Green Mountain Set to Raise
Keurig K-Cup Prices
At Corporate Essentials, we're usually very excited when Keurig K-Cups are in the mainstream news, and we get to pass that news along on our Java Cafe Blog.
This is not one of those times.
Last evening, Green Mountain Coffee Roasters (who make K-Cups carrying the brands Green Mountain Coffee, Timothy's Coffee, Caribou Coffee, Coffee People, Gloria Jean's, Diedrich and Tully's Coffee) announced that they will be increasing prices by 10 to 15 percent as of October 11, 2010.
This is not something that is totally unexpected due to the fact that the two biggest stories in the coffee industry in the last year have been the steadily rising cost of coffee and Green Mountain Coffee Roasters' acquisition of most of the leaders in Keurig K-Cup production.
What does this mean to you, the Corporate Essentials customer?
While it is still to early to give any very firm details on the type of price increase we will have to pass on to our customers, it is safe to say that you will be seeing higher prices on all Keurig K-Cups (more specific details will be posted as they become available).
This price increase will be something that you see across the board from Office Coffee Services to internet retailers to retail outlets to grocery stores (on all coffees, not just K-Cups).
Here is the official news release that was sent to us from Green Mountain Coffee Roasters last evening (9/7/2010), as well as some links to how the mainstream media is covering this news from Green Mountain:
GREEN MOUNTAIN COFFEE ROASTERS, INC. ANNOUNCES PRICE INCREASE
WATERBURY, Vt. (September 7, 2010) – Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), announced today a price increase on all K-Cup® portion packs for its Keurig®Single Cup brewing system sold in North America. The increase will occur across all sales channels and will be effective beginning October 11, 2010. Consumers could expect to see a purchase price increase of approximately 10 to 15 percent over the next several months as a result.
The increase is in response to several factors affecting the coffee industry including a sustained increase in the price of green coffee, differentials for premium quality coffees, increases in prices of other raw materials, as well as higher packaging and transportation costs. Over the past three months, green coffee prices have increased from $1.45 per pound to $1.90 per pound, or approximately 31 percent.
“Like others in the coffee industry, we have been closely monitoring rising green coffee costs and increases in other input costs like cocoa and packaging for several months,” said Scott McCreary, president of GMCR’s Specialty Coffee business unit. “While we have the flexibility to absorb some short-term cost increases, the sustained nature of the increases we’ve experienced over the past three months led us to conclude it is necessary to adjust our pricing.”
Green Mountain Set to Raise K-Cup Prices (in the news):
