...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, Green...
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...interoffice memorandum to: | Rich Peyser | from: | Aditya Rege | subject: | Competitor Analysis | date: | February 4, 2015 | cc: | Michael mandel | | | Mr. Peyser, you have requested me to perform this competitor analysis in order to help you analyze how our competitors are doing in comparison to our Green Mountain Coffee Brand. While Starbucks and J.M Smucker and Company are corporations as well, they lack the power that we do in the market, however, because they are two other major players, I decided they would be the subjects of comparison. So far, I have gathered much information and done many hours of research. Here are the results of what I have found. There are many competitors in the industry ranging from small independent business to large corporatized companies that have an established presence in the market. The major threat comes from Starbucks because the idea of getting cheap store-made coffee is becoming more appealing in today’s corporate society. If one had a large amount of disposable income and had to choose between roasting coffee in a Keurig or getting store bought coffee at a Starbucks every morning, they would hands down pick option number two at least 80 percent of the time. Going to Starbucks involves less effort and still gives you the same product. J.M Smucker is another corporation that produces a sizable amount of coffee, which they then sell to supermarkets and grocery stores. If we can beat both of these companies in those markets...
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...COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters, Keurig Coffee/ www.gmcr.com, www.keurig.com / 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 (www.gmcr.com). 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(http://finance.yahoo.com). SWOT ANALYSIS Strengths: * Strong brand name. * Unique and large variety of products in the coffee market. * Environmentally conscience...
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...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 appropriate...
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...Green Mountain Coffee Case Porter 5-force model Rivalry: a strong force Green Mountain coffee as a premium coffee maker, has only two current large threats, Starbucks, and Seattle’s best coffee. The leader of the premium coffee industry is Starbucks and does have the necessary resources to effectively compete with Green Mountain Coffee. Another issue facing Green Mountain Coffee is the threat of new entry. Since the premium coffee industry is a growing market, and with a relatively easy entrance into the market, this in turn increases the overall amount of product in the market and creates an overabundance in product. To combat rivalry as well as ensure supply Green Mountain as been very active in starting up coffee bean farms in South America to ensure quality and availability in the future. One strong point that Green Mountain possesses is that as far as premium coffee producers go, they are highly visible in work place offices as well as available at many gas stations in which they lend or lease coffee making equipment to these establishments and offer superior service, train, and perform preventative maintenance on this equipment. The potential switching costs for the buyers of Green Mountain would make it unattractive for them to switch to another supplier. Threat of Substitutes: A weak force The reasoning behind why the threat of substitutes is a weak force is that on general the reason people drink premium coffee is not to satisfy thirst, it is to enjoy a tasty...
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...Green Mountain Coffee Roasters, Inc. (KGM) was created in 1981 as a small café in Waitsfield, Vermont. In 1993, the Company went public and extended its first wings around Keurig, Inc. It acquired the rest of Keurig in 2006 and the combined company has made tremendous changes in the way U.S. prepares their beverages whether at home or at workplace through the innovative Keurig Single Cup Brewing System. The Company produces and sells more than 60 different brands and 400 varieties of coffee, cocoa, teas and other beverages in K-Cup packs and Vue packs, as well as a variety of specialty whole bean and ground coffee. The Company operates in three different business units: the Specialty Coffee business unit, the Keurig business unit, and KGM...
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...COMPANY INFORMATION Name :: Green Mountain Coffee Roasters, Keurig Coffee Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com Industry :: Processed & Packaged Goods- Coffee Makers BACKGROUND & HISTORY 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 (Coffee.org, 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 Strengths - 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 Opportunities - Expanding to new markets - Collaborations - Increased purchases - Keurig Acquisition - Expansion to hotels and businesses - Expand suppliers Threats - Intense...
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...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 recognition...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...Case Study Report COMPANY NAME/WEBSITE/INDUSTRY Green Mountain Coffee Roasters (GMCR) Maker of specialty coffee and coffee makers ~www.gmcr.com 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 development...
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...Keurig The word Keurig derives from the Dutch word meaning excellence. Keurig, Incorporated began with the company’s inception in 1992 (Kerin & Peterson, 2007). Gourmet coffee is a growing trend throughout the world. Keurig Incorporated was founded on the inspiration that coffee lovers should be able to brew and enjoy once perfect cup of coffee at a time (Kerin & Peterson). Excellence had been the guiding principle behind the development of its products and services. With gourmet coffee houses popping up in many areas, consumers were spending at least $1.50 more for one cup of gourmet coffee. Keurig’s launch of the single cup brewing system in the office coffee service market in the late 1990’s had benefited from coffee drinkers consistent increase of sophisticated drinks. In 2002 Keurig became the leading name in office coffee service by shipping over 33,000 units. In February 2003 Keurig was ready to launch their new B100 system targeting the at home segment all in hopes of gaining the same success Keurig found in the office coffee service, in a more competitive market (Kerin & Peterson, 2007). With the competition entering the single cup brewing market, Keurig had to think fast if they wanted to succeed in the Home market (Kerin & Peterson, 2007). Nick Lazaris, President, Chief Executive Officer and Director of Keurig, had to make the decision as to proceed with a two Keurig-Cup (K-Cup) strategy; this decision had the potential to...
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...E-Business Carrie Moore Western Governors University QRT Task 1 04/07/13 Part A: Developing an online business expansion proposal. 1. Viability of product or service A. What is the business case for going online: In today’s society there is such a demand for coffee, not only in the United States, but worldwide. One highly increasing trend is the desire for specialty coffee. At Blue Mountain Coffee, they are right on track to meeting the growing consumer’s needs. They offer a wide line of specialty coffee made from the finest coffee beans. It appears that the Market and Sales potential for their specialty product line is vary vast. Consumers' purchase of gourmet coffee (specialty and premium) is increasing, according to the National Coffee Association, with over 40% of coffee consumed being gourmet. They currently are using a sales force to sell their coffee to a variety of wholesale locations, and have been very successful. Many customers already are loyal to their brand, and are even loyal to their coffee. With the desire to grow their business, they will need to make their company even more visible and easily accessible. By putting Blue Mountain Coffee online they will be able to achieve this task. B. Why does it make sense to go online: There are many types of businesses that currently have online exposure, and have found great success. Creating a website to sell Blue Mountain Coffee’s superior product line would be an endearing...
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...Company Analysis Abstract Starbucks is a publicly traded company that has been a main competitor in the coffee and in the special eatery industries. This document will give a brief description of the company, an Analysis of the economic implications of operating in global markets and different market and industry structures, and an assessment of the impact of ethical and regulatory considerations of Starbucks. It will analyze the macro and micro economic environments and then give a conclusion and recommendation of how the company can improve in the future. Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. According to their 2012 Annual report, they have 18,066 stores in over 60 countries, including 12,903 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. In addition, Starbucks is an active member of the World Cocoa Foundation (starbucks.com). Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. They have over 30 blends and single origin premium coffee. They sell coffee and tea...
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...Company Analysis Abstract Starbucks is a publicly traded company that has been a main competitor in the coffee and in the special eatery industries. This document will give a brief description of the company, an Analysis of the economic implications of operating in global markets and different market and industry structures, and an assessment of the impact of ethical and regulatory considerations of Starbucks. It will analyze the macro and micro economic environments and then give a conclusion and recommendation of how the company can improve in the future. Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. According to their 2012 Annual report, they have 18,066 stores in over 60 countries, including 12,903 in the United States, 1,324 in Canada, 989 in Japan, 851 in the People's Republic of China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. In addition, Starbucks is an active member of the World Cocoa Foundation (starbucks.com). Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. They have over 30 blends and single origin premium coffee. They sell coffee and tea...
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