Food Business News - February 24, 2015 - (Page 20)

Keurig in transition After tough quarter, company is focused on its cold beverage platform, new products and a subscription model to maintain growth WATERBURY, VT. - Keurig Green Mountain, Inc. is in the midst of changing, transitioning from an upstart innovator to a category leader in the market for single-serve beverages in the United States and Canada. With the category leadership designation come many benefits, but also a few negatives, most notably elevated expectations. After several years of rapid growth, where the company sold approximately 20 million brewers to U.S. consumers, management must now address the expectations of the market for a similar level of performance while also fending off competitors that have built entire businesses around Keurig-compatible knockoff brewers and pods. The challenge of those expectations was on display Feb. 4, when the company announced its earnings results for the first quarter of fiscal 2015, ended Dec. 27, 2014. "Revenue came in below our expectations primarily due to a weaker-thanexpected holiday season for brewers, 2015 Summit Brian Kelley including the effect of the voluntary recall on certain Mini Plus brewers, and greater-than-expected retailer portion pack inventory reductions," said Brian Kelley, president and chief executive officer. "We believe these factors are transitory and, while the impact to the holiday season for our hot platform was disappointing, we remain very enthusiastic about our opportunity to grow and premiumize at-home beverages across both our hot and cold platforms." Net income for the quarter fell 3% compared with the first quarter of fiscal 2014 to $134,679,000, equal to 83c per share on the common stock. Sales for the quarter were basically flat, coming in at $1,386,358,000 compared with $1,386,670,000 during the same period of the previous year. With the earning announcement, the company's shares declined $5.90, or 5%, in Nasdaq trading Feb. 5. While the recall of the Mini Plus Brewers had a negative effect on earnings, it was also clear the company was challenged as it attempted to transition consumers from the original April 20 - 22, 2015 JW Marriott | Austin, Texas Accelerate the Path to Growth Spoiler Alert: Your Brand Will Grow Companies that attend IRI's 2015 Summit are guaranteed a one million percent return on their marketing investments. Ok, maybe not one million percent, but you will see growth. You'll get world-class insights from some of the best minds in CPG and retail. You'll hear about analytic capabilities that will boost your bottom line - and perhaps blow your mind. (Disclaimer: Don't say we didn't warn you.) Find out more at 20 FOODBUSINESS NEWS ® February 24, 2015

Table of Contents for the Digital Edition of Food Business News - February 24, 2015

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015