GMCR » Topics » Because our Company has essentially all of its single cup brewers manufactured from a single supplier in China, a significant disruption in the operation of this supplier or political unrest in China could potentially disrupt our Keurig business.

This excerpt taken from the GMCR 10-K filed Dec 14, 2006.

Because our Company has essentially all of its single cup brewers manufactured from a single supplier in China, a significant disruption in the operation of this supplier or political unrest in China could potentially disrupt our Keurig business.

We have only one supplier of single cup brewers. Any disruption in production or inability of our supplier to produce adequate quantities to meet our needs, whether as a result of a natural disaster or other causes, could significantly impair our ability to operate our Keurig business on a day-to-day basis. Furthermore, our single supplier of single cup brewers is located in China. This exposes us to the possibility of product supply disruption and increased costs in the event of changes in the policies of the Chinese government, political unrest or unstable economic conditions in China or developments in the U.S. that are adverse to trade, including enactment of protectionist legislation.

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