Green Mountain Net Triples in Third Quarter as Keurig, Advertising Drive Business
July 28, 2011,
WATERBURY, Vt.--Sales of Keurig products and advertising and support programs helped Green Mountain Coffee Roasters to a whopping 206 percent increase in net income, to $56.3 million.
Sales of Keurig's K-Cup portion packs rose 136 percent in the quarter, which ended on June 25, while Keurig brewers achieved a 66 percent sales increase. Both factors provided the fuel for Green Mountain's 127 percent net sales gain, to $717.2 million.
The company's spring advertising and brand-support program had a huge impact, according to Lawrence Blanford, Green Mountain's president and CEO. "We have seen awareness of the Keurig Single-Cup Brewing system grow faster and more broadly than we could have imagined just a few years ago," Blanford said, adding that the program should continue to push brand awareness as the holiday shopping season approaches.
The company's sales growth helped push gross margin up 143 basis points to 36.8 percent. Although selling, general and administrative expenses rose 109 percent in dollars, they dropped 111 basis points as a percentage of sales to 13.3 percent.