GMCR Promotes Fair Trade Coffee

Zacks

Coffee maker Green Mountain Coffee Roasters Inc. (GMCR) is geared to promote the consumption of Fair Trade Certified coffee, and has partnered with Shoprite to make consumers aware of its benefits.

The two companies are promoting awareness about “Great Coffee, Good Vibes, Choose Fair Trade” campaign. The drive includes exclusive digital coupon, online video content and banner advertisements for Fair Trade coffee endorsement.

As part of the campaign, singer Kelly Clarkson visited a coffee farm in Peru, from where the company purchases Fair Trade Certified coffee. This was done for a first-hand experience of the positive impact that Fair Trade can have on coffee-farming communities.

Moreover, she will share her experience through ChooseFairTrade.com, Facebook, retail activations and digital advertising, among other platforms. The campaign included an exclusive, live Clarkson concert webcast on Facebook on Oct 10.

Moreover, a lottery among 3000 entrants was conducted on Oct 10 where the lucky winner was awarded a trip to New York with Clarkson.

Green Mountain boasts using 100% Fair Trade Certified Arabica coffee which is procured directly from farmers. This ensures that the farmers get Fair Trade minimum price and an additional premium for certified organic products. This helps the farmers to invest in the crops, their communities and their future. Moreover, the company is assured of high-quality coffee at lower price as there is no middleman involved.

In fiscal 2012, Green Mountain purchased 25% of coffee from Fair Trade certified sources. During the same time frame, coffee farmers earned more than $31.8 million, up 88% year over year, in Fair Trade premiums to invest in their communities and improve the quality of their harvests.

Such promotion of Fair Trade coffee will help GMCR boost sales in the coming quarters. Green Mountain makes continuous efforts to enhance its portfolio through product innovation and up gradation. Green Mountain is focusing on its products and putting its efforts to turn around its business after its K-cup patents expired in Sep 2012. Apart from rolling out new products, the company is upgrading its Keurig brewing system

Other Stocks to Consider

Green Mountain currently carries a Zacks Rank #2 (Buy). Other consumer staples stocks worth considering are Pinnacle Foods Inc. (PF), The JM Smucker Company (SJM) and Tree House Foods Inc. (THS). All these stocks carry a Zacks Rank #2.

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