Green Mountain Coffee Roasters (GMCR)

GMC

GMC segment net sales increased by $28.0 million or 36%, to $105.8 million in the first quarter of fiscal 2009 (including $14.2 million of inter-company K-Cup sales) as compared to $77.8 million reported in the first quarter of fiscal 2008 (including $5.6 million of inter-company K-Cup sales). The primary driver for the increase in sales is the continued growth in K-Cup sales. Coffee, tea and hot cocoa pounds shipped by the GMC segment increased 14% over the prior year period.

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 the GMC segment. 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.

GMC

GMC segment net sales increased to $235.5 million, or 30%, in the 2008 YTD period (including $21.4 million of inter-company K-cup sales) as compared to $180.8 million reported in the prior YTD period (including $7.6 million of inter-company K-cup sales). Coffee, tea and hot cocoa pounds shipped increased to 23.9 million pounds, or 17% as compared to 20.4 million pounds in the prior YTD period. The difference between the 30% sales growth rate and the 17% coffee, tea and hot cocoa pounds shipped growth rate is primarily due to the increase in K-Cups as a percentage of sales, which sell at a higher price per pound than our other products.

The GMC segment K-Cup shipments of coffee, tea and hot cocoa increased approximately 59% over the prior YTD period. The Resellers channel grew 139% in pounds shipped. The majority of Resellers channel growth was related to the sales of K-Cups to Keurig, for their retail and consumer channels. The 51% increase in coffee pounds shipped in the Consumer Direct channel and the 26% increase in coffee pounds shipped in the Office Coffee Service channel were also primarily driven by the increased sales of K-Cups.

GMC

GMC segment net sales increased to $158.9 million, or 32%, in the 2008 YTD period (including $17.0 million of inter-company K-cup sales) as compared to $120.5 million reported in the prior YTD period (including $5.0 million of inter-company K-cup sales). Coffee, tea and hot cocoa pounds shipped increased to 16.3 million pounds, or 20% as compared to 13.6 million pounds in the prior YTD period. The difference between the 32% sales growth rate and the 20% coffee, tea and hot cocoa pounds shipped growth rate is primarily due to the increase in K-Cups as a percentage of sales, which sell at a higher price per pound than our other products.

The GMC segment K-Cup shipments of coffee, tea and hot cocoa increased approximately 64% over the prior YTD period. The Resellers channel grew 183% in pounds shipped. The majority of Resellers channel growth was related to the sales of K-Cups to Keurig, for their retail and consumer channels. The 54% increase in coffee pounds shipped in the Consumer Direct channel and the 26% increase in coffee pounds shipped in the Office Coffee Service channel were also primarily driven by the increased sales of K-Cups.

Shipments of Fair Trade Certified™ and Fair Trade Certified organic lines, including Newman’s Own Organics, were up 17% in the 2008 YTD period as compared to the prior YTD period. Fair Trade Certified and Fair Trade Certified organic coffees now represent approximately 28% of the coffee pounds shipped by the GMC segment.