...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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...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. (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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...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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...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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...will 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...
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...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: http://www.keurig.com/~/media/Files/Keurig 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 scheme...
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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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...KEURIG 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...
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...Overview The Green Mountain Company first started as a little cafe in Waitsfield, Vermont. Green Mountain Company was founded in 1981 by Robert P. Stiller. Robert P. Stiller found the coffee store while on vacation. He liked the coffee so much that he decided to buy the store. The company has grown into a large corporation and now has its headquarters in Waterbury, Vermont where they also house a roasting and distribution facility that is over 90,000 square feet. Green Mountain Coffee Roaster has had many accomplishments. In 1993 the coffee company first went public. Green mountain coffee roasters in 1996 the invested in Keurig, Inc. When the company invested in Keurig the owned 35% interest in that company. By 2002 they agreed to sell their product as fair trade coffee. In 2003 the coffee company increased its stake in Keurig, Inc. up to 43%.Green Mountain Coffee roasters then obtained Keurig, Inc. in 2006 and by 2009 they bought the wholesale division of a Canadian coffee provider Timothy world Coffees. The coffee company the bought and sold part of another Canadian distributor known as Van Houtte. In 2011 Green Mountain Coffee made agreements with Starbucks and Dunkin Donuts to sell their coffee in single serve pods and in return these companies would offer the Keurig brewing machine for...
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...com/shop/bsop-209-operations-analysis-entire-course/ 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 the...
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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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...com/shop/bsop-209-operations-analysis-entire-course/ 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 the...
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...hold an 849 billion gross domestic product that is currently growing at about two percent. The continued growth is mainly due to the increase in international trade, the largest engine of the Dutch economy (CIA). These figures make the Netherland’s market an optimal place to enter a business. Marketing and distributing in the Netherlands is much like marketing and distributing in the United States. I will use marketing techniques such as using my logo, products, and brand name to market my products on the internet, television, and through retail. To distribute my products, I will contact big box stores such as HEMA or Giant, which are department and grocery stores, to make deals with them to get my products on their shelves (Big). Local coffee shops that are in the Netherlands will be other sources I will contact to get my product out on the shelves for consumers. According to internetworldstats.com, the Netherlands are in the top 25 of having one of the highest rates of internet access in the world. Therefore, I will also sell my products over the internet. The internet products sold will come directly from our headquarters in the United States. Some of the distribution channels available in the...
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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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