Augusta, Maine & Waterbury, Vt., June 14, 2010 – Pine State Trading Co., and the Specialty Coffee Business Unit of Green Mountain Coffee Roasters, Inc. (GMCR) (NASDAQ: GMCR), announced today that the companies have entered into an asset purchase agreement through which GMCR will transition direct customer support in its northeast region, including responsibility for sales representation, order management, delivery and equipment service, to Pine State Trading. The transaction is expected to close as of September 13, 2010. Terms of the agreement, which are not material to GMCR, were not disclosed.
“Since we first began our wholesale business, GMCR has maintained a direct store distribution model in the northeast region of the United States,” said Scott McCreary, president of the Specialty Coffee Business Unit of GMCR. “Changing customer requirements led us to conclude it was time to transition the region to a more scalable distributor-based model consistent with the way we operate nationally and in Canada.”
McCreary continued, “With its strong reputation for customer service in the region, Pine State Trading is an ideal partner for us, our customers, and our employees as we make this change. Together, we’ll work to ensure a seamless transition for customers.”
“We look forward to welcoming current GMCR customers and employees into the Pine State family,” said Paul Cottrell, president of Pine State Trading Co. “We expect our strong, existing relationship with GMCR and many of its customers will help to facilitate a smooth transition of its Regional Operations Centers’ business and customer support to Pine State Trading.”
GMCR currently operates regional operations centers in Southington, Conn.; Biddeford, Maine; Wilmington, Mass.; and Latham, N.Y. As part of the agreement, Pine State Trading will assume those operations.
Following completion of GMCR’s acquisition of Diedrich Coffee, Inc. on May 11, 2010, GMCR employed approximately 2,100 full-time employees in the U.S. and Canada through its Specialty Coffee and Keurig business units. GMCR expects 121 GMCR employees will be affected by the transition to Pine State Trading. The majority of those employees will either continue employment with GMCR or be offered employment with Pine State Trading upon closing of the transaction in accordance with the terms of the purchase agreement.
Green Mountain Coffee Roasters Inc. Forward-Looking Statements
Certain statements contained herein are not based on historical fact and are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those stated here. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the successful integration of its acquisition of Diedrich Coffee, Inc., as well as other risks described more fully in Green Mountain Coffee Roasters, Inc.’s filings with the SEC. Forward-looking statements reflect management’s analysis as of the date of this press release. Green Mountain Coffee Roasters does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.
About Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR)
As a leader in the specialty coffee industry, Green Mountain Coffee Roasters, Inc. is recognized for its award-winning coffees, innovative brewing technology, and socially responsible business practices. GMCR’s operations are managed through two business units. The Specialty Coffee business unit produces coffee, tea and hot cocoa from its family of brands, including Green Mountain Coffee®, Newman’s Own® Organics coffee, Tully’s Coffee®, Timothy’s World Coffee®, and Diedrich Coffee®. The Keurig business unit is a pioneer and leading manufacturer of gourmet single-cup brewing systems. K-Cup® portion packs for Keurig® Single-Cup Brewers are produced by a variety of licensed roasters and brands, including Green Mountain Coffee, Tully’s Coffee, Timothy’s, and Diedrich. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in Fair Trade Certified™ coffee, and donating at least five percent of its pre-tax profits to social and environmental projects. Visit www.gmcr.com for more information.
GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its web site, including news releases and its complete financial statements, as filed with the SEC. GMCR encourages investors to consult this section of its web site regularly for important information and news. Additionally, by subscribing to GMCR’s automatic email news release delivery, individuals can receive news directly from GMCR as it is released.
About Pine State Trading, Co.
Pine State Trading Co. is a leading full-service wholesale distributor to convenience stores throughout the Northeast and the largest beer, wine and spirits distributor in the State of Maine. Pine State is a third generation family owned business that has been in operation for almost 70 years. Currently employing over 700 people, Pine State Trading Co. has extensive experience in sales, marketing, warehousing and delivery systems; and uses cutting-edge technology to maximize productivity and customer service to their over 5,000 accounts. Visit www.pinestatetrading.com for more information.