Keurig brewing system spurs gain at Green Mountain

by Eric Schroeder
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WATERBURY, VT. — Net income at Green Mountain Coffee Roasters, Inc. in the fiscal year ended Sept. 25 totaled $79,506,000, equal to 60c per share on the common stock, up 46% from $54,439,000, or 48c per share, in fiscal 2009. Net sales for the year also were sharply higher, rising to $1,356,775,000 from $786,135,000.

“Our fiscal 2010 results demonstrate increasing consumer awareness of and interest in the convenience and value represented by the Keurig Single-Cup system,” said Lawrence J. Blanford, president and chief executive officer. “We estimate Keurig systems are currently active in approximately 6% of the 90 million coffee-drinking households in the United States, and we believe there is room to expand our presence going forward.”

For the fourth quarter ended Sept. 25, net income was $26,991,000, or 20c per share, up 92% from $14,052,000, or 12c per share, in the same period a year ago. Net sales in the fourth quarter totaled $373,087,000, up 73% from $215,965,000.

Green Mountain said approximately 90% of consolidated sales during the fourth quarter were from the Keurig brewing system and its recurring K-Cup portion pack revenue. Net sales from K-Cup portion packs totaled $249.5 million in the quarter, up 115%, or $133.5 million, from the same period of fiscal 2009. The company attributed the gain to the introduction of Folgers Gourmet Selections and Millstone-branded K-Cups to grocery, mass and club outlets by the J.M. Smucker Co.

Net sales from Keurig brewers and accessories totaled $82.2 million in the fourth quarter, up 48%, or $26.7 million, from the prior-year period.

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