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Green Mountain Coffee Roasters Signs Memo of Understanding With USAID to Address Global Coffee Crisis

Green Mountain Coffee Roasters Signs Memo of Understanding With USAID to Address Global Coffee Crisis

Published 12-13-02

Submitted by Keurig Green Mountain, Inc.

WATERBURY, Vt.- Robert Stiller, CEO and President of Green Mountain Coffee, Inc. (NASDAQ:GMCR) and Andrew S. Natsios, the Administrator of the U.S.Agency for International Development (USAID) today signed a Memo of Understanding (MOU) that creates an alliance to assist coffee producers around the world in addressing the economic, social and environmental impacts of the global coffee crisis. The Coffee Alliance will focus on developing sustainable solutions that will improve the quality of coffee and the quality of life in coffee growing communities. The MOU is a mechanism by which Green Mountain Coffee Roasters may work with USAID in Washington and in missions around the world. The Company's relationship with USAID has developed within the context of the Global Development Alliance, an innovative new business model that includes private companies, foundations and others.

The current coffee crisis has been caused by an oversupply of low quality coffee that has driven the world commodity price for coffee to the lowest levels in more than 30 years. According to Oxfam America, when inflation is taken into account, coffee farmers are receiving less for their produce today than their ancestors received 100 years ago. With market prices below the costs of production, USAID estimates that in Central America alone, at least 600,000 coffee farmers have been forced to seek other employment, often in urban centers or in the United States. The economic impact of the current coffee crisis in this hemisphere is comparable to that inflicted by Hurricane Mitch in 1998.

Green Mountain Coffee Roasters has been supporting the empowerment of coffee farming families and their communities for over 14 years. Much of this support has been provided through organizations like Coffee Kids, Grounds for Health, The Rainforest Alliance, and Conservation International. In 2000, Green Mountain Coffee Roasters signed an agreement with TransFair USA to purchase and sell Fair Trade Certified(TM) coffee, guaranteeing small-scale farmers with a fair price for their coffee. Today the Company has the broadest selection of certified organic Fair Trade coffees in the nation. In November, Green Mountain Coffee initiated a new partnership with Heifer International, to combat hunger in a sustainable manner.

In addition to supporting the work of other organizations working in coffee communities, Green Mountain has worked directly with producers on improvement initiatives such as the construction of drying patios (Guatemala and Peru), washing stations (Mexico), a hydro-electric plant (Peru), and financing for organic certification (Sumatra). Green Mountain Coffee Roasters views the alliance with USAID announced today, as a logical next step in continuing and leveraging the work of the past 14 years.

"The oversupply of coffee on world markets has driven prices to historic lows, causing great hardship to coffee producers and workers, particularly in Central America and east Africa. The Memorandum of Understanding that USAID is signing with Green Mountain Coffee Roasters will help us make a real difference in the lives of these coffee producers and workers. In so doing, Green Mountain is demonstrating that it is both a leader in the coffee industry and an outstanding example of American corporate commitment to public service," said Administrator Andrew S. Natsios.

Robert Stiller, President and CEO of Green Mountain Coffee, Inc. said, "Green Mountain Coffee Roasters is committed to improving the high quality of coffee we sell, and the quality of life in the communities that grow our coffee. We have developed long-term relationships with our growers that foster self-sufficiency and individual empowerment, to fulfill needs identified by the growers themselves. I am very happy that the government of the United States has come forward to address the needs of coffee growers at this critical time. In light of the challenges brought by the market forces in globalized trade, we are very pleased to have been asked to participate in this Coffee Alliance with USAID."

Green Mountain Coffee, Inc. is a leader in the specialty coffee industry and has been recognized by Forbes Magazine for the past three years as one of the "200 Best Small Companies in America." The Company roasts high-quality arabica coffees and offers over 75 coffee selections including single-origin, estate, certified organic, Fair Trade, signature blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters(R) and Newman's Own(R) Organics brands.

The majority of Green Mountain Coffee's revenue is derived from its wholesale operation that serves supermarkets, convenience stores, offices, and other locations where fine coffees are sold. Green Mountain Coffee also operates a direct mail business and an e-commerce website from its Waterbury, Vermont headquarters. Green Mountain Coffee seeks to make the world a better place for present and future generations by operating in an environmentally and socially conscientious manner. The Company contributes at least five percent of its pre-tax profit annually to support socially responsible initiatives, many of which it has supported for over 10 years.

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Keurig Green Mountain, Inc.

Keurig Green Mountain, Inc.

Integration. Commitment. Accountability.

Welcome to the Keurig Green Mountain, Inc. (Keurig) fiscal 2014 sustainability report. At Keurig, we have blended the disruptive innovation of a leading-edge technology company with the consumer focus of a socially conscious, premium beverage company. We’re proud of our integrity, innovation, and growth over more than three decades. We aim to “brew a better world,” using the power of business to make the world a better place.

This report highlights our most recent sustainability initiatives, including our work toward our 2020 sustainability targets. Our work focuses on three key areas: creating a Resilient Supply Chain, innovation of Sustainable Products, and support for Thriving People and Communities. We’ve created a fourth section of the report this year that addresses Water Stewardship, a cross-cutting topic that spans all of our focus areas. With this report, we are announcing a new target to balance the water used in our 2020 brewed beverage volume of all our beverages, ounce for ounce. In other words, for every cup our consumers brew, we will restore the same amount of water for natural and community uses through projects in North America.

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