Kopi Luwak is also known as Civet Coffee. It is quite literally made of coffee beans in Indonesia that have passed through the digestive tract of a Civet. Um, yes. Pooped out coffee beans.
Apparently, besides being quite rare, they are also quite tasty when brewed into coffee. A pound of Civet coffee beans is approximately $227. And you thought Starbucks was expensive!
The New York Times has a pretty amusing and educational article on the subject. Wikipedia does not disappoint: there is an extensive article on the subject with links to other sources.