Press release from Business Wire
Green Mountain Coffee Roasters to Open Manufacturing Facility in Virginia
Friday, October 28, 2011
WATERBURY, Vt. (Business Wire) -- Green Mountain Coffee Roasters, Inc., (GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffeemakers, today announced it has chosen Isle of Wight County, Virginia as the future home of a new manufacturing and distribution facility. The Company has agreed to purchase a 330,000 square foot building on a 64 acre parcel of land in Isle of Wight County, Virginia for $15 million, with plans to invest up to $180 million over the initial five years of the facility's operations. Pending completion of its due diligence and finalization of incentive award agreements with the Commonwealth of Virginia and Isle of Wight County, GMCR expects to consummate the purchase in December 2011.
The Isle of Wight production facility will house coffee roasting, grinding, flavoring and packaging for GMCR's Specialty Coffee business unit. Within five years, it's estimated the new facility will have as many as 800 employees. GMCR has actively started to recruit for the new facility with commencement of site fit-up work planned for December 2011, pending final site due diligence.
“As our business continues to see steady growth, supported by the addition of new mass-appeal brands to the Keurig Single-Cup Brewing System, ensuring expanded portion pack production capacity is essential to our success,” said Scott McCreary, president of the Specialty Coffee business unit at GMCR. “Isle of Wight County offers a diverse and talented employee base as well as a multitude of geographic and economic benefits, making it a great location for our new facility.”
The Virginia Economic Development Partnership worked with Isle of Wight County to secure the project for Virginia. The Hampton Roads Economic Development Alliance was instrumental in the project. Governor Bob McDonnell approved a $4 million grant from the Governor's Opportunity Fund to assist Isle of Wight County with the project. GMCR may be eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. In addition through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support GMCR's recruitment and training activities.
“The Commonwealth of Virginia's appealing business incentives and the workforce potential of Isle of Wight County's robust local communities were critical factors in our new site selection,” said Jon Wettstein, vice president, supply chain operations of GMCR's Specialty Coffee business unit. “We are extremely thankful for the support and cooperation we have received from local, county and state officials to make this new site a reality, and look forward to ongoing collaboration among those constituents as we finalize the project details.”
GMCR currently operates production and distribution facilities in Castroville, California; Knoxville, Tennessee; Essex, Waterbury and Williston, Vermont; Sumner, Washington; Toronto, Ontario; and, Montreal, Quebec. The Company also conducts research and development activities in facilities in Reading, Wakefield and Woburn, Massachusetts; and in Waterbury, Vermont. The Company recently announced a substantial expansion to its facility in Essex, and expects to add a second new production and distribution facility in the U.S. in addition to the new site in Isle of Wight County during its current fiscal 2012.
About Green Mountain Coffee Roasters, Inc.
As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR), is recognized for its award-winning coffees, innovative Keurig Single-Cup brewing technology, and socially responsible business practices. GMCR supports local and global communities by offsetting 100% of its direct greenhouse gas emissions, investing in sustainably-grown coffee, and donating at least five percent of its pre-tax profits to social and environmental projects.
GMCR routinely posts information that may be of importance to investors in the Investor Relations section of its website, including news releases and its complete financial statements, as filed with the SEC. The Company encourages investors to consult this section of its website regularly for important information and news. Additionally, by subscribing to the Company's automatic email news release delivery, individuals can receive news directly from GMCR as it is released.
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 impact on sales and profitability of consumer sentiment in this difficult economic environment, the Company's success in efficiently expanding operations and capacity to meet growth, the Company's success in efficiently and effectively integrating the Company's acquisitions, the Company's success in introducing and producing new product offerings, the ability of lenders to honor their commitments under the Company's credit facility, competition and other business conditions in the coffee industry and food industry in general, fluctuations in availability and cost of high-quality green coffee, any other increases in costs including fuel, Keurig's ability to continue to grow and build profits with its roaster partners in the At Home and Away from Home businesses, the Company experiencing product liability, product recall and higher than anticipated rates of warranty expense or sales returns associated with a product quality or safety issue, the impact of the loss of major customers for the Company or reduction in the volume of purchases by major customers, delays in the timing of adding new locations with existing customers, the Company's level of success in continuing to attract new customers, sales mix variances, weather and special or unusual events, the impact of the inquiry initiated by the SEC and any related litigation or additional governmental investigative or enforcement proceedings, as well as other risks described more fully in the Company's filings with the SEC. Forward-looking statements reflect management's analysis as of the date of this release. The Company does not undertake to revise these statements to reflect subsequent developments, other than in its regular, quarterly earnings releases.
Green Mountain Coffee Roasters, Inc.
Suzanne DuLong, 802-882-2100
VP IR & Corporate Comm