Seeking Alpha

Nuggets from Green Mountain Coffee Roasters' (GMCR +24.3%) conference call: 1) A nonplussed...

Nuggets from Green Mountain Coffee Roasters' (GMCR +24.3%) conference call: 1) A nonplussed attitude on Starbucks from execs is fairly evidence as they dance around the competitive impact on GMCR's business model. On the SBUX partnership: "...still multiyear from this current point in time." 2) On inventory jumps, execs say the total was fairly evenly split between raw materials and finished goods. 3) Is the company looking at a potential gold mine with online channels? In FY12, Keurig.com saw 23M visitors and placed 3M web orders. The conversion rate of 13% doesn't sound shabby compared to retail rivals. (transcript, slides)
Comments (1)
  • The key to GMCR and for the Longs to be smiling about is that it was mentioned on the call yesterday that no partner makes up more than 6% dependency. Only Newman is close to 6%. This means GMCR has spread out it's risk very nicely, and has positioned itself not to be hostage to any one supplier. That to me is soooooooooooo key going forward. On top of that, all their relationship have minimum of 2 years left in it, including SBUX. New relationships are being built as we speak.
    28 Nov 2012, 02:05 PM Reply Like
DJIA (DIA) S&P 500 (SPY)