GMCR » Topics » A significant interruption in the operation of our roasting facilities, manufacturing capabilities or distribution facilities could potentially disrupt our operations.

These excerpts taken from the GMCR 10-K filed Dec 11, 2008.

A significant interruption in the operation of our roasting facilities, manufacturing capabilities or distribution facilities could potentially disrupt our operations.

We currently have only one coffee roasting facility. We will have additional roasting facilities when we are able to begin roasting at our Knoxville, Tennessee facility and at such time as when the Tully’s acquisition closes. A significant interruption in the operation of our current roasting facility, whether as a result of a natural disaster or other causes, could significantly impair our ability to operate our business on a day-to-day basis.

In addition, we and other licensed coffee roasters manufacture the K-Cups sold for use with our single-cup brewer systems. We manufacture K-Cups at our Vermont facilities and at our Knoxville, Tennessee facility and any significant disruption in our or our licensees ability to manufacture adequate quantities of K-Cups to meet our needs, whether as a result of a natural disaster or other causes, could adversely affect the Company’s business and financial results. We currently have three distribution facilities, one located adjacent to our roasting facility in Waterbury, Vermont, an additional distribution facility located in Essex, Vermont and our facility in Knoxville, Tennessee. Any disruption to our distribution facilities could significantly impair our ability to operate our business. In addition, because our coffee roasting and primary distribution facilities are located in Vermont, our ability to ship coffee and receive shipments or raw materials could be adversely affected during winter months as a result of severe winter conditions and storms.

 

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A significant interruption in the operation of our roasting facilities, manufacturing capabilities or distribution facilities could
potentially disrupt our operations.

We currently have only one coffee roasting facility. We will have additional roasting facilities when we are able
to begin roasting at our Knoxville, Tennessee facility and at such time as when the Tully’s acquisition closes. A significant interruption in the operation of our current roasting facility, whether as a result of a natural disaster or other
causes, could significantly impair our ability to operate our business on a day-to-day basis.

In addition, we and other licensed coffee roasters
manufacture the K-Cups sold for use with our single-cup brewer systems. We manufacture K-Cups at our Vermont facilities and at our Knoxville, Tennessee facility and any significant disruption in our or our licensees ability to manufacture adequate
quantities of K-Cups to meet our needs, whether as a result of a natural disaster or other causes, could adversely affect the Company’s business and financial results. We currently have three distribution facilities, one located adjacent to our
roasting facility in Waterbury, Vermont, an additional distribution facility located in Essex, Vermont and our facility in Knoxville, Tennessee. Any disruption to our distribution facilities could significantly impair our ability to operate our
business. In addition, because our coffee roasting and primary distribution facilities are located in Vermont, our ability to ship coffee and receive shipments or raw materials could be adversely affected during winter months as a result of severe
winter conditions and storms.

 


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EXCERPTS ON THIS PAGE:

10-K (2 sections)
Dec 11, 2008
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