Keurig Green Mountain, Inc. (GMCR)

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a personal beverage system company that has revolutionized the way consumers create and enjoy beverages, today announced its business results for the 13 weeks and 52 weeks ended September 26, 2015. “Our results for the quarter and the year reflect the competitive and dynamic marketplace in which we operate as well as the steps we are taking to position our Company for longer-term growth and value creation,” said Brian Kelley, Keurig’s President and CEO. “I’m particularly pleased with the benefits realized from our cost reduction efforts as well as our strong cash generation, both of which exceeded expectations in the fourth quarter. While we expect marketplace conditions will remain challenging in the near term, we have a stronger product line-up and price positioning as we enter the new holiday season.” Mr. Kelley continued, “Our priorities for 2016 are to reinvigorate our hot system and continue the disciplined rollout of our Kold system. We remain confident that our investments in the business and our multi-year productivity program will deliver long-term value to shareholders. Today’s announcement of the Board’s authorization of a 13% increase in our dividend underscores our confidence in our future prospects and continues our track record of delivering strong cash returns to our shareholders.” Fourth Quarter Fiscal 2015 Financial Review Thirteenweeks ended Thirteenweeks ended % Increase /(Decrease) Net Sales by Product Net sales of $1.0 billion decreased 13% versus the prior year period with declines in brewer sales and pod sales. The net sales decline includes an unfavorable impact from foreign currency exchange rates of approximately 2%. Sept 26, 2015 $ Increase(Decrease) % Increase(Decrease) Pods Pod net sales were driven by a 4% decrease in equivalent servings2 volume and an approximately 6% decrease due to product mix. This was partially offset by an approximately 2% increase due to net price realization.3 Foreign currency exchange rates negatively impacted pod net sales by approximately 2%. For the Company’s U.S. At Home business, pod volumes fell by 3%. The Company typically sees a build in customer and retailer inventory in the fourth quarter in advance of the holiday season. In the fourth quarter of 2014, the Company saw a much larger build in such inventories, due in part to the SAP transition in the first quarter of 2015. While shipments were impacted by this comparison, consumer demand for pods as measured by retail sales remains healthy. The Company estimates that retail unit sales of pods grew 7% in the fourth quarter of 2015. Brewers and Accessories For the quarter, 1.9 million Keurig® hot system brewers were sold including 1.8 million sold by Keurig with 0.1 million reported sold by Keurig’s licensed brewer partners. This brewer shipment number does not account for consumer returns. Brewer sales were driven by a 20% decrease in sales volume, an approximately 10% decrease due to product mix and an approximately 1% decrease due to net price realization. Foreign currency exchange rates negatively impacted brewer and accessory net sales by approximately 1%. Other Products Sales of other products were driven by the unfavorable impact of foreign exchange rates, the loss of a customer in our away from home channel and our decision to focus and allocate resources on our pod business. For the quarter, GAAP gross margin declined 530 basis points to 32.3% of net sales from 37.6% in the prior year period. Non-GAAP gross margin declined approximately 300 basis points to 34.7% of net sales from 37.6% in the prior year period. An $8.6 million obsolescence charge related to BOLT® brewers negatively impacted both GAAP and Non-GAAP gross margin. An abandonment and impairment of packaging lines negatively impacted GAAP gross profit by $24 million and was excluded from Non-GAAP gross profit. The following table quantifies the changes in gross margin period to period: Change from Q4Fiscal 2014 toQ4 Fiscal 2015 GAAP SG&A declined 20%, representing 17.0% of net sales for the quarter as compared to 18.5% in the prior year period. Non-GAAP SG&A decreased 20% representing 15.7% of sales for the quarter as compared to 16.9% in the prior year period. The decrease in Non-GAAP SG&A over the prior year period was primarily driven by declines in marketing expense and compensation expense. GAAP operating income declined 37%, representing 13.9% of net sales for the quarter, compared to 19.1% in the prior year period. Non-GAAP operating income declined 21%, representing 19.0% of net sales in the quarter, compared to 20.7% in the prior year period. The Company’s effective income tax rate was 32.3% for the quarter as compared to 35.2% in the prior year period. Diluted weighted average shares outstanding for the fourth quarter were 155.2 million, down 6% from 164.4 million in the prior year period. The reduction in shares outstanding from the prior year quarter was driven by the Company’s share repurchases under its previously announced share repurchase authorizations including a $700 million accelerated share repurchase (ASR) program, open market purchases and 10(b)5-1 plans and the previously announced repurchase of 5.2 million shares from Luigi Lavazza S.p.A. on March 3, 2015. GAAP diluted EPS declined 29% from the prior year period to $0.61. Non-GAAP diluted EPS declined 10% from the prior year period to $0.85. Fiscal Year 2015 Financial Review % Increase /(Decrease) Net Sales by Product For the year, net sales of $4.5 billion declined 4% over the prior year. The 4% net sales decline includes an unfavorable impact from foreign currency exchange rates of approximately 1%. $ Increase(Decrease) % Increase(Decrease) Pods For the year, approximately 10.5 billion equivalent pod servings were sold. Pod sales were driven by an increase of approximately 7% due to equivalent servings volume and a 2% increase due to net price realization partially offset by a roughly 7% decrease due to product mix. Foreign currency exchange rates negatively impacted pod net sales by approximately 1%. Brewers and Accessories For the year, 9.2 million Keurig® hot system brewers were sold including 8.7 million sold by Keurig with 0.5 million reported sold by Keurig’s licensed brewer partners. This brewer shipment number does not account for consumer returns. Brewer net sales were driven by a decrease of 16% due to sales volume, a 5% decline in net pricing and a roughly 1% decrease due to product mix. Foreign currency exchange rates negatively impacted brewer net sales by approximately 1%. Additionally, accessories net sales decreased by $15 million. Other Products Sales of other products were primarily driven by the unfavorable impact of foreign exchange rates as well as the loss of a customer in our away from home channel and our decision to focus and allocate resources on our pod business. For the year, GAAP gross margin declined 300 basis points to 35.6% of net sales from 38.6% in the prior year period. Non-GAAP gross margin declined 250 basis points to 36.1% of net sales from 38.6% in the prior year period. GAAP and Non-GAAP gross margin were negatively impacted by $36 million in obsolescence charges related to Rivo®, Bolt® and certain Keurig 2.0 brewers. Losses on abandonment and impairment of packaging lines negatively impacted GAAP gross profit by $24 million and was excluded from Non-GAAP gross profit. The following table quantifies the changes in gross margin period to period: Change fromFiscal 2014 toFiscal 2015 Impairment and abandonment of packaging lines GAAP SG&A declined 5%, representing 18.3% of sales for the year as compared to 18.5% in the prior year period. Non-GAAP SG&A decreased 5% representing 17.0% of sales for the year as compared to 17.3% in the prior year period. The decrease in Non-GAAP SG&A over the prior year period was driven by declines in compensation expense and marketing expense partially offset by higher research and development expenses and significant investments in the Keurig KOLDTM beverage ®system. GAAP operating income declined by 19%, representing 16.9% of net sales for the year, down 320 basis points from 20.1% in the prior year period. Non-GAAP operating income decreased by 14%, representing 19.0% of net sales in fiscal year 2015, down 230 basis points from 21.3% in the prior year. The Company’s effective income tax rate was 33.6% for the year as compared to 35.4% in the prior year. Diluted weighted average shares outstanding for the full year were 158.9 million, down from 159.6 million in 2014. The reduction in shares outstanding was driven by the Company’s share repurchases under its share repurchase program including a $700 million accelerated share repurchase (ASR) program, open market purchases and 10(b)5-1 plans and the previously announced repurchase of 5.2 million shares from Luigi Lavazza S.p.A. on March 3, 2015, partially offset by dilution from the Coca-Cola and Lavazza equity transactions4. GAAP diluted EPS decreased 16% from the prior year period to $3.14; non-GAAP diluted EPS decreased 10% from the prior year period to $3.56. Balance Sheet & Cash Flow Highlights (1) Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. Productivity Program The Company previously announced a multi-year productivity program and continues to expect $300 million in savings over the next three years with approximately $100 million of savings in fiscal 2016. The Company incurred $16 million in pre-tax charges related to its restructuring and productivity programs in its fiscal fourth quarter 2015 of which $12 million are expected to result in cash expenditures. Pre-tax restructuring charges associated with the productivity program are expected to be $14-$19 million in fiscal year 2016 of which approximately $10-14 million are expected to be cash expenditures. Share Repurchases Pursuant to the Company’s share repurchase program, the Company repurchased 9.5 million shares in fiscal year 2015 at a cost of $1,033 million. This includes 1.99 million shares repurchased in the fiscal fourth quarter at a cost of $115 million. From the end of the Company’s fiscal year 2015 through November 18, 2015, the Company repurchased an additional 4.4 million shares at a cost of $235 million. As of November 18, 2015, the Company has $914 million remaining on its share repurchase authorization. Dividend Declaration Reflecting its commitment to return capital to shareholders and its expectation for continued strong cash flow generation, the Company announced a 13% increase in its indicated annualized dividend to $1.30 per share from $1.15. The increase will take effect with the February 16, 2016 quarterly dividend payment of $0.325 declared by the Board payable to shareholders of record as of the close of business on January 15, 2016. Business Outlook and Other Forward-Looking Information The Company provided its outlook for fiscal year 2016: Fiscal Year 2016 Currency neutral net sales growth of flat to low single digits compared to fiscal year 2015. At current exchange rates, foreign currency is expected to negatively impact net sales growth by approximately 1%. An annual effective tax rate of approximately 33.0 % to 33.5%. Non-GAAP earnings per share of $3.25-$3.45. This includes an expected $100 million in productivity savings, additional share repurchase, an approximately $0.16 negative impact from foreign currency at current exchange rates. The midpoint of the guidance range includes a pre-tax estimated income statement loss of $125 million from the Keurig® KOLDTM beverage system. Non-GAAP EPS guidance excludes any restructuring or one-time charges related to the Company’s productivity initiative. Free cash flow in the range of $420 million to $500 million. Capital investment in the range of $225 million to $275 million, with total depreciation and amortization expense of $290 million. Conference Call and Webcast Keurig will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, November 18, 2015. The call is accessible via live webcast from the events section of the Investor Relations portion of the Company’s website at http://investor.keuriggreenmountain.com/events.cfm. The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, passcode 784384 from 9:00 p.m. ET on November 18, 2014 through 9:00 p.m. ET on Monday, November 23, 2014. Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude legal and accounting expenses related to the pending securities and stockholder derivative class action litigation, pending antitrust litigation against the Company, and the now concluded SEC inquiry; non-cash acquisition-related items such as amortization of identifiable intangibles; fixed asset impairment and abandonment write-downs; and restructuring and productivity expenses related to our multi-year productivity program, each of which include adjustments to show the tax impact of excluding these items. In each case these amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation” table that accompanies this document for a full reconciliation of the Company’s GAAP to non-GAAP results. About Keurig Green Mountain, Inc. Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR) is reimagining how beverages can be created, personalized, and enjoyed, fresh-made in homes and workplaces. We are a personal beverage system company revolutionizing the beverage experience through the power of innovative technology and strategic brand partnerships. With an expanding family of more than 80 beloved brands and more than 575 beverage varieties, our Keurig® hot and Keurig KOLD™ beverage systems deliver great taste, convenience, and choice at the push of a button. As a company founded on social responsibility, we are committed to using the power of business to brew a better world through our work to build resilient supply chains, sustainable products, thriving communities, and a water-secure world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig products: www.keurig.com, www.keurig.ca, www.keurig.co.uk. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Forward-Looking Statements Certain information in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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, estimates of future financial results, the expected productivity program charges and working capital improvements, the success of introducing and producing new product offerings, 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, projections for future capital expenditures, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, the impact of pending and future stockholder claims and other litigation, and the impact of antitrust litigation pending against the Company in the United States and Canada. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors" and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2015 Annual Report filed on Form 10-K, elsewhere in that report and those described from time to time in our future reports filed with the Securities and Exchange Commission. 1 Certain items in this press release are designated as “Non-GAAP” and represent non-GAAP financial measures that exclude certain items. Please see the attached “GAAP to Non-GAAP Reconciliation” to find disclosure and reconciliation of non-GAAP financial measures, as well as a discussion in this release as to why the Company is presenting such non-GAAP measures. 2 Equivalent servings translates our multiple pod sizes, including K-Cup®, Vue®, K-CarafeTM and Bolt® pods , into a common serving. 3 Numbers do not sum due to rounding. 4 The Company issued 16.7 million shares as part of the transaction with The Coca-Cola Company, which closed February 27, 2014 and another 1.4 million shares as part of the transaction with Luigi Lavazza S.p.A., which closed April 17, 2014. KGM-G, KGM-US, KGM-CA September 26,2015 September 27,2014 KEURIG GREEN MOUNTAIN, INC. Thirteenweeks ended Thirteenweeks ended Fiscal 2015 Fiscal 2014 KEURIG GREEN MOUNTAIN, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share data) After tax: (1) Represents loss on impairment of the Company's Bolt® fixed assets and other write-downs related to abandonment of packaging lines, classified as cost of sales. (2) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense. (4) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (5)Represents restructuring and productivity initiative expenses related to the Company's multi-year productivity initiative. KEURIG GREEN MOUNTAIN, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share data) (1) Represents loss on impairment of the Company's Bolt® fixed assets and other write-downs related to abandonment of packaging lines, classified as cost of sales. (2) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense. (4) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (5) Represents restructuring and productivity initiative expenses related to the Company's multi-year productivity initiative.

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced its business results for the 13 weeks ended June 27, 2015. “While we are not pleased with our revenue growth, we delivered earnings at the high end of our previous guidance,” commented President and CEO, Brian Kelley. “We are taking decisive actions to adapt and compete more effectively in today’s rapidly-evolving, dynamic marketplace. We are implementing a multi-year productivity program that we are confident will enhance our operational effectiveness and enable us to fund incremental investment in innovation and brand building. In addition, our new Keurig K200 brewer is off to a strong start with its introduction this past quarter. We believe this addition, as well as the enhancements we’ve made to our entire At Home brewer line up will allow for continued growth in our U.S. installed base. We continue to believe that our hot system has the potential to reach more than 50 million U.S. households over time --more than double its size today. In addition, the upcoming launch of our Keurig KOLD system creates an even larger opportunity for long-term growth and value creation.” Mr. Kelley continued, “Going forward, we will continue to maintain a strong, flexible capital structure and balance sheet to enable us to return significant value to our shareholders as we continue to invest in the business. Underscoring our commitment to delivering value to our shareholders, today we announced that our Board authorized an additional $1 billion share repurchase which adds to our existing plan. With innovative technology and a premier beverage brands portfolio, Keurig continues to be a recognized leader in the industry and we are confident we will continue our legacy of delivering disruptive and innovative products for the benefit of all Keurig constituents.” Third Quarter Fiscal 2015 Financial Review %Change %Change Net Sales by ProductNet sales of $970 million decreased 5% versus the prior year period with declines in brewer sales and pod sales. Foreign currency exchange rates negatively impacted sales by approximately 1.5 percentage points. Excluding the impact of foreign currency exchange rates, total net sales declined 4% and total Keurig beverage system sales declined 4% compared to the prior year period. Net sales for the domestic segment declined 4% in the quarter while sales in the Canada segment declined 14% on a reported basis and declined 3% excluding the impact of foreign currency exchange rates. Total pod net sales declined 1% in the quarter while brewers and accessories net sales declined 26%. Other product net sales declined 12% compared to the prior year period. $ Increase(Decrease) % Increase(Decrease) Pods The 1% decrease in the quarter in pod net sales compared to the prior year period was due to a 5% increase in equivalent servings2 volume and a 3 percentage point increase due to net price realization. This was offset by an 8 percentage point decrease due to product mix and a roughly 1 percentage point negative impact from foreign currency exchange rates. Brewers and Accessories For the quarter, 1.36 million Keurig® system brewers were sold including 1.3 million sold by Keurig and 0.05 million reported sold by Keurig’s licensed brewer partners. This brewer shipment number does not account for consumer returns. The 26% decline in Keurig’s brewer and accessory net sales compared to the prior year period was primarily due to a 18% decline in brewer sales volume, driven by high levels of inventory at retail and timing of restocking the MINI Plus brewer. Brewer net price realization declined by 6 percentage points due to promotional efforts to reduce brewer inventory levels. Brewer mix negatively impacted brewer sales by 2 percentage points. Foreign currency exchange rates negatively impacted brewer net sales by roughly 1 percentage point. Additionally, accessory net sales declined 22% compared to the prior year period. Other Products Sales of other products declined 12% during the quarter from the prior year period primarily due to the continuing demand shift from traditional coffee package formats to pods and the unfavorable impact of foreign currency exchange rates. For the quarter, gross margin declined 750 basis points versus prior year to 36.0% of net sales. The table below quantifies the changes in gross margin period to period. Obsolescence of finished goods includes an $18 million charge related to Keurig 2.0 brewers in the third quarter which impacted gross margin by 190 bps. Changefrom Q32014 to Q32015 GAAP SG&A declined 12%, representing 19.4% of net sales for the quarter as compared to 20.9% in the prior year period. Non-GAAP SG&A decreased 14% representing 17.8% of sales for the quarter as compared to 19.7% in the prior period. The decrease in SG&A over the prior year period was driven by lower incentive compensation expense, lower marketing expense and a reduction in professional fees. GAAP operating income declined 30%, representing 16.6% of net sales for the quarter, compared to 22.6% in the prior year period. Non-GAAP operating income declined 28%, representing 18.2% of net sales in the quarter, compared to 23.8% in the prior year period. The Company’s effective income tax rate was 30.2% for the quarter as compared to 33.9% in the prior year period. Diluted weighted average shares outstanding for the third quarter were 155.6 million, down 6% from 164.7 million in the prior year period. The reduction in shares outstanding was driven by the Company’s share repurchases under its previously announced share repurchase authorizations including a $700 million accelerated share repurchase (ASR) program, open market purchases and 10(b)5-1 plans and the previously announced repurchase of 5.2 million shares from Luigi Lavazza S.p.A. on March 3, 2015. GAAP diluted EPS declined 22% from the prior year period to $0.73. Non-GAAP diluted EPS declined 19% from the prior year period to $0.80. Excluding the impact of foreign currency, non-GAAP diluted EPS decreased approximately 17% versus the prior year period. Balance Sheet & Cash Flow Highlights (1) Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. Share Repurchase On July 31, 2015, the Board of Directors approved a new share repurchase authorization of up to an additional $1 billion over the next two years, at such times and prices as determined appropriate by the Company's management in collaboration with the Board of Directors. The shares will be purchased with cash on hand, cash from operations, and funds available through our existing credit facility. Productivity Program The Company announced a multi-year productivity program intended to reduce structural costs and streamline organization structures to drive efficiency. The program is expected to generate approximately $300 million in savings over the next three years with approximately $100 million of savings in fiscal 2016. The program is expected to reduce the company’s workforce by approximately 5%. Implementation of the productivity program is expected to result in cumulative pre-tax charges of $30-$35 million, beginning with an approximately $26 million charge in the fourth quarter of fiscal 2015. Of the total anticipated initial charge, approximately $20 million is expected to be cash expenditures. Business Outlook and Other Forward-Looking Information The Company updated its outlook for fiscal year 2015, provided its outlook for the fourth quarter and provided its preliminary outlook for fiscal year 2016. Fiscal Year 2015 Outlook Net sales decline of low-single to mid-single-digits compared to fiscal year 2014 An annual effective tax rate of approximately 34.5% to 35% Non-GAAP EPS decline in the low-teens. This outlook: Includes an estimated $0.13 headwind from foreign currency exchange Excludes any restructuring or one-time charges related to the Company’s productivity initiative Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an estimated $0.13 headwind from foreign currency exchange Excludes any restructuring or one-time charges related to the Company’s productivity initiative Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Free cash flow in the range of $150 million to $200 million Capital investment in the range of $400 million to $450 million Fourth Quarter 2015 Net sales growth decline of low-teens compared to the fourth quarter of fiscal year 2014 An effective tax rate of approximately 36% to 36.5% Non-GAAP EPS in a range of $0.70 to $0.75 which: Includes an estimated $0.03 headwind from foreign currency exchange Excludes any restructuring or one-time charges related to the Company’s productivity initiative Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an estimated $0.03 headwind from foreign currency exchange Excludes any restructuring or one-time charges related to the Company’s productivity initiative Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Fiscal Year 2016 Outlook Based upon its preliminary estimates for fiscal 2016, the Company expects its hot business to deliver modest non-GAAP earnings per share growth over fiscal 2015 inclusive of the expected productivity savings. The Company expects that its investment in Keurig KOLD™ in 2016 will be at least $100 million and could be higher depending largely on pod manufacturing efficiencies and channel mix. Our fiscal year 2016 non-GAAP EPS excludes any restructuring or one-time charges related to the productivity program. With regard to the first quarter of fiscal 2016, the Company expects non-GAAP earnings per share to decline versus the prior year quarter as the Company ships more hot appliances year over year, ships KOLD appliances, ramps production on KOLD pods and faces a significant coffee cost headwind in the first quarter of fiscal 2016. The Company will update its outlook and provide more details related to fiscal 2016 on its fourth quarter earnings announcement. Dividend Declaration Keurig's Board has declared a regular quarterly cash dividend of $0.2875 per share of the Company's common stock. The quarterly cash dividend will be paid on October 29, 2015 to shareholders of record as of the close of business on September 29, 2015. 1 Certain items in this press release are designated as “Non-GAAP” and represent non-GAAP financial measures that exclude certain items. Please see the attached “GAAP to Non-GAAP Reconciliation” to find disclosure and reconciliation of non-GAAP financial measures, as well as a discussion in this release as to why the Company is presenting such non-GAAP measures. 2 Equivalent servings translates our multiple pod sizes, including K-Cup®, Vue® K-Carafe® and Bolt® pods, into a common serving. Conference Call and WebcastKeurig will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, August 5, 2015. The call is accessible via live webcast from the events section of the Investor Relations portion of the Company’s website at http://investor.keuriggreenmountain.com/events.cfm. The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, passcode 6958877 from 9:00 p.m. ET on August 5, 2015 through 9:00 p.m. ET on Monday, August 10, 2015. Use of Non-GAAP Financial MeasuresIn addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude legal and accounting expenses related to the pending securities and stockholder derivative class action litigation, pending antitrust litigation against the Company, and the now concluded SEC inquiry; and non-cash acquisition-related items such as amortization of identifiable intangibles, each of which include adjustments to show the tax impact of excluding these items. In each case these amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation” table that accompanies this document for a full reconciliation of the Company’s GAAP to non-GAAP results. About Keurig Green Mountain, Inc.As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Forward-Looking StatementsCertain information in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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, estimates of future financial results, the expected productivity program charges and working capital improvements, the success of introducing and producing new product offerings, 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, projections for future capital expenditures, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, the impact of pending and future stockholder claims and other litigation, and the impact of antitrust litigation pending against the Company in the United States and Canada. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors" and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2014 Annual Report filed on Form 10-K, elsewhere in that report and those described from time to time in our future reports filed with the Securities and Exchange Commission. KGM-G June 27,2015 September 27,2014 Receivables, less uncollectible accounts and return allowances of $36,186 and $66,120at June 27, 2015 and September 27, 2014, respectively Preferred stock, $0.10 par value: Authorized - 1,000,000 shares; No shares issued oroutstanding Common stock, $0.10 par value: Authorized - 500,000,000 shares; Issued andoutstanding - 154,021,260 and 162,318,246 shares at June 27, 2015 andSeptember 27, 2014, respectively 2015 2014 2015 2014 Fixed asset purchases included in accounts payable and not disbursedat the end of each period KEURIG GREEN MOUNTAIN, INC.GAAP to Non-GAAP Reconciliation(Dollars in thousands, except per share data) * Does not sum due to rounding (1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense. (1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense.

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced its business results for the 13 weeks ended March 28, 2015. “We are pleased to report that our earnings per share in the second quarter were in line with our guidance. Our top-line growth, however, was below our expectations primarily due to the slower than expected transition to the Keurig 2.0 system. We are taking actions to reduce brewer inventories, enhance our 2.0 brewer packaging to better communicate our extensive brand variety and step up innovation on our owned brands,” said President and CEO, Brian Kelley. “Although we are lowering our guidance to reflect the impact of near-term challenges related to this complex product transition, we remain highly confident in our long term strategy for the Keurig hot system and continue to believe there is a significant runway of opportunity. Combined with the upcoming launch of our Keurig KOLD system, we expect the Keurig brand to further expand and globalize while continuing to transform the premium home beverage experience for consumers," continued Kelley. Second Quarter Fiscal 2015 Financial Review %Change %Change Note: See complete GAAP to Non-GAAP Reconciliation tables attached to this release. Net Sales by Product Net sales of $1.1 billion increased 2% versus the prior year period primarily driven by growth in sales of pods (previously referred to as portion packs) partially offset by lower brewer and accessory sales. Foreign currency exchange rates negatively impacted sales by approximately 1 percentage point. Excluding the impact of foreign currency exchange rates, total net sales grew 3% and total Keurig beverage system sales grew 4% compared to the prior year period. Net sales for the domestic segment increased 3% in the quarter while sales in the Canada segment declined 5% on a reported basis and grew 6% excluding the impact of foreign currency exchange rates. Total pod net sales increased 7% in the quarter while brewers and accessories net sales declined 23%. Other product net sales declined 5% compared to the prior year period. $ Increase(Decrease) % Increase(Decrease) Pods The 7% increase in the quarter in pod net sales compared to the prior year period was due to a 14% increase in equivalent servings2 volume and a 1 percentage point increase due to net price realization. This was partially offset by a 7 percentage point decrease due to product mix and a roughly 1 percentage point negative impact from foreign currency exchange rates. Brewers and Accessories For the quarter, 1.4 million Keurig® system brewers were sold including 1.3 million sold by Keurig and 0.1 million reported sold by Keurig’s licensed brewer partners. This brewer shipment number does not account for consumer returns. The 23% decline in Keurig’s brewer and accessory net sales compared to the prior year period was primarily due to a 22% decline in brewer sales volume, driven by high inventory levels at retail which negatively impacted shipments in the quarter and a difficult year ago comparison. Brewer net price realization declined by 1 percentage point and foreign currency exchange rates negatively impacted brewer net sales by roughly 1 percentage point. This was partially offset by 2 percentage points of positive brewer mix. Additionally, accessory net sales declined 31% compared to the prior year period. Other Products Sales of other products declined 5% during the quarter from the prior year period primarily due to the continuing demand shift from traditional coffee package formats to pods. For the quarter, gross margin declined 80 basis points versus prior year to 40.7% of net sales. The table below quantifies the changes in gross margin period to period. Obsolescence of finished goods includes a $10 million charge related to the Rivo® brewer in the second quarter which negatively impacted gross margin by 90 bps. Change from Q2 2014 toQ2 2015 GAAP SG&A increased 9%, representing 19.1% of net sales for the quarter as compared to 17.9% in the prior year period. Non-GAAP SG&A increased 8% representing 17.8% of sales for the quarter as compared to 16.8% in the prior period. The increase in SG&A over the prior year period was driven by higher expenses associated with information technology and supporting our call centers and higher research and development expenses which include significant investments in the forthcoming Keurig® KOLD™ system. GAAP operating income declined 6%, representing 21.6% of net sales for the quarter, compared to 23.6% in the prior year period. Non-GAAP operating income declined 5%, representing 22.9% of net sales in the quarter, compared to 24.6% in the prior year period. The Company’s effective income tax rate was 34.8% for the quarter as compared to 35.8% in the prior year period. Diluted weighted average shares outstanding for the second quarter were 160.6 million, up 2% from 157.5 million in the prior year period as a result of 16.7 million shares and 1.4 million shares issued in connection with the Coca-Cola and Lavazza Equity Transactions3, respectively. Such transaction-related dilution was offset, in part, by the Company’s share repurchases under its previously announced share repurchase authorizations including a $700 million accelerated share repurchase (ASR) program, open market purchases and 10(b)5-1 plans and the previously announced repurchase of 5.2 million shares from Luigi Lavazza S.p.A. on March 3, 2015. GAAP diluted EPS declined 6% from the prior year period to $0.97. Non-GAAP diluted EPS declined 5% from the prior year period to $1.03. Non-GAAP EPS was negatively impacted by $0.08 per share dilution from the Coca-Cola and Lavazza Equity Transactions net of the ASR program repurchases and March 2015 Lavazza repurchase, both as discussed below, and $0.05 per share negative impact from foreign currency exchange. This compares to last year’s second quarter non-GAAP EPS negative impact of $0.04 per share dilution from the Coca-Cola and Lavazza Equity Transactions net of the ASR program repurchases. When excluding the impact of dilution and foreign currency, non-GAAP diluted EPS increased approximately 4% versus the prior year period. Balance Sheet & Cash Flow Highlights (1) Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. Share Repurchases During the second quarter of fiscal 2015, the Company repurchased a total of 7.0 million shares at a cost of $837 million. From the inception of its Board authorized share repurchase program through the end of the second quarter, the Company repurchased a total of 25.9 million shares at an average price of $86.17 for a total cost of $2.2 billion. This was achieved through a combination of the ASR program, open market purchases and 10(b)5-1 plans, and the previously announced repurchase of 5.2 million shares from Luigi Lavazza S.p.A. Dividend Declaration Keurig's Board has declared a regular quarterly cash dividend of $0.2875 per share of the Company's common stock. The quarterly cash dividend will be paid on July 30, 2015 to shareholders of record as of the close of business on June 30, 2015. Business Outlook and Other Forward-Looking Information The Company updated its outlook for fiscal year 2015 and provided its outlook for the third quarter: Fiscal Year 2015 Net sales growth flat to up low-single digits compared to fiscal year 2014 An annual effective tax rate of approximately 34.5% to 35% Non-GAAP EPS decline in the mid-single digits. This outlook: Includes an estimated $0.14 headwind from foreign currency exchange Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an estimated $0.14 headwind from foreign currency exchange Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Free cash flow in the range of $120 million to $170 million Capital investment in the range of $425 million to $475 million Third Quarter 2015 Net sales growth flat to up low-single digits compared to the third quarter of fiscal year 2014 An effective tax rate of approximately 32% to 32.5% Non-GAAP EPS in a range of $0.75 to $0.80 which: Includes an estimated $0.02 headwind from foreign currency exchange Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an estimated $0.02 headwind from foreign currency exchange Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation 1 Certain items in this press release are designated as “Non-GAAP” and represent non-GAAP financial measures that exclude certain items. Please see the attached “GAAP to Non-GAAP Reconciliation” to find disclosure and reconciliation of non-GAAP financial measures, as well as a discussion in this release as to why the Company is presenting such non-GAAP measures. 2 Equivalent servings translates our multiple pod sizes, including K-Cup®, Vue® K-Carafe® and Bolt® pods, into a common serving. 3 The Company issued 16.7 million shares as part of the transaction with The Coca-Cola Company, which closed February 27, 2014 and another 1.4 million shares as part of the transaction with Luigi Lavazza S.p.A, which closed April 7, 2014 (collectively the Coca-Cola and Lavazza Equity Transactions). Conference Call and Webcast Keurig will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, May 6, 2015. The call is accessible via live webcast from the events section of the Investor Relations portion of the Company’s website at http://investor.keuriggreenmountain.com/events.cfm. The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, passcode 5171920 from 9:00 p.m. ET on May 6, 2015 through 9:00 p.m. ET on Monday, May 11, 2015. Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude legal and accounting expenses related to the pending securities and stockholder derivative class action litigation, pending antitrust litigation against the Company, and the now concluded SEC inquiry; and non-cash acquisition-related items such as amortization of identifiable intangibles, each of which include adjustments to show the tax impact of excluding these items. In each case these amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation” table that accompanies this document for a full reconciliation of the Company’s GAAP to non-GAAP results. About Keurig Green Mountain, Inc. As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Forward-Looking Statements Certain information in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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 success of introducing and producing new product offerings, 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, projections for future capital expenditures, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, the impact of pending shareholder litigation, and the impact of antitrust litigation pending against the Company in the United States and Canada. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors" and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2014 Annual Report filed on Form 10-K, elsewhere in that report and those described from time to time in our future reports filed with the Securities and Exchange Commission. KGM-G March 28, 2015 September 27, 2014 Thirteen weeks ended Twenty-six weeks ended March 28, 2015 March 29, 2014 March 28, 2015 March 29, 2014 (1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense. (1) Represents legal and accounting expenses related to the SEC inquiry and pending securities and stockholder derivative class action litigation classified as general and administrative expense. (2) Represents the amortization of intangibles related to the Company’s acquisitions classified as general and administrative expense. (3) Represents legal expenses related to antitrust litigation classified as general and administrative expense.

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced its business results for the 13 weeks ended December 27, 2014. “Keurig is pleased to deliver earnings per share in line with our outlook. Revenue came in below our expectations primarily due to a weaker than expected holiday season for brewers, including the effect of the voluntary recall on certain MINI Plus brewers, and greater than expected retailer portion pack inventory reductions. 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,” said President and CEO, Brian Kelley. First Quarter Fiscal 2015 Financial Review Net Sales by Product Net sales of $1.4 billion were in-line with the prior year quarter primarily driven by lower brewer and accessory sales partially offset by growth in portion packs. Net sales growth in the quarter was negatively impacted by approximately 3 percentage points due to certain retailer customers ordering portion packs more aggressively in the fourth quarter of fiscal year 2014 ahead of our SAP implementation and approximately 1 percentage point from foreign currency exchange rates. Excluding the impact of foreign currency exchange rates and SAP pre-ordering, total net sales grew approximately 4% and total Keurig beverage system sales grew approximately 5%. Net sales for the U.S. segment increased 2% while sales of the Canada segment declined 12% on a reported basis and 6% excluding the impact of foreign currency exchange rates. Total portion pack net sales increased 9% in the quarter while brewers and accessories net sales declined 18%. Total net sales growth was negatively impacted by a 17% decrease in other product net sales in the quarter. $ Increase(Decrease) % Increase(Decrease) Portion Packs The 9% increase in portion pack net sales compared to the prior year period was due to a 13% increase in equivalent servings2 volume and a 2 percentage point increase due to net price realization partially offset by a 6 percentage point decrease due to product mix and a roughly 1 percentage point negative impact from foreign currency exchange rates. Brewers and Accessories For the quarter, 4.5 million Keurig® system brewers were sold including 4.3 million sold by Keurig and 0.2 million reported sold by Keurig’s licensed brewer partners. This brewer shipment number does not account for consumer returns. The 18% decline in Keurig’s brewer and accessory net sales compared to the prior year period was due to a 12% decline in brewer sales volume, driven largely by weaker sales of MINI Plus brewers. Brewer net price realization declined by 8 percentage points and foreign currency exchange rates negatively impacted net sales by roughly 1 percentage point. This was partially offset by 3 percentage points of positive brewer mix. Additionally, accessory net sales declined 15% compared to the prior year period. Other Products Sales of other products declined $14 million, or 17%, during the quarter from the prior year period primarily due to the continuing demand shift from traditional coffee package formats to portion packs. For the quarter, gross margin was even with prior year at 33.5% of net sales. The following table quantifies the changes in gross margin period to period: Change fromQ1 2014 toQ1 2015 GAAP SG&A increased 5%, representing 17.9% of net sales for the quarter as compared to 17.1% in the prior year period. Non-GAAP SG&A increased 4% representing 16.9% of sales for the quarter as compared to 16.3% in the prior period. The increase in SG&A was driven by higher research and development expenses including significant investments in the forthcoming Keurig cold system. GAAP operating income declined 5%, representing 15.6% of net sales for the quarter, down 70 basis points from 16.3% in the prior year period. Non-GAAP operating income declined 4%, representing 16.6% of net sales in the quarter, down 60 basis points from 17.2% in the prior year period. The Company’s effective income tax rate was 35.7% for the quarter as compared to 36.6% in the prior year period. Diluted weighted average shares outstanding for the first quarter were 164 million, up 8% from 152 million in the prior year period as a result of 16.7 million shares and 1.4 million shares issued in connection with the Coca-Cola and Lavazza equity transactions3, respectively. Such transaction-related dilution was offset, in part, by the Company’s share repurchases under its previously announced share repurchase authorizations including a $700 million accelerated share repurchase (ASR) agreement. GAAP diluted EPS declined 10% from the prior year period to $0.82. Non-GAAP diluted EPS declined 8% from the prior year period to $0.88. Non-GAAP EPS excluding the dilution from the Coca-Cola and Lavazza Equity Transactions and foreign exchange was even with the prior year period. Balance Sheet & Cash Flow Highlights Frances G. Rathke, Chief Financial Officer stated, “We ended the first quarter with net cash and other cash assets of over $600 million, and combined with a strong and flexible balance sheet, we remain well positioned to invest in innovation and organic growth while continuing to return meaningful cash to shareholders. This includes our dividend, which was raised by 15% last quarter and a share repurchase authorization which stands at $1.1 billion at the end of the first quarter.” (1) Free cash flow is calculated by subtracting capital expenditures for fixed assets from net cash provided by operating activities as reported in the unaudited statement of cash flows. Share Repurchases During the first quarter, the Company repurchased a total of 586,000 shares at a cost of $81 million. From the inception of its Board authorized share repurchase program through the end of the Company’s first fiscal quarter of 2015, the Company has repurchased a total of 17.5 million shares at an average price of $67.94 for a total cost of $1,188 million. This was achieved through a combination of the previously announced ASR, open market purchases and 10(b)5-1 plans, including $490 million of ASR repurchases subject to final price adjustment. Dividend Declaration Keurig's Board of Directors has declared a regular quarterly cash dividend of $0.2875 per share of the Company's common stock. The quarterly cash dividend will be paid on April 30, 2015 to shareholders of record as of the close of business on March 31, 2015. Business Outlook and Other Forward-Looking Information “Looking ahead, as a result of certain factors that impacted the first quarter, we now expect revenue to grow mid- to high-single digits in fiscal year 2015,” said Kelley. “Our innovative technology and growing installed base continue to attract premier beverage brands and, with the signing of recent agreements, we have further extended our unrivalled network of partnerships. We are focused on what we believe is a significant opportunity to grow and premiumize at-home hot beverages and we are on track to launch our Keurig cold system in the fall.” The Company updated its outlook for fiscal year 2015 and provided its outlook for the second quarter: Fiscal Year 2015 Net sales growth in the mid-single to high-single digits compared to fiscal year 2014 An annual effective tax rate of approximately 34% to 35% Non-GAAP EPS growth of mid-single digits. This outlook: Includes an approximate $0.27 dilutive impact from the fiscal 2014 Coca-Cola and Lavazza Equity Transactions Includes an estimated $0.15 headwind from foreign currency exchange Excludes any additional actions the Company may take to offset dilution during fiscal year 2015 Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an approximate $0.27 dilutive impact from the fiscal 2014 Coca-Cola and Lavazza Equity Transactions Includes an estimated $0.15 headwind from foreign currency exchange Excludes any additional actions the Company may take to offset dilution during fiscal year 2015 Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Free cash flow in the range of $225 million to $325 million Capital investment in the range of $425 million to $475 million Second Quarter 2015 Net sales growth in the mid-single digits over the second quarter of fiscal year 2014 An effective tax rate of approximately 36% to 37% Non-GAAP EPS in a range of $1.00 to $1.05 which: Includes an approximate $0.08 dilutive impact of the fiscal 2014 Coca-Cola and Lavazza Equity Transactions Includes an estimated $0.07 headwind from foreign currency exchange Excludes any additional actions the Company may take to offset dilution during the quarter Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation Includes an approximate $0.08 dilutive impact of the fiscal 2014 Coca-Cola and Lavazza Equity Transactions Includes an estimated $0.07 headwind from foreign currency exchange Excludes any additional actions the Company may take to offset dilution during the quarter Excludes the amortization of identifiable intangibles related to the Company’s acquisitions and legal and accounting expenses related to the Company’s pending securities and stockholder derivative class action litigation and antitrust litigation 1 Certain items in this press release are designated as “Non-GAAP” and represent non-GAAP financial measures that exclude certain items. Please see the attached “GAAP to Non-GAAP Reconciliation” to find disclosure and reconciliation of non-GAAP financial measures, as well as a discussion in this release as to why the Company is presenting such non-GAAP measures. 2 Equivalent servings translates our multiple pack sizes, including K-Cup, K-Carafe and Bolt packs, into a common serving 3 The Company issued 16.7 million shares as part of the transaction with The Coca-Cola Company, which closed February 27, 2014 and another 1.4 million shares as part of the transaction with Luigi Lavazza S.p.A, which closed April 7, 2014 (the Coca-Cola and Lavazza Equity Transactions). Conference Call and Webcast Keurig will be discussing these financial results with analysts and investors in a conference call and live webcast available via the Internet at 5:00 p.m. ET today, February 4, 2015. The call is accessible via live webcast from the events section of the Investor Relations portion of the Company’s website at http://investor.keuriggreenmountain.com/events.cfm. The Company archives the latest conference call for a period of time. A replay of the conference call also will be available by telephone at (719) 457-0820, passcode 1811595 from 9:00 p.m. ET on February 4, 2015 through 9:00 p.m. ET on Monday, February 9, 2015. Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results that exclude legal and accounting expenses related to the pending securities and stockholder derivative class action litigation and pending antitrust litigation against the Company; and non-cash acquisition-related items such as amortization of identifiable intangibles, each of which include adjustments to show the tax impact of excluding these items. In fiscal 2014 the Company’s non-GAAP operating results also exclude legal and accounting expenses related to the now concluded SEC inquiry. In each case these amounts are not in accordance with, or an alternative to, GAAP. The Company’s management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company’s results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the “GAAP to Non-GAAP Reconciliation” table that accompanies this document for a full reconciliation of the Company’s GAAP to non-GAAP results. About Keurig Green Mountain, Inc. As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (Keurig) (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Forward-Looking Statements Certain information in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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 success of introducing and producing new product offerings, 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, projections for future capital expenditures, our expectations regarding purchasing shares of our common stock under the existing authorizations, projections of payment of dividends, the impact of pending shareholder litigation, and the impact of antitrust litigation pending against the Company in the United States and Canada. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors" and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2014 Annual Report filed on Form 10-K, elsewhere in this report and those described from time to time in our future reports filed with the Securities and Exchange Commission. KGM-G, KGM-US, KGM-CA December 27, 2014 September 27, 2014 Receivables, less uncollectible accounts and return allowances of $76,265 and $66,120at December 27, 2014 and September 27, 2014, respectively Preferred stock, $0.10 par value: Authorized - 1,000,000 shares; No shares issued oroutstanding Common stock, $0.10 par value: Authorized - 500,000,000 shares; Issued andoutstanding - 162,066,179 and 162,318,246 shares at December 27, 2014 andSeptember 27, 2014, respectively Thirteen weeks ended December 27, 2014 December 28, 2013 Fixed asset purchases included in accounts payable and not disbursedat the end of each period KEURIG GREEN MOUNTAIN, INC. GAAP to Non-GAAP Reconciliation (Dollars in thousands, except per share data)

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced that the Company plans to announce financial results for its fiscal 2014 fourth quarter and full year in a press release to be issued following the close of the financial markets on Wednesday, November 19, 2014. In conjunction with this announcement, the Company will host a conference call with investors and analysts on Wednesday, November 19, 2014 at 5:00 p.m. ET. The live conference call will be simultaneously webcast and will be accessible from the events and presentations link in the Investor Relations portion of the Company's website: http://investor.keuriggreenmountain.com/events.cfm. The webcast will be archived for replay following the conclusion of the live event. Individuals who prefer not to use the internet for either the live call or the replay can call Keurig’s Investor Services Department, (802) 488-2559, to make alternate arrangements to hear the live call or the replay by telephone through Sunday, November 23, 2014. About Keurig Green Mountain, Inc.As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative Keurig® brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. KGM-G, KGM-US

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced that the Company plans to announce financial results for its fiscal 2014 third quarter in a press release to be issued following the close of the financial markets on Wednesday, August 6, 2014. In conjunction with this announcement, the Company will host a conference call with investors and analysts on Wednesday, August 6, 2014 at 5:00 p.m. ET. The live conference call will be simultaneously webcast and will be accessible from the events and presentations link in the Investor Relations portion of the Company's website: http://investor.keuriggreenmountain.com/events.cfm. The webcast will be archived for replay following the conclusion of the live event. Individuals who prefer not to use the internet for either the live call or the replay can call Keurig’s Investor Services Department, (802) 488-2559, to make alternate arrangements to hear the live call or the replay by telephone through Sunday, August 10, 2014. About Keurig Green Mountain, Inc. As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative Keurig®brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Keurig Green Mountain Forward-Looking Statements Certain information in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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 success of introducing and producing new product offerings, 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, projections of payment of dividends, the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings, and the impact of any pending or future antitrust litigation. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission for the thirteen weeks ended March 29, 2014, and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2013 Annual Report filed on Form 10-K, as amended, and elsewhere in those reports and those described from time to time in our future reports filed with the Securities and Exchange Commission. Actual results could differ materially from those projected in the forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. KGM-G, KGM-US

WATERBURY, Vt.--(BUSINESS WIRE)--Keurig Green Mountain, Inc., (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced that the Company plans to announce financial results for its fiscal 2014 second quarter in a press release to be issued following the close of the financial markets on Wednesday, May 7, 2014. In conjunction with this announcement, the Company will host a conference call with investors and analysts on Wednesday, May 7, 2014 at 5:00 p.m. ET. The live conference call will be simultaneously webcast and will be accessible from the events and presentations link in the Investor Relations portion of the Company's website: http://investor.keuriggreenmountain.com/events.cfm. The webcast will be archived for replay following the conclusion of the live event. Individuals who prefer not to use the internet for either the live call or the replay can call Keurig’s Investor Services Department, (802) 488-2559, to make alternate arrangements to hear the live call or the replay by telephone through Sunday, May 11, 2014. About Keurig Green Mountain, Inc. As a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (Keurig) (NASDAQ: GMCR), is recognized for its award-winning beverages, innovative Keurig® brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. Keurig supports local and global communities by investing in sustainably-grown coffee and by its active involvement in a variety of social and environmental projects. By helping consumers drink for themselves, we believe we can brew a better world. For more information visit: www.KeurigGreenMountain.com. To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca. Keurig routinely posts information that may be of importance to investors in the Investor Relations section of its website, www.KeurigGreenMountain.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 Keurig as it is released. Keurig Green Mountain Forward-Looking Statements Certain information in this filing constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future or conditional verbs, such as "will," "should," "could," "may," "aims," "intends," or "projects." However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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 success of introducing and producing new product offerings, 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, projections of payment of dividends, and the impact of the inquiry initiated by the SEC and any related litigation or additional governmental inquiry or enforcement proceedings. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, "Item 1A. Risk Factors," and Part II "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our fiscal 2013 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Actual results could differ materially from those projected in the forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. KGM-G

WATERBURY, Vt.--(BUSINESS WIRE)--Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR), a leader in specialty coffee and coffee makers with its innovative Keurig® brewing technology, today announced that the Company plans to announce financial results for its fiscal 2014 first quarter in a press release to be issued following the close of the financial markets on Wednesday, February 5, 2014. In conjunction with this announcement, the Company will host a conference call with investors and analysts on Wednesday, February 5, 2014 at 5:00 p.m. ET. The live conference call will be simultaneously webcast and will be accessible from the events and presentations link in the Investor Relations portion of the Company's website: http://investor.gmcr.com/events.cfm. The webcast will be archived for replay following the conclusion of the live event. Individuals who prefer not to use the internet for either the live call or the replay can call GMCR’s Investor Services Department, (802) 488-2559, to make alternate arrangements to hear the live call or the replay by telephone through Sunday, February 9, 2014. About Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) 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. For more information visit: www.gmcr.com. To purchase Keurig® and Green Mountain Coffee® products visit: www.keurig.com, www.greenmountaincoffee.com or www.keurig.ca. 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. Forward-Looking Statements Certain information contained in this filing constitutes "forward-looking statements." Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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 success of introducing and producing new product offerings, 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, and projection of payment of dividends. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those risks and uncertainties described in our filings with the SEC. Actual results could differ materially from those projected in the forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. GMCR-C