By: William Allen, Alicia Anderson, Brandi Borman, Patrick Dupuis, Ariel Jackson, Steven Morton,
Melissa Strle
Keurig Green Mountain Inc. has come a long way from its humble beginnings in 1981 as a small specialty coffee store in Vermont, USA. The company was originally called Green Mountain Coffee but then transitioned into Green Mountain Coffee Roasters Inc. In 1993, two engineers approached Green Mountain Coffee Roasters to invest in a single cup brewing system, and Keurig was born (Green Mountain Coffee Roasters, n.d.). An initial public offering was completed in September of 1993. In 1997, Keurig became the first to offer coffee in a K-Cup portion pack for the Keurig Single-Cup Brewing System. In 1998, the first single cup coffee brewer for offices was delivered (Green Mountain Coffee Roasters, n.d.). Since then, the company has experienced tremendous growth.
In 1995, net sales were $34 million but increased to $84 million in 2000 and then to $224 million in 2006 (Keurig Green Mountain Sustainability Report, 2014). In 2010, net sales further grew to $1.36 billion and went on to reach enormous volumes with net sales of $4.71 billion in 2014 (Keurig Green Mountain Sustainability Report, 2014). To reach this level of growth, Keurig utilizes strategic partnerships with 80 coffee brands allowing for 575 hot and cold beverage varieties for its brewing system (Keurig Green Mountain Sustainability Report, 2014). Keurig primarily operates within North America and has established facilities in six U.S. states. Its principle Canadian office is in Montreal, Quebec where Keurig’s management team, coffee roasters, and packaging plants are located (“Keurig Green Mountain,” 2015). As the company has expanded in sales and profit, Keurig’s commitment to sustainability increased as well.
Interestingly, two of Keurig’s corporate values are “We play to win” and “We brew a better world” (“Keurig Green Mountain,”2015). It is important for major companies to recognize the importance and value of a strong business case for sustainability. Berns et al. (2009) determined after reviewing facts and identifying a strong business case, leading companies will publicly commit to ambitious sustainability goals, demonstrating that investment in sustainability leads to strong business results. Keurig’s website indicates it is using the power of business to brew a better world through building resilient supply chains, sustainable products, thriving communities, and a water-secure world (“Keurig Green Mountain,” 2015). Keurig identifies both a solid business foundation in combination with sustainable values to justify its goal of having a positive impact on the world.
An analysis of six sustainability dimensions at Keurig Green Mountain Inc. was audited to provide an overview of the strengths and weaknesses of current sustainability practices at the company. The sustainability dimensions analyzed include corporate governance, environment, social and cultural, economic, technology, and community engagement. To determine Keurig’s overall sustainability rating, the individual dimension ratings and rationale of sustainability practices at Keurig’s are also provided.
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