Green Mountain Coffee Roasters (GMCR)

GMCR

GMCR segment net sales for the 2007 YTD period were $180.8 million (including $7.6 million of inter-company K-cup sales) as compared to $156.5 million reported in the 2006 YTD period. The GMCR segment K-Cup^® shipments of coffee and tea increased 41% over the as-adjusted YTD prior period.

The consumer direct channel grew 38% in coffee pounds shipped. The majority of this growth was related to the sales of K-Cups^® to consumers for use with Keurig^® Single-Cup Brewers. The resellers channel increased 147% primarily due to K-Cup sales to Keurig, for their developing retail and consumer channels. The 20% increase in coffee pounds shipped in the OCS channel continues to demonstrate the appeal and success of the Keurig single-cup brewing system. The food service channel increased 16% in coffee pounds shipped with the majority of this increase driven by sales to existing customers, including McDonald’s restaurants in New England and Albany, New York.

In the convenience store channel, coffee pounds shipped were relatively flat increasing 1%. The supermarket channel coffee pounds shipped decreased 1% with increased coffee pounds from new customer acquisitions not fully offsetting certain declines in some other supermarket customers due to increased competition in the specialty coffee category in this channel.

GMCR

GMCR segment net sales for the 2007 YTD period were $120.5 million (including $5.0 million of intercompany K-cup sales) as compared to $110.6 million reported in the 2006 YTD period. Net sales for the GMCR segment in the YTD 2007 period increased 17.2% over the as-adjusted YTD prior period net sales of $102.8 million. The GMCR segment K-Cup^® shipments of coffee and tea increased 39% over the as-adjusted YTD prior period.

The consumer direct channel grew 68.3% in coffee pounds shipped. The majority of this growth was related to the sales of K-Cups^® to consumers for use with Keurig^® Single-Cup Brewers, as well as K-Cup sales to Keurig, for their developing retail and consumer channels. The 21.7% increase in coffee pounds shipped in the OCS channel continues to demonstrate the appeal and success of the Keurig single-cup brewing system. The food service channel increased 16.8% in coffee pounds shipped with the majority of this increase driven by continued strong sales to existing customers, including McDonald’s restaurants in New England and Albany, New York.

In the convenience store channel, coffee pounds shipped were relatively flat, decreasing 0.8%. The supermarket channel coffee pounds shipped decreased 3.3% with increased coffee pounds from new customer acquisitions not fully offsetting certain declines in some other supermarket customers due to increased competition in the specialty coffee category in this channel.

We experienced a 15% gain in shipments of certified Fair Trade and organic coffees, including co-branded Newman’s Own^® Organics coffees. Certified Fair Trade and organic coffees represented 28% of total volume shipped.

GMCR

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