This excerpt taken from the GMCR 10-K filed Dec 13, 2007.
(Unaudited Pounds in Thousands)
Note: 2006 was a 53-week fiscal year while 2007 is a 52-week fiscal year.
Note: Certain prior year customer channel classifications were reclassified to conform to current year classifications.
Note: The Resellers channel includes shipments of Green Mountain Coffee manufactured products to Keurig Inc. and other resellers for sales to either the retail channel such as department stores or sales via internet websites.
Net sales for the GMC segment for fiscal 2007 were $242.0 million (including $11.5 million of inter-company K-Cup sales), up 16.6% from $207.6 million (including $1.5 million of inter-company sales) reported in the 2006 fiscal period. The GMC segment K-Cup shipments of coffee, cocoa and tea increased 41% over the fiscal 2006 period.
The OCS and the consumer direct channels grew 19.1% and 35.5% in coffee pounds shipped, respectively. The majority of the growth in these two channels was related to the sales of K-Cups for use with Keurig Single-Cup Brewers. The resellers channel increased 85.9% primarily due to K-Cup sales to Keurig, for their developing retail and consumer channels.
The food service channel increased 9.4% in coffee pounds shipped with the majority of this increase driven by sales to existing customers, including McDonalds restaurants in New England and Albany, New York. The supermarkets coffee pounds shipped increased 2.5% with increased coffee pounds from new customer acquisitions and existing customers. In the convenience store channel, coffee pounds shipped decreased 3.8% due to overall lower demand from existing customers.
For fiscal 2007, the difference between the 16.6% sales growth rate and the 9.5% pounds shipped growth rate primarily reflects several factors including (i) the increase in coffee K-Cups as a percentage of sales, which sell at a higher price per pound than our other products, and (ii) the growth of the Companys sales of Celestial Seasonings® Teas and hot cocoa in K-Cups, which are not part of the coffee pounds shipped data.
The OCS channel increased coffee pounds shipped by 28.9% due to strong K-Cup sales to our key customers driven by continued penetration of the Keurig Single-Cup Brewers in small offices. The consumer direct channel grew over 70% in dollar sales and 44.8% in coffee pounds shipped, due primarily to the sales of K-Cups to consumers for use with Keurig Single-Cup
Brewers, as well as K-Cup sales to Keurig, for its developing retail and consumer channels. The growth in coffee pounds shipped was strongest in the food service channel, up 62.3% over fiscal 2005, primarily due to the November 1st roll-out to over 650 McDonalds restaurants in New England and New York. The supermarket channel increased its pounds shipped by 11.1% over fiscal 2005, due primarily to the increase in sales of our Fair Trade Certified and Organic product line including our co-branded Newmans Own Organics products to new and existing customers. The convenience store channel increased pounds shipped by 8.2% over fiscal 2005 led by sales to McLane Company, Inc. (McLane), the distributor for ExxonMobil.
For fiscal 2006, the difference between the 28.5% sales growth rate and the 23.8% pounds shipped growth rate primarily reflects several factors including (i) the increase in coffee K-Cups as a percentage of sales, which sell at a higher price per pound than our other products, (ii) our price increases in the second quarter of 2005 which contributed to net sales growth in the first two quarters of fiscal 2006 and (iii) the growth of the Companys sales of Celestial Seasonings® Teas in K-Cups, which are not part of the coffee pounds shipped data.