Letter
from Bob Stiller
President & CEO,
Green Mountain Coffee Roasters
Dear
Roaster Reader,
Vermont is in the midst of my
favorite season. The hillsides surrounding us here in
Waterbury have been ablaze in the bright colors of
autumn. Now, many of the leaves have fallen -- the annual
precursor of the snow which will follow. As you will read in this issue, our business has
continued to expand over the past few months. Our growth
with Mobil Oil Corporation On the RunSM convenience stores will continue
on a nationwide basis, our our international sales effort
is introducing Green Mountain CoffeeTM to new customers around the
world every day. The new addition to our distribution and
production facility is nearing completion, as is the
beneficio and hydroelectric project we funded in the
Chanchamayo area of Peru. Our new company-owned retail
store in South Portland opened in October, just as we
introduced two new limited edition seasonal coffees:
Autumn Harvest Blend and Holiday Blend. Green Mountain
Coffee is now available at all Staples outlets across the
U.S. We have continued to aggressively increase the
penetration of Green Mountain Coffee into the workplace
by expanding our network of office coffee service
distributors.
As we look to the New Year, I thank you for your
continued support, and wish you and your family a
wonderful autumn and holiday season.
Sincerely,
Bob
Stiller
.................................
GMCR relocates retail
store in So. Portland
NEW LOOK, FOCUS & PRODUCTS
Green Mountain has moved its South
Portland, Maine retail store location from John Roberts
Road to 343 Gorham Road in the Cornerbrook Center Complex
across from the Maine Mall. The new location is the
company's first to combine in its design a slice of
Vermont, a relaxing and inviting family orientation, and
an emphasis on specialty coffee beverages and their
creation.
.................................
Third Quarter
Financial Results!
For the twelve months ended July
5, 1997, net sales increased 25.5% to $10,817,000
reported for the comparable 1996 period. Net income for
the twelve weeks was $1,000 or $0.00 per share, compared
to net income of $149,000 or $0.04 per share, reported
for the comparable year-ago period. The latest quarter's
results reflect the impact of the Company's increase in
selling, sales support and marketing expenses associated
with the Company's increased expansion efforts which
commenced in March of 1996. This year-over-year net
income decline was anticipated by the Company, the
securities analyst that follows the Company and other
industry observers.
.................................
GMCR Office Coffee
Service Business Continues to Expand
The demand for high quality coffee
in the workplace has continued to fuel the expansion of Green
Mountain's Office Coffee Service (OCS) segment.
Many employers and businesses have found that providing
employees with high-quality coffee eliminates the need
for employees to leave the office in search of a good cup
of coffee. 
Early in 1997, five OCS companies were distributing Green
Mountain Coffee to offices, primarily in the Northeast.
Today over twenty-five distributors are placing Green
Mountain Coffee in workplaces from Chicago to South
Carolina and northward.
|
|
Peruvian Project Nears Completion
Just over a year ago, Green
Mountain Coffee Roasters added Peruvian Organic
Select™ to its product line. This
certified organic coffee from the Chanchamayo area of
Peru was recently designated as one of the company's
Stewardship coffees.
In December of 1996, Deb Randall and Rick Peyser of Green
Mountain visited Peru to meet with the farmers who grow
Organic Peruvian Select. This coffee is grown on jungle
hillsides where it is heavily shaded by lush canopies of
native trees. While the Chanchamayo area is rich in
natural beauty, the population of this remote region is
economically challenged, and coffee processing facilities
are generally quite primitive.
Shortly after
returning to Vermont, Green Mountain received a proposal
from sixteen farmers in this area who were seeking
funding to build a beneficio (processing mill) and a
hydroelectric plant to provide the mill and surrounding
homes with needed electrical power. Working with Eco
Foundation of San Diego, Green Mountain provided the
necessary funding. The project which is nearing
completion, will meet the immediate needs of the farmers
and their families, and will fund additional projects in
the area. Eco Foundation will receive a few cents per
pound from the farmers for each pound of coffee processed
at the new beneficio, which, in turn, will be redirected
to other projects in this area where Organic Peruvian
Select is grown.
.................................
Brews Green Mountain Coffee
Coast-to-Coast
Green Mountain Coffee Roasters has
signed a five-year agreement to provide coffee to Mobil
Oil Corporation's new On The RunSM convenience
stores nationwide. Currently Green Mountain Coffee is
served at over 900 Mobil company-operated and Mobil
dealer locations throughout the Northeast, Florida,
Michigan, Illinois, Wisconsin, California and Arizona.
Mobil reports that there are 183 On The RunSM locations
in operation, with 1,200 planned by 2002. Green Mountain
Coffee will be introduced in all new On The
RunSM locations.
.................................

Early this fall, Green Mountain is
introducing two new limited edition coffees: Autumn
Harvest Blend and Holiday Blend.
Autumn Harvest Blend is a sumptuous and colorful blend of
light and dark roasts. It will be available from
mid-September through the end of October in 10-oz. valve
bags, and in master packs and 2.2-oz. fractional packages
for wholesale customers. Limited edition thermal travel
mugs and long-sleeved T-shirts have been designed to
support the introduction of this seasonal coffee.
Holiday Blend, which is a balanced, intricate blend of
light and dark Stewardship coffees, will be available in
10-oz. bags from mid-October through the New Year's
holiday.
Fresh
From the Roaster is published quarterly
by
Green Mountain Coffee Roasters
33 Coffee Lane,
Waterbury, VT 05676
|