QUOTE AND NEWS
StreetInsider.com  Oct 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/SEC+Closes+Inquiry+into+Keurig+Green+Mountain+%28GMCR%29%3B+Takes+No+Enforcement+Action/9919226.html for the full story.
StreetInsider.com  Oct 7  Comment 
52-Week High: Lakeland Industries, Inc. (Nasdaq: LAKE) $10.74. Lakeland Industries gaining as imvestors could be responding to a CNBC video: "Ebola scare sends prepper kits flying off the shelves." In addition, Arenal Capital Partners LP sold...
Forbes  Oct 7  Comment 
In early trading on Tuesday, shares of Keurig Green Mountain (GMCR) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.3%.  Year to date, Keurig Green Mountain registers a 85.8% gain.
TheStreet.com  Oct 7  Comment 
NEW YORK (TheStreet) --a Goldman Sachs initiated coverage of Keurig Green Mountain Inc. aearlier today with a "buy" rating and a price target of $166. The firm said the company is on the cusp of a multi-year growth story. Shares of Keurig Green...
Motley Fool  Oct 4  Comment 
Keurig Green Mountain may have a legal problem with the protective nature of its new brewer.
Motley Fool  Oct 1  Comment 
Keurig Green Mountain is spending big bucks on stock buybacks. Here's what investors need to know.
SeekingAlpha  Sep 30  Comment 
By Lazarus Investment Partners: Author's Note: This article discusses a microcap stock. Please be advised of the risks associated with microcap stocks. The text of the interview is an abridged transcription of a conversation between Lazarus...
SeekingAlpha  Sep 25  Comment 
By Bill Maurer: One of the most volatile stocks of the last few years has been Keurig Green Mountain (NASDAQ:GMCR). The company, known for the single serve K-cup, has seen shares plummet and then rise back to new highs. As shares have recovered,...
SeekingAlpha  Sep 22  Comment 
By Options Calling: Keurig Green Mountain (NASDAQ:GMCR) is facing a worrying slowdown in topline growth. The company has gone from revenue growth of more than 90% to mid-teen levels (adjusted) in the space of just two years. GMCR Revenue...
SeekingAlpha  Sep 22  Comment 
By Amal Singh: Keurig Green Mountain (NASDAQ:GMCR) is trading near its 52-week highs. The company's stock is up 80% so far in 2014, driven by its smart strategies. In fact, investors seem to have strong faith in the company's prospects and...




 

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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