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Green Mountain Coffee Roasters, Inc. (GMCR) is engaged in the specialty coffee and coffee maker businesses.
The Company roasts Arabica bean coffees, including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and blends offered in K-Cup portion packs, whole bean and ground coffee selections, as well as other specialty beverages, including tea, hot apple cider and hot cocoa also offered in K-Cup portion packs. The Company operates in three segments: the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). On December 17, 2010, the Company acquired LJVH Holdings Inc. (Van Houtte). In October 3, 2011, the Company sold Van Houtte USA Holdings, Inc. to ARAMARK Refreshment Services, LLC.
The Company’s products include coffee, tea, other beverages, brewers, accessories and office coffee services. The Company does not own a tea brand, but has licensing agreements with Celestial Seasonings, Inc. (Celestial Seasonings branded teas and Perfect Iced Tea), R. C. Bigelow, Inc. (Bigelow branded teas), Starbucks Corporation (Tazo) and Associated British Foods plc (Twinings of London) for manufacturing, distribution, and sale of K-Cup portion packs. In addition to coffee and tea, the Company also produces and sells hot apple cider under its Green Mountain Naturals brand, cocoa and other dairy-based beverages under its Cafe Escapes brand, and during fiscal year ended September 24, 2011 (fiscal 2011), the Company started hot cocoa under the Swiss Miss brand in K-Cup portion packs. Under the Keurig brand name, the Company offers a variety of commercial and home use brewers for the Away-From- Home (AFH) channel and for the AH channel. The Company also offers a variety of accessories for the Keurig single-cup brewing system, including K-Cup portion pack storage racks and baskets, a My K-Cup reusable cartridge, and brewer carrying cases. The Company also sells other coffee-related equipment and accessories, gift assortments, hand-crafted items from coffee-source countries and Vermont, and gourmet food items covering a range of price points. These products are sold to consumers directly and through retail channels. The office coffee services business provides office coffee products including a variety of coffee brands and blends, brewing and beverage equipment and beverage supplies directly to offices.
Specialty Coffee business unit
SCBU sources, produces and sells coffee, hot cocoa, teas and other beverages, to be prepared hot or cold, in K-Cup portion packs and coffee in more traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs. These varieties are sold to supermarkets, club stores and convenience stores, restaurants and hospitality, office coffee distributors and also directly to consumers in the United States. In addition, SCBU sells Keurig single-cup brewing systems and other accessories to supermarkets and directly to consumers.
The At-Home sales channel consists primarily of sales of coffee, hot cocoa, teas and other beverages in K-Cup portion packs and coffee in more traditional packaging, including whole bean and ground coffee selections in bags to supermarkets, grocery stores and warehouse club stores in the United States and Canada. The AFH channel consists primarily of sales of coffee, hot cocoa, teas and other beverages in K-Cup portion packs and coffee in traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs to office coffee distributors, convenience stores, restaurants and hospitality accounts. SCBU processes and fulfills orders received from its Website
Keurig business unit
KBU targets its patented single-cup brewing systems for use both at-home (AH) and AFH, in North America. KBU sells AH single-cup brewers, accessories and coffee, tea, hot cocoa and other beverages, to be prepared hot or cold, in K-Cup portion packs produced by SCBU and CBU primarily to retailers, department stores and mass merchandisers principally by processing its sales orders through fulfillment entities for the AH channels. KBU sells AFH single-cup brewers to distributors for use in offices. KBU also sells AH brewers, a limited number of AFH brewers and K-Cup portion packs directly to consumers. KBU earns royalty income from K-Cup portion packs when shipped by its third party licensed roasters, except for shipments of K-Cup portion packs to KBU, for which the royalty is recognized as a reduction to the carrying cost of the inventory and as a reduction to cost of sales when sold through to third parties by KBU. In addition, through the second quarter of fiscal 2011, KBU earned royalty income from K-Cup portion packs when shipped by SCBU and CBU.
The retail sales channel consists primarily of sales processed by its fulfillment entities of AH brewers, coffee, hot cocoa, teas and other beverages in K-Cup portion packs and accessories made to retailers. All commercial brewers are sold to Keurig Authorized Distributors (KAD’s). KBU processes orders received from its Website, which are fulfilled by a third party fulfillment entity. Roasters licensed by KBU to manufacture and sell K-Cup portion packs, both to KBU for resale and to their other coffee customers, are obligated to pay a royalty to KBU upon shipment to their customer.
Canadian business unit
CBU sources, produces and sells coffees and teas and other beverages in a variety of packaging formats, including K-Cup portion packs, and coffee in more traditional packaging, such as bags and cans and fractional packs, and under a variety of its brands, including Van Houtte, Brulerie St. Denis, Brulerie Mont-Royal and Orient Express and its licensed Bigelow and Wolfgang Puck brands. These varieties are sold primarily to supermarkets, club stores, and through office coffee services to offices, convenience stores and restaurants mainly throughout Canada. CBU also manufactures brewing equipment and is responsible for all the Company coffee brand sales in the grocery channel in Canada. Timothy’s is included in the SCBU segment.
The At-Home sales channel consists primarily of sales of coffee, hot cocoa, teas and other beverages in K-Cup portion packs and coffee in more traditional packaging, including whole bean and ground coffee selections in bags and cans to supermarkets, grocery stores and warehouse club stores primarily in Canada. The Away-From- Home channel consists primarily of sales of coffee, hot cocoa, teas and other beverages in K-Cup portion packs and coffee in more traditional packaging including whole bean and ground coffee selections in bags and ground coffee in fractional packs to business offices, convenience stores, restaurants and hospitality accounts. CBU processes and fulfills orders received from its Website
More Information for Green Mountain Coffee Roasters, Inc. (GMCR):
Company Website - http://www.greenmountaincoffee.com
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