keurig green mountain template 4x3_5_11_15 (1)
TRANSCRIPT
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CONFIDENTIAL: FOR INTERNAL USE ONLY
a)Speaker’s Name/Titleb)Event Title/Description/Speaking topicc)Date/Time/Location of Eventd)Audiencee)Purpose/Objectives of Keurig Green Mountain representationf)Speech and/or Outline of intended comments/copy of Presentationg)Media coverage expected? If so, please provide detailsh)Approval by direct supervisor in attached e-mail
All Keurig Green Mountain employees’ public appearances representing the company must be reviewed
and approved prior to commitment to the opportunity.
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WHO WE ARE TEMPLATE – FOR EMPLOYEE USE
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Updated: May 11, 2015
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AGENDA ITEM 1
AGENDA ITEM 2
AGENDA ITEM 3
AGENDA ITEM 4
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AGENDA ITEM 1
AGENDA ITEM 2
AGENDA ITEM 3
AGENDA ITEM 4
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Technology Company?
Appliance Company?
WHO ARE WE?
Beverage Company?
Coffee Company?
We Are
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An innovative
technology-driven
values-based
personal beverage-system company.
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OUR UNIQUE COMBINATION OF BEVERAGE AND TECHNOLOGY EXPERTISE
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Socially Responsible Premium Coffee
Sustainability FocusedEnlightened CapitalismWin-Win Partnerships
Advanced Food ScienceProgressive Blending
& RoastingBrewing A Better World
OUR UNIQUE COMBINATION OF BEVERAGE AND TECHNOLOGY EXPERTISE
EngineersSystems Design & Integration
Materials ScienceHeat Transfer
Injection DosingAdvanced Electronics
Fluid Dynamics Continuous Innovation
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COMING TOGETHER TO CREATE…
The ultimate at-home coffee experience
An accelerated category
Significant value for consumers, customers, & shareholders
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A TECHNOLOGY COMPANY PREMIUMIZING BEVERAGES
*Non-GAAP EPS is a Non-GAAP financial measure.
*
50070~
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NORTH AMERICAN ROOTS
9 PRODUCTION FACILITIES
2 R&D FACILITIES
400 ENGINEERS & SCIENTISTS1
6,600 + EMPLOYEES
436 PATENTS ISSUED GLOBALLY1
387 PATENT APPLICATIONS PENDING GLOBALLY1
1 end of year fiscal year 2014
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GROWING GLOBAL REACH
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BREWER SOURCINGOFFICES & MANUFACTURING BEVERAGE SOURCING
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A UNIFIED DIRECTION…
PURPOSE: Create the ultimate beverage experience in every life we touch, from source to cup – transforming the way the world understands business.
MISSION: A Keurig® brewer on every counter and a beverage for every occasion.
VISION: Become the world’s leading personal beverage systems company.
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Our boundaryless approach to collaboration creates benefits for all.
We Partner for Mutual Success
With courage and curiosity, we are shaping the future by redefining the consumer experience.
We Innovate with Passion
Our team sets ambitious goals and meets each challenge with unified purpose and character.
We Play to Win
We use the power of business to make the world a better place.
We Brew a Better World
SHARED VALUES…
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GROWTH
OPERATIONAL EXCELLENCE TALENT & CULTURE
OUR DRIVING BUSINESS OBJECTIVES
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Intuitive simplicity
Less coffee waste
Ultra-convenient
Vast brand selection
Freshest taste… every time
FOUNDATION OF KEURIG’S SUCCESS
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KEURIG® IS AN ADVANCED, PERSONAL BEVERAGE SYSTEM
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A network system effect
A brand accelerator
A premium experience brought into the home
An enabler to understand the demand signal in home
An in-home beverage creation system
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A POWERFUL PORTFOLIO OF BRANDS
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OUR LATEST INNOVATIONS
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Keurig® 2.0 Keurig® KOLD™
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Brews nearly 500 beverages from 70+ Keurig® owned and licensed brands
Brews all Keurig® K-Cup®, Vue®, K-Mug™, and K-Carafe™ pods
First Keurig® brewer to brew a single cup or carafe of coffee
Uses proprietary technology to identify and perfectly brew Keurig® pods
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Carbonation with no CO2 canister
Perfect dosing & one touch simplicity
Beverage delivered cold
Vast brand selection
Sustainable
Freshly prepared carbonated, sparkling, and still beverages
Launching Fall 2015
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APPLYING SUSTAINABILITY TO ALL THAT WE DO…
Bringing improved sustainability to our products, packaging, supply base, manufacturing plants, and employees.
Spending where there is dual benefit:
• Social & Company• Environmental &
Company
Improving ourselves as a priority and designing with sustainability in mind.
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OUR COMPETITIVE EDGE
CONFIDENTIAL: FOR
THRIVING BRANDS WITH AN OPEN ARCHITECTURE
UNIQUE BEVERAGE & APPLIANCE MODEL
MUTUALLY BENEFICIAL PARTNERSHIP CAPABILITY
HOLISTIC SYSTEM DESIGN & EXECUTION
TALENT, VALUES, & CULTURE
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THANK YOU!
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APPENDIX:FINANCES
25CONFIDENTIAL: FOR INTERNAL USE ONLY
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Revenue Growth
Operating Margin2
Dividend Yield
8%
20%
Net Sales $4.7B
1%
KEURIG GREEN MOUNTAIN FISCAL YEAR 2014
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BUILDING ON OUR STRONG SALES GROWTH
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*
($ in millions)
5-year CAGR of 43% Excludes the 53rd week of FY2012 which added approximately $90.0 million in net sales; approximately $11.0 million (net of income taxes of $5.8 million) in net income; and, approximately $0.07 in diluted earnings per share in the fourth quarter and fiscal year 2012.
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APPENDIX:OUR MODEL
28CONFIDENTIAL: FOR INTERNAL USE ONLY
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OUR BUSINESS MODEL
Two primary growth axes
A Keurig® brewer on every counter and a beverage for every occasion
INST
ALLE
D B
ASE
OF
BREW
ERS
DAILY PODS PER BREWER
Volume, Revenue, Profit
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WE SELF-GENERATE & BENEFIT FROM THE NETWORK EFFECT
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= Keurig HouseholdsBoth brands and households representative only. Not actual numbers
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WHEN THE SYSTEM GROWS EVERYONE GROWS
BEVERAGE SYSTEM
A New Gateway for Brands
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APPENDIX:HOT OPPORTUNITY
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KEURIG® SYSTEM BREWED COFFEE GROWTH
Keurig System Brewed Coffee
Energy Drinks
Bottled Water
Coffee Milk Canned Juice
Non Fruit
Drinks
Sports Drinks
Bottled Juices
CSD Aseptic Juices
Drink Mixes
20.4%
6.1% 5.3% 4.5% 4.3%3.2% 2.7%
1.5%
-0.5% -0.6%-2.0%
-3.0%
Total U.S. Multi Outlet Dollar % Change vs Year Ago
Leading the beverage category
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Source: IRI Market Advantage Total U.S. Multi Outlet 52wks ending 12/28/14
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SINGLE CUP COFFEE IS PROPELLING COFFEE CATEGORY $ GROWTHWhile all other segments soften
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Total Coffee Single Cup Coffee Instant Coffee Ground Coffee Whole Bean Coffee
4.5%
25.8%
-2.9% -4.3%
-9.5%
Total U.S. Multi Outlet $ Pct Chg vs YAG
Source: IRI Market Advantage Total U.S. Multi Outlet 52wks ending 12/28/14
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2011 2012 2013 2014 $-
$2,000
$4,000
$6,000
$8,000
$10,000
0%
10%
20%
30%
40%
$7,062 $7,937
$8,357 $8,731
12%
22%
30%
36%
Total U.S. Multi Outlet Coffee Dollar Sales (Billions)
Total U.S. Multi Outlet Coffee Dollar Sales (Billions)Single Cup Coffee Share of Total Coffee
SINGLE CUP SHARE OF COFFEE
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Source: IRI Market Advantage Total U.S. Multi Outlet 52wks ending 12/28/14
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DISRUPTIVE INNOVATION ADOPTION CYCLE
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Early MajorityLate Majority
Early Adopters
InnovatorsLaggards
Early Market
2.5% 13.5% 34% 34% 16%
Mainstream Market
Keurig’s hot system is still in the early stages of development
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THE KEURIG® BRAND IS POWERFUL
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Supplier of the Year4
• 80% Brand Awareness1
• #1 Coffee maker in category dollar sales for 53 months running2
• Brand of the Year Single Serve Coffee Maker3
1 Sentient Brand Tracking Study. January 20152 NPD All Channels 3 2015 Harris Poll EquiTrend® Rankings 20154 for 2014 in association with Keurig 2.0 system launch
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APPENDIX:COLD OPPORTUNITY
38CONFIDENTIAL: FOR INTERNAL USE ONLY
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COLD BEVERAGES ARE 5X THE SIZE OF HOT BEVERAGESDollar share by major category in the U.S.
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Coffee83%
Tea Bags13%
Hot Cocoa4%
Carbonated Beverages
36%
Bottled Water17%
Shelf-Stable Juice15%
Rfg Bev13%
Sports & Energy Drinks11%
RTD Tea/Coffee5%
All Other4%
Total Cold Beverage Sales* CY 2014: $50 billion +Total Hot Beverage Sales
CY 2014: $10 billion+
*excluding dairySource: IRI U.S. Multi Outlet 52wks ending 12/28/14
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CARBONATION LEVELS
COLD PROBLEMS HIDDEN IN PLAIN SIGHT
TEMPERATURE
FRESHNESSFORM FACTOR
INFLUENCES TASTE
CHOICE IN HOME STORAGE
SHOPPABILITY
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APPENDIX:MORE ON KEURIG® KOLD™
41CONFIDENTIAL: FOR INTERNAL USE ONLY
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WILL OFFER BROAD COLD BEVERAGE PORTFOLIOBeloved partner brands – plus new Keurig-owned brands
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OUR NEW OWNED BRANDS FOR KEURIG® KOLD™
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APPENDIX:SUSTAINABILITY
44CONFIDENTIAL: FOR INTERNAL USE ONLY
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Engage 1 million people in our supply chains to significantly improve their livelihoods includingwater security and climate resilience.
People impacted throughKeurig Green Mountain fundedpartner projects.
383.6K
100% of K-Cup® pods will be recyclable.
We are testing key design concepts for a K-Cup® pod that can be easily separated and readily recycled. We are investing $5 million over five years in recycling solutions via the Closed Loop Fund.
Source 100% of primary agricultural and manufactured products according to established Keurig Green Mountain responsible sourcing guidelines.
Coffee traceable to source.64% Responsible Sourcing Supplier
Guidelines established and published.
Reduce life-cycle greenhouse gas emissions of brewed beverages by 25% vs. 2012 baseline.
Coffee roasting energy reduction in fiscal 2014.4% Corporate GHG footprint
complete.
Achieve zero waste-to-landfill at our owned and operated manufacturing and distribution facilities.
Fiscal 2014 manufacturing waste diversion rate (up from 73% in fiscal 2013).
86%
Engage 100% of employees to understand our vision and values and present opportunities that allow them to contribute to our targets.
Surveyed employees who affirmed they are “able to bring our Company’s values to life in my everyday work.”
72%
Balance the water used in our 2020 brewed beverage volume of all our beverages, ounce for ounce.
Project portfolio for balance target in development.
2020 SUSTAINABILITY TARGETS
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Water Stewardship
Our water stewardship approach aims to: optimize resources through efficient use of water in our own operations balance, ounce for ounce, the water used in all our beverages through projects that restore an equal volume of water for natural and community uses; and connect people to clean water sources.
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PROGRESS TOWARDS A RECYCLABLE K-CUP® POD
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