ever multi-serve product made to be enjoyed cold, thereby bringing the tradition of tits beloved espresso style coffee to the refrigerated aisle for the first time in its 96 years of history. This was after the brand noticed many of its coffee customers reaching more and more for iced coffee while wanting the iconic flavor of Café Bustelo’s espresso style roasts. Thus, accessibility to Café Bustelo’s coffee to consumers across the U.S. is currently being driven through geographic and format expansion.

The firm’s US Retail Coffee segment remained robust in the second quarter of its 2025 fiscal year. Net sales increased 3% as compared to the prior year period. Net price realization increased net sales by 3 percentage points, mainly driven by higher net pricing for mainstream roast and ground and instant coffee. The overall quarter witnessed organic net sales and earnings growth above the firm’s expectations with strength from the Café Bustelo, Uncrustables, Meow Mix, and Jif brands.