Professional Documents
Culture Documents
Nicholas Lazaris
President/CEO
Board Member
Christophe
r Stevens
Vice
President
Sales and
Marketing
Richard
Sweeney
Vice
President,
Operations
2
and
Keurig - 1992
Ian Greenwood
K-Cup
1995
1996
Peter Dragone
MBA
: Keurig-
Keurig
Peter Dragone
(Late summer 1996)
Keurig Onstott
Nick Lazaris
Keurig
(Feb 1997).
Nick Lazaris
1997 Keurig
Office Specialists
1200
1989-1995 M.W.Carr
2000
Keurig
10
11
Exhibit 4
1998 Profile
: $55.8 million
: $24.6 mil
: 321
: $25.8mil
NASD symbol: GMCR
Growing net income
12
MDT 75%
K-Cup KCup
13
K-Cup
1.
2.
3.
1,000
14
*
( )*
Keurig
15
$150
16
exhibit 7
17
Overall cost savings (no wastage, labor, etc)
OCS
/ )
OCS
OCS
Keurig
US$400/
US$1000/
US$0.275~0.375;
1/3
US$0.4~0.5
1-2
30min(=US$7.5)
18
19
or
20
21
22
,
&
$15
us$400~500 ,
1~2 , US$60~90
23
ex: Maxwell
16 milliom ,
US$25~70
Keuring -US$100~150,
24
Caf System
7
Flavia
US
M&M/Mars
US$2000~2500/
US$2500/
US$1200/
US$0.29
US$0.22
US$0.39
Filterfresh
25
Filterfresh
Filterfresh
29/cup
40,000 existing
units ($2500/ea)
26
Flavia
Flavia
Part of M&M/Mars (most significant competitor,
but didnt have passion)
39/cup
2000 ($1200 ea)
27
Caf System 7
Caf System 7
22/cup
17,000 units
($2500 ea)
28
K-cup MTS
MTS US$700K ,
US$180K , Keuring
MTS US$550K,
US$900K700K
: ,
Keurig
29
Pilgrim
Quantum
Amalgamated
US$575K
US$500K
US$525K
,
Keurig1500
Keurig
,
30
Vandelay, 1000 ,
us$789 us$825
Lakeland
Pilla
US$680/
US$700 (
)
Keurig
,
31
32
Remark
keurig
http:// www.keurig.com
33
Thank You!
1- Keurig
Keurig ?
A.
B. Green Mountain
C. Keurig
D.
E.
35
:
Number of brewing units in offices = 1,937,000( exhibit 6)
Number of cups consumed per brewing unit per day = 43
( p.11)
Number of work days per year = 250
Number of cups consumed per year in offices = 20.8 billion
(product of three assumptions above)
Current average cost of cup consumed = $0.125 per cup
(Exhibit 6)
Profit to Keurig per K-cup produced = $0.04 (page 5)
Output per year for packaging line = 16.125 million K-cups
(page 11, needed to support 1,500 brewers)
Price per K-cup to office coffee distributor = $0.25
Price per K-cup to Office Manager = $0.5
36
2- Nick Lazaris : MTS
3-
4-
? OCS
5-
37
End users
Starbucks
$0.75~1.0
Brewers
$650825
Line Vendor
(MTS)
KEURIG
$500k~70
0k
Filter
Line
Brewer at
Office
Brewers Office Coffee ?
Kcup@ Manager
Supply
$1000
s
Distributors $0.5/EA
$0.04
Royalty per
Kcup
Kcups @
$0.25
Coffee Roaster
(Green
Mountain)
38
Pilgrim
Quantum Industries
Amalgamated
Technologies
Mike Moore
900K?
=575K
=500k
Minnesota (1500 )
=525K
Minnesota (1500 )
39
Lakeland Instruments
Pilla Manufacturing
Wellesley
680
700
789
825
Minnesota (1500
)
New York
40
Make or Buy
41
Determining feasibility
Determining need
Methods/processes
- Analysis of components
- Break-even analysis
- Decision tree
- Total Cost of Ownership Analysis
- Sensitivity Analysis
what-if analysis:
( ) NPV(
) IRR ( )
- Cost estimation processes
Buying costs
Marking costs
42
43
( )
( )
44
know-how
( )
( )
45
Reduced Costs
46
(Communication)
Business Ethics
(Purchasing)
. .
(Production Management)
( . . )
( . . . )
47
48