Green Mountain Coffee Roasters Valuation Essay

6315 Words Oct 30th, 2013 26 Pages
TABLE OF CONTENTS
Executive summary
Company overview
Business units Specialty coffee Keurig system Canadian Business Unit
Business Model Supply Chain Social Responsibility
Industry Environment
GMCR’s Competitive Advantage Quality, Convenience, and Choice
GMCR’s Growth Prospects National Sanitation Foundation (NSF) Approval Starbucks/Tazo Tea Strategic Partnership Snapple Partnership
SWOT Analysis Strengths Beverage Choice Options Sustainability Image Keurig Business Unit Weaknesses Single Supplier for Keurig Machines Single Order Processing Partnership SEC Investigation Opportunities Collaborations International Expansion Entry into Functional Drinks Market in the US Threats
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Specialty Coffee Business Unit (SCBU)
The SCBU is focuses on producing, sourcing and selling coffee, hot cocoa, teas, and other beverages through a variety of super markets, convenience stores, restaurants, and also directly to consumers. It also produces coffees, teas, and other beverages to be single serve cups in the form of K-cups of Vue packs to go along with the sales of the Keurig Single Cup Brewing system. The SCBU increased sales for fiscal year 2012 by $586.7million, 61% of total sales, $1,550.4million.
Keurig Business Unit (KBU)
The KBU focuses primarily on selling and marketing its patented single cup brewing systems for at home and away from home use and its accessories in the United States. KBU sells single cup servings of coffees, teas, cocoa, and other beverages for the Keurig Brewing System. The KBU focuses on households as well as offices and office distributers, and consumer grocery stores. It recognizes royalty income when any third party ships any of these products. The KBU recorded at increase by $494.6 million to a total of $1,683.3 million. A percentage raise of 42%.
Canadian Business Unit (CBU)
The CBU focuses on the production and selling of coffees, teas, and other beverages in a wide variety of packaging forms to Canada. It primarily sells to supermarkets, club stores such as Costco, offices, and restaurants. It only recently started
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