Green Mountain Reorganizes Board
The leading specialty coffee retailer, Green Mountain Coffee Roasters Inc. (GMCR), welcomed three new members to its board of directors following the retirement of two of its board members — Lawrence Blanford, its former president and CEO, and Robert Stiller, the founder of GMCR.
Among the three new joiners, John D. Hayes was the former Executive Vice President and Chief Marketing Officer of American Express; Susan Saltzbart Kilsby was the Senior Advisor to Credit Suisse AG; and Robert A. Steele served the Healthcare Strategy for The Proctor & Gamble Company as Vice Chairman prior to joining Green Mountain.
While Mr. Steele’s appointment is effective from Jun 20, 2013, Mr. Hayes and Ms. Kilsby will take over their responsibilities in Green Mountain from Jul 1, 2013.
The new members on the board of Green Mountain with their profound experience in global business are expected to help the company move ahead in its growth trajectory with its Keurig single serve brewer. The Keurig business unit of Green Mountain is a pioneer and a leading manufacturer of gourmet single-cup brewing systems. It sells beverages produced by other business units of the company through At Home and Away From Home channels.
Green Mountain Coffee aims at popularizing the single-cup brewing system in America and has therefore, entered into several strategic distribution agreements to rope in popular brands like Dunkin’ Brands Group Inc. (DNKN), Starbucks Corporation (SBUX) and Unilever plc (UL) into its portion-pack system.
On May 9, 2013 Green Mountain, which currently carries a Zacks Rank #1 (Strong Buy), delivered robust 2013-second-quarter adjusted earnings (excluding amortization of identifiable intangibles and SEC-inquiry related expenses) of 93 cents per share that surpassed the year-ago quarter earnings of 64 cents by 45%. It also beat the Zacks Consensus Estimate of 73 cents by 27.4% on the back of solid top-line growth and lower interest expense.
The company has raised its adjusted earnings per share outlook and capital investment guidance for fiscal 2013, but reiterated its net sales growth and free cash flow estimates. Green Mountain expects its adjusted earnings in the range of $3.05 to $3.15 per share for the fiscal year, up from the prior guidance of $2.72 to $2.82 per share.
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