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More Growth for Green Mountain – Analyst Blog

Zacks Market Commentaries (July 1st, 2009) Writes:

Green Mountain Coffee Roasters (GMCR) has reported double-digit revenue growth for the last 26 consecutive quarters, and, since the acquisition of Keurig, in 2006, the company has reported net sales growth of approximately more than 39% for 11 consecutive quarters.

In March 2009, the company acquired the Tully's Coffee brand and wholesale business, from Tully's Coffee Corporation. The acquisition is believed to be a good strategic addition to Green Mountain's coffee roasting family, as Tully's has a West Coast tradition of outstanding hand-crafted coffees and an established infrastructure in the wholesale business distributing coffee to over 5,000 supermarkets, as well as to office coffee service and food service distributors, located primarily in the Western and Midwestern U.S.

Green Mountain plans to benefit from synergies within its family of brands and the multi-channel distribution strategy to strengthen its leadership in the specialty coffee and in the single-serve brewing

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Specialty Coffee Industry Defies Recession – Analyst Blog

Zacks Market Commentaries (June 29th, 2009) Writes:

Despite the recessionary environment, demand for specialty coffee has been rising. According to the data provided by the National Coffee Association's (NCA) 2009 National Coffee Drinking Trends market research survey, coffee consumption has remained steady at 59% so far in 2009, and the NCA also stated that the at home consumption has hit the highest levels in 2009 since 2003 increasing by 5%.

Further, Andrew Hetzel, President and Founder of Cafemakers, states that, a smaller-sized coffee with strong flavors provides more satisfaction to the consumer and therefore customers are also willing to pay more. Customers choose specialty coffee brands based on the total value proposition that includes quality, variety, convenience, and price. Therefore, companies such as Green Mountain Coffee Roasters (GMCR), Peet's Coffee & Tea (PEET), Kraft Foods (KFT), Sara Lee (SLE)

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