SeekingAlpha  Aug 18  Comment 
By Seth Golden: On August 6th, Keurig Green Mountain (NASDAQ:GMCR) released its Q3 2014 Earnings report which was met with a mixed reaction from investors as the stock quickly dove after hours, but quickly rebounded the next trading day to remain...
SeekingAlpha  Aug 17  Comment 
By Andrew Sachais: Keurig Green Mountain (NASDAQ:GMCR), the maker of Keurig one-cup coffee brewers, may be negatively affected by pricing pressure in 2015, even as the company plans on rolling out a new machine later this year. The company said...
SeekingAlpha  Aug 14  Comment 
By Dana Skold: Green Mountain's Strong Quarter Investors in Keurig Green Mountain (NASDAQ:GMCR) should be pleased with the coffee roaster's excellent quarterly results. Revenues rose while gross costs and SG&A expenses stayed constant: GMCR...
TheStreet.com  Aug 14  Comment 
NEW YORK (TheStreet) -- Keurig Green Mountain shares are climbing, up 0.7% to $114.86 in early market trading on Thursday, after the company announced that it will raise its coffee prices by 9% in November in an effort to offset the rising cost...
Market Intelligence Center  Aug 11  Comment 
Friday’s trading in Green Mountain Coffee Roasters Inc. (GMCR) gives options traders an opportunity for a 5.03% return. By selling the Oct. '14 $110.00 call and buying the Jan. '16 call at the $40.00 level for a net debit of $66.65, traders will...
Benzinga  Aug 7  Comment 
Keurig Green Mountain's (NASDAQ: GMCR) 20 percent gain in second-quarter income was helped a lot by lower coffee and selling costs, both of which are soon expected to reverse themselves, an analyst said Thursday. Sales of the company's coffee...
SeekingAlpha  Aug 7  Comment 
By Seeking Profits: Shares of Keurig Green Mountain (NASDAQ:GMCR) have been absolutely fantastic performers in 2014 as they are up 56%. Much of the rally has been due to Coca-Cola's (NYSE:KO) strategic partnership with the company to offer soda on...
SeekingAlpha  Aug 7  Comment 
Keurig Green Mountain Inc (NASDAQ:GMCR) Q3 2014 Earnings Conference Call August 06, 2014 05:00 pm ET Executives Suzanne DuLong - Investor Relations Brian Kelley - President, Chief Executive Officer, Director Fran Rathke - Chief...
Benzinga  Aug 6  Comment 
Keurig Green Mountain (NASDAQ: GMCR) fiscal third-quarter earnings beat estimates, but disappointing guidance send the shares down in the extended session Wednesday. Sales of the company's coffee and coffee makers grew six percent in the...
TheStreet.com  Aug 6  Comment 
NEW YORK (TheStreet) -- Keurig Green Mountain  fell in after-hours trading Wednesday after the coffee company reported third-quarter revenue and issued guidance that came up short of analysts' expectations. The company reported adjusted...


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]


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.


  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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