Green Mountain Coffee Roasters (GMCR)

The Company’s financial performance is highly dependent upon the sales of K-Cup portion packs.

A significant percentage of our total revenue has increasingly been attributable to royalties and other revenue from sales of K-Cups for use with the Company’s Keurig single-cup brewing systems. In fiscal 2008, total consolidated net sales of K-Cups, Keurig brewers and royalties earned upon shipment of K-Cups by licensed roasters represent approximately 70% of consolidated net sales of the Company. Continued acceptance of K-Cup single brewer systems and sales of K-Cups to our installed base of brewers is a significant factor in the Company’s growth plans. Any substantial or sustained decline in the acceptance of K-Cups could materially adversely affect the Company’s business and financial results.

The Company’s financial performance is highly dependent upon the sales of K-Cup portion packs.

Since our acquisition of Keurig, Incorporated in 2006, a significant percentage of our total revenue has increasingly been attributable to royalties and other revenue from sales of K-Cups for use with the Company’s Keurig single-cup brewing systems. In fiscal 2007, the GMC segment K-Cup shipments of coffee, hot cocoa and tea increased 41% over the fiscal 2006 period. Continued acceptance of K-Cup single brewer systems is a significant factor in the Company’s growth plans. Any substantial or sustained decline in the acceptance of K-Cups could materially adversely affect the Company’s business and financial results.