WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc., (GMCR) (NASDAQ: GMCR), a leader in specialty coffee and coffee makers with its innovative Keurig® brewing technology, today announced it would consolidate all of its Canadian coffee and portion pack production to its Montreal, Quebec facility. The Company expects to cease production at its Toronto, Ontario facility by March 5, 2014 affecting a total of 120 production and production support employees, or approximately 2% of its total workforce, whose positions will be eliminated.
"As we continue to grow, we also are assessing the effectiveness of our manufacturing, distribution, and logistics network across our U.S. and Canadian locations," said Brian P. Kelley, President and CEO of GMCR. "We have expanded the footprint of our Montreal facility more than 40% this fiscal year. After careful analysis of facility-specific operational costs and the Toronto facility’s inability to expand to accommodate future growth, it was clear that consolidating our Canadian-based production to our Montreal facility is the right business decision to support our strong and growing presence in Canada. We recognize the impact that this action has on our employees and their families and intend to support them through the transition process.”
GMCR will support affected employees through the transition process by offering outplacement services.
GMCR expects a one-time pre-tax charge related to this action in its fourth quarter fiscal year 2013. The Company expects the impact of the charge will be immaterial to its fiscal year 2013 results and did not update its previously issued financial outlook.
Following closure of the Toronto facility, GMCR will manufacture all of the licensed, Keurig Brewed® K-Cup® and Vue® packs for use in its Keurig® brewers in eight facilities in the US and Canada: Castroville, California; Knoxville, Tennessee; Windsor, Virginia; Essex, Waterbury and Williston, Vermont; Sumner, Washington; and Montreal, Quebec. In addition, the Company has offices and conducts research and development for its beverages and its Keurig® Single Cup systems in Waterbury, Vermont and Burlington, Reading and Wakefield, Massachusetts with a small team operating in Asia.
As of June 29, 2013, GMCR employed approximately 6,250 regular and temporary employees globally.
About Green Mountain Coffee Roasters, Inc.
As a leader in specialty coffee and coffee makers, Green Mountain Coffee Roasters, Inc. (GMCR) (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 investing in sustainably-grown coffee, and donating a portion 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, www.GMCR.com, 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 information contained in this filing, including statements concerning expected performance such as those relating to net sales, earnings, cost savings, acquisitions and brand marketing support, are “forward-looking statements”. Generally, these statements may be identified by the use of words such as “may,” “will,” “would,” “expect,” “should,” “anticipate,” “estimate,” “believe,” “forecast,” “intend,” “plan” and similar expressions intended to identify forward-looking statements. These statements may relate to: the expected impact of raw material costs and our pricing actions on our results of operations and gross margins, expected trends in net sales and earnings performance and other financial measures, the expected productivity and working capital improvements, the ability to maximize or successfully assert our intellectual property rights, the success of introducing and producing new product offerings, ability to attract and retain senior management, the impact of foreign exchange fluctuations, the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing, the expected results of operations of businesses acquired by us, our ability to issue debt or additional equity securities, our expectations regarding purchasing shares of our common stock under the existing authorizations, organizational efficiencies, and the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings.
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by external factors such as damage to our reputation or brand name, business interruptions due to natural disasters or similar unexpected events, actions of competitors, customer relationships and financial condition, the ability to achieve expected cost savings and margin improvements, the acquisition and integration of new businesses, fluctuations in the cost and availability of raw and packaging materials, successful execution of internal changes to the organizational and leadership structures, changes in regulatory requirements, and global economic conditions generally which would include the availability of financing, interest, inflation rates and investment return on retirement plan assets, as well as foreign currency fluctuations, risks associated with our information technology systems, the threat of data breaches or cyber-attacks, and other risks described in our filings with the SEC.
Actual results could differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise publicly, any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.