The leading specialty coffee retailer, Green Mountain Coffee Roasters Inc. has restructured its board of directors and appointed Norman Wesley, former chief executive of Fortune Brands, as the new chairman of the board.
According to Reuters, Norman Wesley had already been working as Green Mountain’s independent director since August.
Earlier, Robert Stiller, founder and former chairman, and William Davis, lead director, were removed from their respective positions after allegations that they sold their shares to cover margin calls when the trading window was closed, violating the company’s internal trading policy.
Green Mountain also appointed A.D. “David” Mackay as independent Director. The interim chairman, Michael J. Mardy, will continue as Audit Committee Chairman.
A.D. Mackay had played important roles in his illustrious career. Before joining Green Mountain, he was the Chief Operating Officer of Kellogg Company (K - Analyst Report) from 2003 to 2006. He was also the Chief Executive Officer of the company from December 2006 to January 2011 and the company’s President from August 2003 to January 2011.
Mackay is being appointed at a time when the patents for the K cups have expired. It is expected that Mackay with his vast experience will help the company to find newer innovations related to single cup brewers. Moreover, with his knowledge of the international market, Mackay is expected to boost Green Mountain’s international presence.
Currently Green Mountain holds a Zacks #1 Rank (Strong Buy). The company reported robust fourth quarter 2012 results. Adjusted earnings (excluding amortization of identifiable intangibles) of 64 cents per share surpassed both the prior-year quarter earnings and the Zacks Consensus Estimate of 47 cents by 36% on the back of solid top-line growth, a lower tax rate and lower interest expense. However, two of the company’s patents expired in September 2012, which negatively impacted its K-cup sales.