GMCR » Topics » Decreased availability of high quality Arabica coffee beans could result in a decrease in revenue and jeopardize our Companys ability to maintain or expand our business.

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

Decreased availability of high quality Arabica coffee beans could result in a decrease in revenue and jeopardize our Company’s ability to maintain or expand our business.

While production of commercial grade coffee is on the rise, many industry experts are concerned about the ability of specialty coffee production to keep pace with demand. Arabica coffee beans of the quality we purchase are not readily available on the commodity markets. We depend on our relationships with coffee brokers, exporters and growers for the supply of our primary raw material, high quality Arabica coffee beans. In particular, the supply of Fair Trade Certified™ coffees is limited. We may not be able to purchase enough Fair Trade Certified™ coffees to satisfy the rapidly increasing demand for such coffees, which could impact our revenue growth. Furthermore, a worldwide supply shortage of the high quality Arabica coffee beans we purchase could have a material adverse effect on our business.

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