Keurig Green Mountain, Inc., today reported net sales for the third quarter of fiscal 2014, ended June 28th, increased by $55.3 million, or 6%, to $1,022.4 million compared to the prior year period. According to the company, the 6% increase includes the unfavorable impact of foreign currency exchange rates which reduced net sales by approximately 1%.
The company reported a 4% decline in brewer and accessory net sales; a result the company said was driven by a 13% increase in brewer sales volume and a 3% point increase due to brewer mix. The company indicated this was offset by a 21% decrease due to brewer net price realization with approximately half resulting from a “strategic decision to drive brewer volume to be in an appropriate inventory position ahead of our Keurig 2.0 launch and to further expand the installed base of our Keurig hot platform.”
The company indicated the other half was due to a difficult year-over-year comparison from a reduction to the company’s sales return reserve, which reflected lower brewer sales returns.
“Our solid year-over-year brewer shipment growth of 13% and our 15% unit growth in portion packs is indicative of the continued expansion of the Keurig system across the U.S. and Canada,” stated Brian Kelley, Keurig Green Mountain CEO. “We also are excited about the imminent launch of our new Keurig 2.0 hot platform; the addition of formerly unlicensed and new brands to the Keurig hot beverage system during the quarter; and, our progress on the new Keurig Cold beverage system.”