QUOTE AND NEWS
Market Intelligence Center  Mar 18  Comment 
Green Mountain Coffee Roasters Inc. (GMCR) traded between $123.38 and $125.36 before closing at $124.51 Tuesday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s algorithms have picked a May. '15 $120.00...
Market Intelligence Center  Mar 12  Comment 
Green Mountain Coffee Roasters Inc. (GMCR) traded between $123.87 and $127.98 before closing at $124.62 Wednesday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s algorithms have picked a May. '15 $120.00...
Forbes  Mar 11  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Molson Coors Brewing Co. (NYSE: TAP), where a total volume of 32,200 contracts has been traded thus far today, a contract volume which...
Benzinga  Mar 9  Comment 
Keurig Green Mountain Inc (NASDAQ: GMCR) will hold its own in the increasingly competitive market for single-cup hot beverage brewing, while its nascent cold drink machine will soon capture a major share of the soft-drink market, an analyst...
Motley Fool  Mar 7  Comment 
You would think his biggest regret was selling his share of the company for $50,000, but you would be mistaken.
Benzinga  Mar 2  Comment 
Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announces the addition of the Keurig® 2.0 K200 series to...
TheStreet.com  Feb 23  Comment 
NEW YORK (TheStreet) -- Keurig Green Mountain shares are up 0.98% to $124.06 in market trading on Monday after the specialty coffeemaker announced that it will buy back about half of Italian coffee maker Luigi Lavazza SpA's stake in the...
Forbes  Feb 10  Comment 
In early trading on Tuesday, shares of Micron Technology (MU) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.4%.  Year to date, Micron Technology has lost about 15.5% of its value.
Forbes  Feb 5  Comment 
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Keurig Green Mountain Inc (NASD: GMCR), where a total volume of 65,400 contracts has been traded thus far today, a contract volume...
TheStreet.com  Feb 5  Comment 
NEW YORK (TheStreet) -- Shares of Keurig Green Mountain are falling, lower by 3.69% to $116.73 in late morning trading Thursday on heavy volume, after the coffee company had its price target slashed by analysts at Buckingham Research and CLSA...




 

Green Mountain Coffee Roasters (NYSE: GMCR), headquartered in Waterbury, Vermont, provides premium, specialty coffees and coffee products. GMCR operates in two business segments: Green Mountain Coffee Roasters (ground coffee and coffee beans) and Keurig (the "one-cup coffee brewer"). In the past fiscal year, the firm has profited from the increased popularity to its Keurig business. However, coffee bean prices, the primary commodity input for GMCR, rose 72% in 2010,[1] which caused the firm's profit margin to decline 15%.[2]


Business Overview

In the past fiscal year, the success of the Keurig brand has driven GMCR sales, as the firm saw an 81% sales growth in its Keurig products.[2] Coffee prices have been surging since January 2010, causing GMCR profit margins to further tighten.

Trends and Forces

GMCR Profit Margins Pressured by Coffee Bean Prices

Green Mountain Coffee Roaster has a high dependence to its primary raw material: coffee beans. As the price of coffee beans, typically imported from Latin and South America, Southeast Asia, and Africa, rises, GMCR needs to pass these costs to consumers or create a more efficient production process to avoid lower profit margins.

Keurig's Niche Product Drives New Revenue Streams

Green Mountain Coffee owns the Keurig one-cup coffee maker business -- a niche product in an industry traditionally composed of coffee pot brewers and cafes. As the one-cup style of coffee making gains popularity, the firm can leverage its brand recognition to expand the business. For example, when GMCR announced it will sell Starbucks (SBUX) coffee in Keurig's patented K-Cup, the firm's stock increased 41%.[3]

Competition

GMCR's competitors include:

  • Starbucks (SBUX): The world's top coffee seller by revenue, Starbucks also sells in-house brewed coffee and other food products.
  • Peet's Coffee & Tea (PEET): Similarly to Starbucks, PEET focuses on its in-house brewed coffee.
  • Dunkin' Donuts (privately held): Sells coffee and tea products, but doughnuts and food products as well.
  • The Folger Coffee Company: Like GMCR, Folger sells coffee beans and ground coffee to be brewed at home.

References

  1. Commodity Online, "Global coffee prices to go high on 2011," 12/23/2010
  2. 2.0 2.1 GMCR 2010 10-k
  3. Seeking Alpha, "A Nasty Week and a Highly Caffeinated Short," 03/11/2011
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