Coffee -- Keurig Single Serve Brewer and GMRC, Inc. Martha Sheriff. University of Central Oklahoma

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1 Coffee Keurig Single Serve 1 Running head: Coffee -- Keurig Single Serve Brewer Coffee -- Keurig Single Serve Brewer and GMRC, Inc. Martha Sheriff University of Central Oklahoma

2 Coffee Keurig Single Serve 2 Abstract Keurig Single Cup Brewer coffee makers have become a huge aspect in the lives of coffee drinkers everywhere. The machines are only a part of GMRC, Green Mountain Coffee Roasters. GMRC has demonstrated throughout the years that a company can grow their business and be socially responsible taking coffee all the way from the tree to the cup. Statistics show that GMRC has grown their business in double digits for the last 27 consecutive quarters. Their latest numbers exceed that. They have proven through their GMRC Foundation that they have a desire to help people of underdeveloped countries create a sustainable business. They believe that the more money they make the more people they can help.

3 Coffee Keurig Single Serve 3 Coffee -- Keurig Single Serve Brewer and GMRC, Inc. Coffee Drinkers everywhere rejoiced at the invention of the Keurig Single Cup Brewing System. They could get the exact tasting cup of coffee each and every time. No more paying big bucks at that corner store to get a bold, robust cup of coffee or a great tasting cup of tea. It can all be done at home. But the Keurig Single Serve Brewing system is only part of the story. The company behind the Keurig system is a socially responsible company with success written all over it. They know how to make money and spend it wisely. They support their employees and reward good deeds. The difference they are making in under-developed countries and coffee growing communities is to be admired and copied. History GMRC started their coffee roasting business in a small café in Waitsfield, Vermont in The Arabica coffee was roasted onsite. Their unique approach to their business as well as their social responsibility has helped GMRC grow into one of the nation s leading companies in specialty coffees. Its specialty coffee side of the business has won many awards. Another side of the business is the Keurig Business unit which was purchased in They presently employ 1400 people in the US and other countries. Social Responsibility A Social and Environmental Responsibility Committee was formed in 2008 to oversee social and economic responsibility from the Board level. They partner with supply-chain communities to ensure a healthy and prosperous supply chain. They are in Africa, Latin America and Indonesia and in manufacturing in China. They have set up a Set of Vendor Expectations stating guidelines for their supply chain vendors to encourage sustainable business practices, labor practices and conditions, and health and safety.

4 Coffee Keurig Single Serve 4 Competition The competition for a good cup of coffee is stiff; however, GMCR does not seem to be concerned about it. Typically if they see a good company making a good product, they will try to work with that company and either put it in the supply chain or make them a subsidiary. Purchasing the company is also not out of the question. They have acquired several coffee companies to include Tully s Coffee Brand for West Coast distribution, Timothy s Coffee, Diedrich Coffee and Van Houtte Coffee in addition to their own Green Mountain Coffee. GMCR competes with Robert Bosch, Nestle, Mars, Bunn-O-Matic and Phillips Electronics among others. In specialty coffee, it competes with Dunkin' Brands, Starbucks, and Peet's Coffee & Tea. (Trefis, 2012). However, GRMC, Inc. was in negotiations in 2011 with Dunkin Brands and Starbucks to distribute and market K-cups and brewing systems through their stores. Boutique investment bank Detwiler Fenton says Wal-Mart plans to sell a new, lowerpriced single-serve coffee brewer this spring. (Gasparro, 2012). Target Market K-Cups are for everyone. One of the features of the Keurig Brewing System is that everyone gets whatever they want, be it dark roast coffee, medium roast coffee, all kinds of teas, both iced and hot, and hot chocolate and apple cider. There are over 200 different K-cup flavors on the market today. The whole family can use it and brewing one right after the other is not a problem. There is no residue left in the system. Each cup is consistent in quality each and every time.

5 Coffee Keurig Single Serve 5 What They are Doing Right Social Responsibility GMCR, Inc. is a social dynamo. Not only are they reducing their impact on the environment in the manufacturing process using energy reducing methods, they are doing everything they can to create sustainable businesses in coffee producing communities. GMCR has a very good reputation in these communities for being fair to the farmers and the farmers think they are great partners. They also advocate volunteerism with their employees through their CAFÉ program, Community Action for Employees. Each employee is given 52 hours per year paid time to volunteer. They are also rewarded for volunteering on their own time. The company has established a grant program, Dollars for Doers, that the employees can work toward. This gives grants to non-profit establishments in the community. GMCR is definitely interested in quality of life for their employees as well as supporting the community through benevolent deeds and social responsibility in their local communities as well as their supply chain communities. What They are Doing Wrong K-Cups not biodegradable While reducing their impact of the environment by embracing energy saving ideas and reducing packaging waste, there is still the issue of the K-cup. This challenge is due to the fact that in order to keep the contents inside the K-cup fresh, it needs to be able to keep out light, heat, water and oxygen. These are all the elements required for biodegradability. They are still trying to develop plastics that will be less harmful to the environment but still protect the contents of the K-cup. Conclusion With very few drawbacks, it looks like GMCR, Inc. has a firm grasp on what being in business is all about. They are continually increasing their distribution channels in order to grow

6 Coffee Keurig Single Serve 6 their market for the long term. Not only do they produce a quality product that makes a good profit, they are making a difference in the lives of their staff as well as the surrounding communities and their supply channel communities. This is what business should be. Their motto is Our purpose is to create the ultimate coffee experience in every life we touch, from tree to cup transforming the way the world understands business.

7 Coffee Keurig Single Serve 7 References CONVENIENT COFFEE, DSN Retailing Today 1/23/2006, Vol. 45 Issue 2, p /8p Gasparro, Annie, Wall Street Journal Blogs, 1/26/12, Green Mountain Coffee Roaster, Inc. Corporate Social Responsibility Report, FY 08, GMRC, Inc., September, 2009 Trefis Team, Forbes Magazine, 1/26/12, Green Mountain Coffee Roasters, Inc., Keurig, Inc., Barnes Reports: U.S. Coffee Tea Mfg. Industry-Industry and Market report, 2012