Keurig Boosts Green Mountain Fourth Quarter

WATERBURY, Vt.--Sales of Keurig brewers and K-Cup portion packs fueled Green Mountain Coffee Roasters, Keurig's parent company, to huge gains in sales and profits in the fourth quarter.

Green Mountain's net income rose 92 percent in the quarter to $27 million, and the company reported a 73 percent gain in net sales, which totaled $373.1 million. In its statement on the results, Green Mountain said Keurig brewers and K-Cups represented about 90 percent of its overall sales in the quarter, which ended on Sept. 25. K-Cup sales increased 115 percent in the quarter, and unit shipments were 80 percent up over the fourth quarter of last year. Brewer sales increased 48 percent in the quarter.

Green Mountain's gross margin did fall 150 basis points in the quarter, which the company attributed to an increase in brewer sales returns, a rise in brewer warranty expense and increased costs for green coffee. Selling, operating, general and administrative expenses rose 63 percent in dollars but fell 116 basis points as a percentage of sales.

For the fiscal year as a whole, Green Mountain logged a 46 percent increase in net income to $79.5 million, and grew sales by 73 percent to nearly $1.4 billion. The company is projecting a 45 to 53 percent gain in net sales for fiscal year 2011.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.