Green Mountain Coffee Roasters, Inc. Announces Price Increase
WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), announced today a price increase on all K-Cup® portion packs for its Keurig® Single Cup brewing system sold in North America. The increase will occur across all sales channels and will be effective beginning October 11, 2010. Consumers could expect to see a purchase price increase of approximately 10 to 15 percent over the next several months as a result.
“While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we’ve experienced over the past three months led us to conclude it is necessary to adjust our pricing.”
The increase is in response to several factors affecting the coffee industry including a sustained increase in the price of green coffee, differentials for premium quality coffees, increases in prices of other raw materials, as well as higher packaging and transportation costs. Over the past three months, green coffee prices have increased from $1.45 per pound to $1.90 per pound, or approximately 31 percent.
“Like others in the coffee industry, we have been closely monitoring rising green coffee costs and increases in other input costs like cocoa and packaging for several months,” said Scott McCreary, president of GMCR’s Specialty Coffee business unit. “While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we’ve experienced over the past three months led us to conclude it is necessary to adjust our pricing.”
About Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR)
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