Green Mountain Coffee Roasters (GMCR)

For the Keurig business unit, net sales for the fourth quarter of fiscal 2009, after the elimination of inter-company sales, were $122.9 million, up 95% from net sales of $63.2 million in the fourth quarter of fiscal 2008. About half of the increase in Keurig’s net sales this past quarter was due to the 121% increase in K-Cup sales primarily to retailers as well as to consumers from Keurig.com. Dollar net sales of At Home Single-Cup brewers and accessories contributed over 40% of the increase in total Keurig business unit net sales this quarter. In addition, royalty income from the sale of K-Cups^® from third party licensed roasters increased approximately $2.9 million over last year’s fourth fiscal quarter and totaled $9.9 million.

For the Specialty Coffee business unit (previously called the Green Mountain Coffee segment), net sales for the fourth quarter of fiscal 2009 grew 39% to $99.3 million, after the elimination of inter-company sales, as compared to $71.7 million reported in the fourth quarter of fiscal 2008. Dollar net sales growth was strongest in channels that benefit from sales of K-Cup portion packs including retail reseller, supermarket, consumer direct and office coffee channels. Coffee, tea and hot cocoa pounds shipped increased 47% this quarter over the prior period and totaled 12.1 million pounds. Fair Trade coffees represented 30% percent of coffee pounds shipped.

For the Keurig business unit, net sales for the third quarter of fiscal 2009, after the elimination of inter-company sales, were $90.1 million, up 97% from net sales of $45.8 million in the third quarter of fiscal 2008. About half of the increase in Keurig’s net sales this past quarter was due to the 112% increase in K-Cup sales to retailers and to consumers from Keurig.com. Dollar net sales of At Home brewers and accessories contributed approximately one-third of the increase in total Keurig business unit net sales this quarter. In addition, royalty income from the sale of K-Cups^® from third party licensed roasters increased approximately $3 million over last year’s third fiscal quarter and totaled $9 million. Further detail on shipments of Keurig brewers and K-Cup portion packs is provided in the chart accompanying this press release.

For the Specialty Coffee business unit (previously called the Green Mountain Coffee segment), net sales for the third quarter of fiscal 2009 grew 39% to $100.4 million, after the elimination of inter-company sales, as compared to $72.4 million reported in the third quarter of fiscal 2008. Dollar net sales growth was strongest in channels that benefit from sales of K-Cup portion packs including retail reseller, supermarket, consumer direct and office coffee channels. Coffee, tea and hot cocoa pounds shipped increased 40% this quarter over the prior period and totaled 10.9 million pounds.

Sales related to the Tully’s brand represented approximately 5.5% of the 61% increase in consolidated net sales, which are included in the Company’s results for the first time.

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The Keurig business unit net sales, prior to the elimination of inter-company sales, for the second quarter of fiscal 2009 were $119.8 million, up 97% from net sales of $60.7 million in the second quarter of fiscal 2008. About half of the increase in Keurig’s net sales this past quarter was due to the 129% increase in K-Cup sales to retailers and from Keurig.com. Net sales of At Home brewers and accessories contributed approximately 30% of the increase in total Keurig business unit net sales this quarter. In addition, royalty income from the sale of K-Cups^® from all licensed roasters increased approximately $12 million or 85% over last year’s second fiscal quarter. Keurig announced a royalty rate increase of a penny-per-K-Cup on all system-wide K-Cup portion packs that went into effect on August 1, 2008. Of the 97% increase in net sales in the just finished quarter, approximately 5 percentage points was due to the royalty increase. Further detail on shipments of Keurig brewers and K-Cup portion packs is provided in the chart accompanying this press release.

For the Specialty Coffee business unit (previously called the Green Mountain Coffee segment), net sales for the second quarter of fiscal 2009 grew 40% to $113.3 million, prior to the elimination of inter-company sales, as compared to $81.0 million reported in the second quarter of fiscal 2008. Dollar sales growth was strongest in channels that benefit from sales of K-Cup portion packs including retail reseller, supermarket, consumer direct and office coffee channels. Coffee, tea and hot cocoa pounds shipped increased 18.6% this quarter over the prior period and totaled 9.8 million pounds. This past quarter, Fair Trade Certified™ and organic coffees represented over 30% of total coffee pounds sold, up from about 26% in the prior year quarter. As previously announced, the Company increased prices in May 2008 by 8% to 12% on average across business channels and package types for coffee products sold by its Specialty Coffee business unit. Of the 40% increase in net sales in the just finished quarter, approximately 10 percentage points was due to the price increase taken in May 2008.

$17.6 million of inter-company Keurig business unit sales and $22.1 million of inter-company Specialty Coffee business unit sales were eliminated in the second quarter of fiscal 2009.

For the Green Mountain Coffee segment, net sales for the first quarter of fiscal 2009 grew 36% to $105.8 million, prior to the elimination of inter-company sales, as compared to $77.8 million reported in the first quarter of fiscal 2008. Dollar sales growth was strongest in channels that benefit from sales of Keurig K-Cup portion packs including retail reseller, supermarket and consumer direct channels. Coffee, tea and hot cocoa pounds shipped increased 14% this quarter over the prior period. This past quarter, Fair Trade Certified™ and organic coffees represented over 33% of total coffee pounds sold, up from about 30% in the prior year quarter. As previously announced, the Company increased prices in May 2008 by 8% to 12% on average across business channels and package types for coffee products sold by its Green Mountain Coffee segment because of rising green coffee costs and increases in prices of other raw materials, and higher energy and transportation costs. The net impact of the price increase in the first quarter of fiscal 2009 was an increase in net sales of approximately 11% over the prior year period.

For the Keurig segment, net sales (prior to the elimination of inter-company sales) included in the Company’s first quarter of fiscal 2009 were $120.9 million, up 89% from net sales of $63.8 million in the first quarter of fiscal 2008. This increase in sales was primarily due to higher At Home Single-Cup brewer and K-Cup sales and royalty income from the sales of K-Cups. Keurig announced a royalty rate increase of a penny on all system-wide K-Cup portion packs that went into effect on August 1, 2008. This increase contributed to an approximate 4% increase in Keurig segment’s first quarter net sales over the prior year. Further detail on shipments of Keurig brewers and K-Cup portion packs is provided in the chart accompanying this press release.

As part of the consolidation, $15.6 million of inter-company Keurig segment sales and $14.2 million of inter-company Green Mountain Coffee segment sales were eliminated in the first quarter of fiscal 2009.

For the Green Mountain Coffee segment, net sales for the fourth quarter of fiscal 2008 were up 38% to $84.5 million, prior to the elimination of inter-company sales, as compared to $61.2 million reported in the fourth quarter of fiscal 2007. Dollar sales growth was strongest in the channels that benefit from sales of the Keurig K-Cup portion packs including reseller, office coffee service (OCS), consumer direct and supermarket channels. Coffee, tea and hot cocoa pounds shipped increased 12% this quarter over the prior period. As previously announced, the Company increased prices in May 2008 by 8 to 12 percent on average across business channels and package types for coffee products sold by its Green Mountain Coffee division because of rising green coffee costs and increases in prices of other raw materials, and higher energy and transportation costs. The net impact of the price increase in the fourth quarter of fiscal 2008 was an increase in net sales of approximately 10% over the prior year period.

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For the Keurig segment, net sales (prior to the elimination of inter-company sales) included in the Company’s fourth quarter of fiscal 2008 were $74.6 million, up 75% from net sales of $42.6 million in the fourth fiscal quarter of 2007. This increase in sales was primarily due to higher K-Cup and brewer sales and royalty income from the sales of K-Cups. Keurig announced a royalty rate increase of a penny on all system-wide K-Cup portion packs that went into effect on August 1^st. This increase contributed to an approximate 4% increase in Keurig segment’s fourth quarter net sales over the prior year. Further detail on shipments of Keurig brewers and K-Cup portion packs is provided in the chart accompanying this press release.

As part of the consolidation, $11.4 million of inter-company Keurig segment sales and $12.8 million of inter-company Green Mountain Coffee segment sales were eliminated in the fourth quarter of fiscal 2008.