Green Mountain Coffee Roasters (GMCR)

GMC Segment

Fiscal 2008

Net sales for the GMC segment for fiscal 2008 were $320.1 million (including $34.2 million of inter-company K-Cup sales), up 32% from $242.0 million (including $11.5 million of inter-company sales) reported in the 2007 fiscal period. The primary driver for the increase in sales is the continued growth in K-Cup sales. The GMC segment K-Cup shipments of coffee, hot cocoa and tea increased 61% in 2008 over the fiscal 2007 period. Coffee, tea and hot cocoa pounds shipped by the GMC segment increased 16% in 2008 as compared to fiscal 2007.

The difference between the sales growth rate and 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. In May 2008, a price increase was implemented that averaged 8 to 12 percent across all product types. This increase contributed $9.3 million, or an approximate 4% increase in GMC net sales in fiscal 2008 over the prior year.

Fiscal 2007

Net sales for the GMC segment for fiscal 2007 were $242.0 million (including $11.5 million of inter-company K-Cup sales), up 17% from $207.6 million (including $1.5 million of inter-company sales) reported in the prior year period. The primary driver for the increase in sales was the growth in K-Cup sales. The GMC segment K-Cup shipments of coffee, hot cocoa and tea increased 41% in 2007 over the fiscal 2006 period. Coffee, tea and hot cocoa pounds shipped by the GMC segment during fiscal 2007 increased 10% as compared the prior year period.

The difference between the sales growth rate and 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.

21

Table of Contents

GMC Segment

Annual growth in coffee pounds shipped by GMC is summarized in the table below:

23

Table of Contents