Green Mountain Keeps Climbing

Green Mountain Coffee Roasters (GMCR - Analyst Report) announced that Keurig, a wholly-owned subsidiary of company, agreed with Jarden Corporation (JAH - Snapshot Report) to jointly develop and provide Keurig's patented K-Cup portion packs for Jarden's Mr. Coffee single-cup coffeemakers.

With the Mr. Coffee brand being a leader in at-home coffee brewing, Keurig's market dramatically expands from the institutional market (hotels, motels and offices) to the consumer market.

Jarden intends to commercialize the new Mr. Coffee coffeemakers in the U.S. and Canada under the Mr. Coffee brand, which will feature Keurig's branded brewing technology. The consumer retail customers will now have access to more than 200 varieties of Keurig's gourmet coffees, teas, and hot cocoa packaged in patented K-Cup portion packs. The financial terms of the agreement were not disclosed.

As you may recall, the Board of Directors of Green Mountain Coffee Roasters approved a three-for-two stock split, which was effective June 9th. During times of dramatic stock declines (we are still 41% below the S&P 500 closing peak of 1,565.15 on October 9, 2007), long-term investors should be on the outlook for stocks that are outperforming and those that exhibit fundamental stability and growth.

Green Mountain Coffee Roasters exemplifies this level of outperformance. In the time the S&P 500 has declined 41%, Green Mountain Coffee Roasters has rallied 120% from $25.68 to $56.53 (split-adjusted prices).

Headquartered in Waterbury, Vermont, Green Mountain Coffee Roasters is a growth company in the premium coffee and tea industry. The company is expanding geographically and by adding new relationships. It has generated 25 consecutive quarters of double-digit sales growth.