WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR - News), is communicating to customers this week price increases of approximately 8 to 12 percent on average across business channels and package types for coffee products sold by its Green Mountain Coffee division. These pricing changes will be effective on orders placed on or after May 5, 2008.The increase in pricing is in response to several factors affecting the coffee industry in general, including a sharp escalation in the price of coffee, increases in prices of other raw materials, and higher energy and transportation costs. In addition, costs for the high-quality coffees used by Green Mountain Coffee have risen even more than the general commodity (“C”) price.
The price increases will affect all of Green Mountain Coffee’s packaged coffees as well as its K-Cup® portion packs used in the Keurig® single-cup brewer, and will include streamlining the packaging of its K-Cups® into 24-count sleeves. Previously, K-Cups were packed in a mix of both 25- and 24-count sleeves.
Scott McCreary, Chief Operating Officer of the Green Mountain Coffee division, said: “Coffee costs have risen dramatically in recent weeks, with coffee now trading at a 10-year high. These industry factors have made it necessary to implement our first significant price increases since 2005. Adjusting prices is always a difficult decision. However, it is an important step for us to ensure our long-term supply of high-quality specialty coffee and maintain the excellence that our customers and consumers expect from Green Mountain Coffee.”
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