Premium Essay

Coffee Mountain Roasters

In: Business and Management

Submitted By chrissymay7
Words 1017
Pages 5
Name :: Green Mountain Coffee Roasters, Keurig Coffee
Website ::,,
Industry :: Processed & Packaged Goods- Coffee Makers
Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012). SWOT ANALYSIS
- Brand strength
- Unique & large variety of products
- Customer loyalty
- Environmentally conscience, socially responsible
- Innovative products and research
- Strong growth potential
- Product consistency Weaknesses
- Not a strong online presence
- Supplier dependence
- Concentrated customer base
- Single product line
- Returns
- Keurig defects
- Capacity constraints

- Expanding to new markets
- Collaborations
- Increased purchases
- Keurig Acquisition
- Expansion to hotels and businesses
- Expand suppliers Threats
- Intense Competition
- Changing consumer tastes
- Large variety of products in the industry
- Instability in coffee growing regions
- Food and Safety Regulations
- Patents expiration

(Dess, Lumpkin, Eisner, & McNamara, 2012)

(Morningstar, 2009)
GMCR has created a successful strategy for selling and marketing...

Similar Documents

Premium Essay

Green Mountain Coffee Roasters

...Green Mountain Coffee Roasters: A Good Cup of Java In the beautiful mountains of Vermont, you will find the home of Green Mountain Coffee Roasters, Inc. (GMCR). In 1981, Robert Stiller, the company founder, while vacationing at a ski resort in Waitsfield, VT found a cup of coffee so good that he bought the company. At the time, Green Mountain was a small, specialty coffee store, and nobody would have imagined that GMCR would become one of the world's leading specialty coffee makers. Today GMCR is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. Reaching this point, however, was not easy and forced GMCR to master their marketing strategies in order to survive the competition. In a time and age when 'environmentally responsible' has become the latest buzzword in social and environmental responsibility is not a trendy marketing move. It is a key concept that has been part of the company's core commitment and values from the time when it was housed in a tiny storefront cafe. In fact, Green Mountain has been named one of the Top 100 Most Socially Conscious Corporations by Business, Inc. for two years running. The company's production plant has been certified organic since 1997, and they remain committed to offering high quality, completely organically grown coffee as a major part of their offerings. In addition to their commitment to organically grown coffee, GMCR supports sustainable coffee......

Words: 1976 - Pages: 8

Premium Essay

Green Mountain Coffee Roaster

...Assignment 4-4 Shane Rittenhouse Acct.310 Ann Remely 6/5/13 Issue During the fourth quarter of 2010 Green Mountain Coffee Roasters had some accounting irregularities become known to the public. Green Mountain’s problems all started from how they recognized income, though intercompany inventory and third party vendor. After the SEC inquiry, Green Mountain’s accounting irregularities spanned three fiscal years and three fiscal quarters. Starting with fiscal year 2007 and running through the third fiscal quarter of 2010. In total Green Mountain had five areas of their financial statements in which they did not follow GAAP. The first issue overstated $7.6 million dollars of inventory during the time period, because of an incorrect standard of cost (Dulong, 2010). Next they had a $1.4 million overstated income, because of incorrect accrual amount of incentive programs expenses. Third issue overstated income by $1 million dollars, because of timing classification of historical revenue royalties from third party vendors. Fourth issue overstated $800,000 of income, because of incorrect standards for intercompany inventory cost. Fifth is an understated income of $700,000, because of a failure to reverse accrual customer incentive program. All amounts in this report are amount of pre-income tax earnings. Rule During this time period Green Mountain has violated three rules from the FASB accounting standards codification: inventory measurement, revenue......

Words: 1080 - Pages: 5

Premium Essay

Green Mountain Coffee Roasters

...COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters, Keurig Coffee/, / Specialty Coffee-Coffee Makers BACKGROUND/HISTORY Green Mountain Coffee Roasters, Inc. is a leader in specialty coffee and coffee makers, is highly recognized for its award winning coffees, environmentally and socially responsible business practices, and innovative brewing technologies. Green Mountain Coffee Roasters was founded in 1981 by Bob Stiller in Waitsfield, Vermont. In 1993 GMCR goes public and stock opens at $10. In 2006 GMCR acquires Keurig Incorporated, a single cup brewing system for coffees, teas, hot chocolate and apple cider. Green Mountain Coffee Roasters has teamed up with some of the strongest beverage companies and have acquired and merged with several specialty brands such as, Starbucks and Dunkin Donuts. They have also have Keurig licensing the patents for creating the single-serving unit called a “K-cup.” In 2007 Larry Blanford took the position of CEO and President of GMCR while Bob Still remains as Chairman of the Board. 2012 Brain Kelley joined GMCR and was named President and CEO and still holds that position today ( Michelle Stacey is currently the president of Keurig Inc. As of December 28, 2013 GMCR net sales were $1,386,670 and their gross profit was $464,047( SWOT ANALYSIS Strengths: * Strong brand name. * Unique and large variety of products in the coffee market. * Environmentally......

Words: 1118 - Pages: 5

Premium Essay

Mounain Coffee Roasters

...Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters (GMCR) Maker of specialty coffee and coffee makers and Keurig Inc. (Proprietary company of GMCR) Maker of the Single cup brewing system in North America BACKGROUND/HISTORY GMCR is a specialty coffee company based in Waterbury, Vermont. This company went public in September 1993. Green Mountain Coffee Roasters began in 1981 as a small café in Vermont. The demand grew with requests being made by local restaurants. The company then moved its headquarters to Waterbury Vermont which makes up the 90,000 square foot roasting and distribution facility. GMCR primary business is as quoted by the president and CEO Lawrence J. Blanford, GMCR’s strategy of aligning with the strongest coffee brands to support a range of consumer choice and taste profiles in an innovative Keurig Brewing System. Keurig was launched in 1990 by Peter Dragone and John Sylvan. These two individuals built Keurig on the bases that coffee should always be served fresh and fast. Their endearing concept was “Why do we brew coffee by the pot when people drink it by the cup? Henceforth this revolutionary idea brought about the Keurig K~Cup portion pack. Then in 1994 Keurig secured a patent and then created a prototype. It was not until some investors came along with money and demanded that Nick Lazaris, a veteran executive, be brought on to assisting them in creating a model. After eight years of......

Words: 900 - Pages: 4

Premium Essay

Gmcr Milestone One

...Green Mountain Coffee “Brewing a Better Day” Milestone One Kim Hureau Southern New Hampshire University Green Mountain Coffee “Brewing a Better Day” The purpose of this paper is to provide a comprehensive analysis on Green Mountain Coffee. This analysis will cover an overall market, cost and production and supply and demand analysis for Green Mountain Coffee, including Keurig. Green Mountain Coffee provides single serve brewed coffees in a variety of flavors and brewing styles to both the at home as well as corporate consumers. Green Mountain has an extreme focus on sustainability and green business practices and was the first company in the coffee industry to support the United Nation’s Global Reporting Initiative (GRI) mission to develop globally accepted sustainability reporting guidelines (Sustainability, n.d.). History of the Company Purchased by Robert Stiller in 1981 while vacationing in Waitsfield, Vt., Robert thoroughly enjoyed the coffee he bought when he stopped in at the small specialty coffee shop so much that he bought the store. In 1989, Green Mountain Coffee formed an environmental committee to address conservation concerns Robert Stiller had, this conservation program has remained a consistent social program through the many changes at Green Mountain. The Company changed their name to Green Mountain Roasters in 1993 and became a publically traded in company in September of that same year. In the late 1990’s,......

Words: 363 - Pages: 2

Premium Essay

Coca Cola

...thrive in the market because the last time we attempted to launch a product like this if failed miserably. Also, we still need to figure out a way to make our product have instant chill. Our Customers will not buy if the don’t have cold Coke. On the other hand, we have some large opportunities to excel our company as a whole. The first decision is if we partner with Green mountain coffee roasters Inc.; they can really improved our chances of being successful because they put their Keurig coffee maker in 10% of us homes. People will pay for convenience and easy to use machine. The next decision is if we decided to produce this product it would lower many transportation and extra product costs with bottling. The last decision we would have to make is if we should use co2 canisters. This was tried before and customers thought it was inconvenient. In the rest of the memo, I will show how this company can be even more successful but also more efficient by making decisions. Full Analysis Sense we tried to make this home soda maker before, I believe that we should partner with Green mountain coffee roasters Inc. because they are in 10% of us homes already and they have a trusted brand name. The stakeholders might have a different idea about partnering because it’s going to come with a price tag. We just have to educate them in the sense of how much more profit we could make from using more resources. Moving on to the second decision, if we commit to product this product we......

Words: 790 - Pages: 4

Free Essay

Eng221 - User Manual Critique

...User Manual Critique Week 4 Assignment Gregorio Cisneros ENG/221 07/17/2014 Joseph Aguirre The following review and critique will be on the Keurig, Inc., Keurig® K-Cup™ K70/K75 Platinum Brewer Owner’s Manual. The document is available online via the following website link: Brewer Manuals/2013 Use and Care Guides/Platinum Use Care Guide.ashx This review will cover the purpose and function of the manual, format and design, manual usability, the uses of written communication and appropriate usage of visual and technical elements. This critique will demonstrate how this manual is both concise and effective manual. Purpose and Function The purpose of the manual is clear to the reader as to help product owners know how to setup the unit, use the device correctly. The manual also informs readers of the device controls and features, how to clean and maintain the device, knowledge of troubleshooting topics and solutions, and informing the end user of warranty specifications. The fundamental function is to educate the consumer how the Keurig product works and provide additional available support content pertaining to the device. Format and Design The manual format is both pre-printed physical copy or available online for viewing and downloading. The document dimensions are smaller than 8.5 in. x 11 in. letter size. The manuals custom size of 8.5 in. x 5.5 in. size makes it compact and economical. The cover is a 4-color process......

Words: 644 - Pages: 3

Premium Essay

Green Mountain Coffee Roasters-Marketing Plan Erobinson

...Green Mountain Coffee Roasters, Inc. (GMCR) Prepared For Gary L. Payne, MBA Sam Houston State University Prepared By Eric Robinson Fall Semester 2013 Part I History The coffee and tea manufacturing industry has become a $70 billion annual global sales commodity (First Research, Industry Overview). Business continues to boom and coffee manufacturers are able to broaden their revenues by reaching new segments and geographic areas through creative marketing initiatives. According to First Research (8/12/2013), the US US coffee and tea manufacturing industry includes about 300 companies with an annual combined revenue of almost $12 billion. That equates to less than one third of the global annual sales. With Starbucks corralling the majority of the upscale retail coffee consumers; Dunkin’ Donuts, the blue-collar, no-frills brand coffee drinker; Green Mountain Coffee Roasters (GMCR) went looking for a way to capture the self-serve specialty coffee consumer in North America and Canada. This customer tends to be a gourmet beverage drinker who doesn’t compromise on taste but likes quickness and convenience. The GMCR state of the art eCommerce portal allows customers to create the ultimate coffee experience in the home, in the office, and in food service environments. GMCR is so committed to the outstanding coffee experience that they purchase some of the highest quality Arabica beans available from the world’s coffee producing regions and match it with the......

Words: 3533 - Pages: 15

Premium Essay

Keurig Green Mountain Coffee Roaster Company Strategy Analysis

...Green Mountain Coffee Roaster Company Content KEURIG Green Mountain Coffee Roaster Company 1 KEURIG Green Mountain Coffee Roaster Company 3 1. Introduction 3 1.1 Product and operation 3 1.2 Stock price 4 1.3 Financial data 4 The revenue from 2009 to 2013 7 Net sale and operating income for each area segments 8 Net sale and operating income for each product catalogs 9 The cost from 2009 to 2013 10 SG&A trend 10 Components of SG&A 11 Comparison: Enterprise R&D Spend 11 Comparison: Enterprise Advertising Spend 12 1.4 Competition 13 1.5 Target market 14 2. The KEURIG Green Mountain Coffee Roaster Company’s Story 14 3. The problems 16 3.1 Problem in the supply 16 3.2 Competition from the distributions 16 3.3 Problem in innovation and successful development 16 3.4 Single experience 17 3.5 Narrow direction for sale 17 3.6 Quality of unlicensed 17 3.7 Narrow market for sale 17 4. Change of Strategy 18 4.1 Increasing the supply chains 18 4.2 Varying the distributions 19 4.3 Improving the business model 19 4.4 Building the relationships 20 4.5 Strength the experience 20 4.6 Expending away from home business 21 4.7 Converting unlicensed 22 4.8 Sharpening marketing message 22 4.9 International expansion 23 Appendix: Extracts from KEURIG Green Mountain coffee Company 10-K report. 24 1. Operating Free Cash Flow 24 2. Long Term Debt-to-Equity Ratio 24 KEURIG Green Mountain Coffee Roaster......

Words: 6488 - Pages: 26

Free Essay

Bikes to Rwanda

...of Prosperity Stumptown Coffee Roasters is a small coffee roaster in Portland, Oregon that buys its fair trade coffee from co-ops around the world, including the Karaba Co-op from Rwanda, Africa. During a meeting Stumptown asked the Karaba what they needed. One of the answers was bikes to help transport the coffee from the hills to the processing centers. Thus, the Bikes to Rwanda Project non-profit organization was born. Bikes to Rwnada was started to help the developing communities achieve economic stability, sustainability, prosperity and even pride. With help from bicycle maker Tom Ritchey, founder of Ritchey Design, Bikes to Rwanda designed bikes with longer frames to be able to transport up to 350 lbs. Until Bikes to Rwanda started providing bikes, workers had to carry bags full of cherries up and down the steep muddy unpaved hills one bag at a time. Now, workers can carry up to two bags at a time and much quicker than before. Tom Ritchey also help to found Project Rwanda, another non-profit organization dedicated to provide coffee bikes to West Hills Coffee. Rwanda is a war-torn country in Africa. One of Rwanda’s main products is coffee. After years of war and genocide, the country’s coffee farms were destroyed and poverty was high. Bikes to Rwanda provides bikes at a discounted rate of around $120 (GOOD Worldwide, LLC, 2007). Those who want bikes are allowed to work off their debt for the bike from each bag of coffee they bring to the weighing......

Words: 885 - Pages: 4

Premium Essay

Starbucks Developing International Expansion Plan

...1971 and is now one of the fastest developing coffee retailers in the world. The company now has over 8,000 company operated stores and 7,803 licensed stores in 49 countries. Starbucks has been in a steady state of development since CEO Howard Shultz in a franchise with a group of investors in 1987. Starbucks is the largest coffee bar chain in the U.S. In actual fact, they are the largest in the world, with some 2,600 stores globally. These stores all have like products that are similar in appearance. Starbucks seeks to provide the same experience to coffee drinkers in Seattle, New York, London, Kuwait City, and Taipei. Starbucks also offers services to companies to supply coffee and related items to their employees, owns a supermarket channel run by Kraft Foods, and sells its coffee and other items directly to customers through catalogs and its website. Ahead of these items, the company has an agreement with Pepsi-Cola to develop and produce bottled coffee drinks like the "Frappuccino" drinks and an agreement with Dreyer's Grand Ice Cream to produce different flavors of ice cream. Moreover, the company provides coffee service to customers like airlines and hotels. To put all this in perspective, in fiscal year 2009, Company operated retail stores accounted for about 84% of revenues. Starbucks catches the attention of near-cult followers, serving 25 million drinks a week at over 8,000 locations worldwide. The Seattle-based coffee empire was among the top 10 on......

Words: 3616 - Pages: 15

Free Essay

Culture Shock

...of running projects, or you still think that my country is located in Africa, it’s not very important. Coz today I will introduce my country in another way. What I want to show you all is this -- Blue Mountain Coffee! Some of you may have heard of the Jamaican Blue Mountain coffee, of course you’ve been heard about it coz it is world famous! Our coffee produced from Blue Mountain which located in the coffee belt, it has a rich volcanic soil, clean air, no pollution, climate humid, foggy and rainy throughout the year. Three taste -- sweet, sour, bitter are prefect mixed in our coffee, the taste of our coffee must make you never forget. Now, ninety percent of Jamaican Blue Mountain coffee each year are bought by the Japanese. This is because Japan has invested Jamaican coffee for a brief time. But now we want to cooperate with more countries, especially in countries such as China which has a great consumption potential in the future. Question: 1. I would like to know whether China interested in investing our Blue Mountain Coffee. 2. We can guarantee the quality of the coffee, but as the second most expensive coffee in the world, we can not guarantee a low price to you. 3. As food import and export management is very strict in China, I would like to know if you can export our coffee to China....

Words: 277 - Pages: 2

Free Essay

Luau Kona and Blue Jamaican

...Question: Company Luau Kona and Blue Jamaican a. Using a plant-wide rate based on machine hours to assign manufacturing overhead cost to products In this approach the manufacturing overhead is based on machine hours. The manufacturing overhead application rate has been has been provided as $54.00 per machine hour. The following table list on the first row the number of machine hours required for each coffee type. The second row show the manufacture overhead for one kilo of coffee, based on the machine hours for one kilo of each coffee and the rate for machine hour | Luau Kona | Blue Jamaican | Machine hours required for the manufacture of one kilo of coffee. | 0.04 | 0.02 | Manufacturing overhead application rate for one kilo of coffee | 0.04 x $54.00 = $2.16 | 0.02 x $54.00= $1.08 | Requirement: Determine the total unit product cost of one kilogram of the Luau Kona coffee and one kilogram of the Blue Jamaican coffee. In order to calculate the total unit product cost of one kilogram of coffee, we need to add: - Direct material cost - Direct labour cost - Manufacturing overhead application rate | Luau Kona | Blue Jamaican | Direct material cost | $5.20 | $3.10 | Direct labour cost | $0.20 | $0.37 | Manufacturing overhead application rate | $2.16 | $1.08 | Total unit product cost of one kilogram | $7.56 | $4.55 | b. Using multiple predetermined overhead rates based on the departmental rates In this approach the manufacturing overhead is calculated by adding......

Words: 1611 - Pages: 7

Free Essay

Thesis State

...Thesis statement The coffee industry has been thriving over the years up to 1985, but due to decline in sales completion and supply being greater than demand the industries’ survival and growth has dwindled. Rationale This question was chosen by the researcher to examine the factors that encouraged the development and existence of the coffee industry. This research will help others fix the problem and provide jobs for unemployed people, bring more money for the government to fund programs such as P.A.T.H which helps children in schools as well as for the government to buy more medical necessities. Introduction Coffee was introduced to Jamaica by Sir Nicholas Lawes governor of Jamaica at that time, he brought the plant from Haiti in 1728. It was first planted in the parish of St. Andrew on the Blue Mountains. The Coffee Industry became successful because of the natural attributes of the country such as the cool climate which was suitable for the growth of coffee. The relief of the land such as the rugged mountains and the rich soil. The marketing overseas also proved valuable as it provided foreign exchange. The industry also provided employment for competent and incompetent workers. As a result of its growth farmers saw it fit to invest in the cultivation of coffee in various parts of Jamaica. It became more dominant in 1838 after slavery was fully abolished and seen as a good investment by others than peasant farmers. The coffee industry is important to the......

Words: 831 - Pages: 4

Premium Essay

Homework Case Analysis Please read the Green Mountain Coffee Roasters and Keurig Coffee (C36) case analysis carefully and produce a case analysis report, following the instructions that are given in the Case Analysis report document in Doc Sharing. Green Mountain Coffee Roasters is a company that makes the K- cups, which are used in a single dispenser coffee maker, and takes around 60 seconds to make. This allows for consumers to enjoy their favorite coffees at home. Green Mountain Coffee Roasters teamed up with Starbucks and Dunkin Donuts coffee to provide the consumers their favorite brand of coffee in the K-cup. This is something that is a great opportunity to Starbucks because the K- cups are very popular and easy to use amongst coffee lovers and now easily available at most stores. The CEO, president, and chairman of Starbucks Corporation is Howard Schultz and the President and CEO of GMCR is Lawrence Blanford. Dunkin Brands CEO and President Nigel Travis believes customers will be delighted to learn that Americas Favorite Coffee will soon be able to be prepared in Americas fastest-growing single-cup brewing system (Dess, 2004 pp. C296). The teaming up of Green Mountain Coffee Roasters, Starbucks and Dunkin has enough variety for any of their loyal customers. This is a great opportunity for the company since this will help revenue increase since the availability for Starbucks coffee will be available to everyone who uses......

Words: 257 - Pages: 2