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  "docSlug": "42871e2cc2e7",
  "documentTitle": "Green Mountain Coffee Roasters (GMCR)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
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  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2011-10-17 00:00:00",
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  "notes": "The slide uses a bottom-up buildup to derive a specific fee based on industry benchmarks and company-specific margin commentary.",
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      "text": "Smucker’s Deal Implies Manufacturing Fee of ~$0.06",
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      "text": "1. Based on current retail pricing of Folgers and Millstone K-cups\n2. As per grocery industry due diligence specific to Smucker’s branded K-cups\n3. Greenlight estimates\n4. Based on Smucker’s corporate SG&A expense as a percent of sales of approximately 17%\n5. Smucker’s commented on 2/17/2011 that K-cup margins were above SJM overall margins of ~16%, but not above coffee segment margins of ~29%\n6. Greenlight estimates this manufacturing fee based on Smucker’s commentary related to its K-cup operating margin range. In addition, the $0.06 fee is consistent with prior royalty payments received by Keurig from licensees manufacturing K-cups.",
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      "text": "Manufacturing Fee: $0.06",
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      "text": "Retail Sales Price per K-cup: $0.63; Retail Markup: $0.15; % retail price: 24.5%; Revenue to Smucker's: $0.47; Coffee & Roasting Costs: $0.10; Packaging Costs: $0.12; Total COGS: $0.22; Gross Profit: $0.25; Operating Expenses: $0.08; Operating Profit Before Manufacturing Fee: $0.17; Operating Profit After Manufacturing Fee: $0.11; Operating Margin %: 24%; Estimated Manufacturing Fee to GMCR: $0.06",
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