Keurig Projected to Help Double GMCR Sales This Year, Analyst Says
September 29, 2011,
NEW YORK-Revenues from Keurig's K-Cup single-serve coffee cups and brewers will propel Green Mountain Coffee Roasters (GMCR) to a revenue of $2.7 billion this year, up 99 percent over last year, according to an analysis from Canaccord Genuity, a financial research firm.
The report, prepared by Canaccord Genuity analyst Scott Van Winkle, said its forecast is based on a 50 percent increase in shipments of Keurig brewers expected for the upcoming fourth quarter. This would bring a 65 percent jump in revenues from brewers for the quarter, to $135.6 million. In addition, fourth-quarter shipments of K-Cups should rise 52 percent in units, which would more than double revenue from K-Cups for the quarter to $506.7 million.
Van Winkle's report said a key development in the coming quarter will be the rollout of Starbucks K-Cups, which was announced in August. The first shipments to K-Cup retailers are slated for November.
The fourth quarter is seasonally soft in hot coffee consumption. Van Winkle said. However, "we expect tremendous growth of iced coffee and teas will be evident in the quarter," he said. "As is always the case, Q4 partially benefits from the beginning of the holiday stocking effort, with brewer shipments picking up late in the quarter for distribution into the channel."