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Van Houtte will likely be expanding into geographic markets in which it has no real previous operating experience, and thus there can be no assurance that such diversification will translate into profitable operations. Vietnam, for instance, is considered the fourth-largest coffee producer, but the quality of its coffee is questionable. Weather conditions in the regions where coffee grows can also affect the supply of inventory and its quality. Furthermore, unseasonably warmer weather in consumer markets typically lead to reduced coffee consumption, and thus reduced sales.
There are also social and political factors (general economic conditions) that are involved with the processing and distribution of coffee beans...
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