Green Mountain Coffee Roasters announced it would consolidate all of its Canadian coffee and portion pack production to its Montreal, Quebec facility in Canada. GMCR expects to cease production at its Toronto, Ontario facility by March 5, 2014 affecting a total of 120 production and production support employees, or approximately two percent of its total workforce, whose positions will be eliminated, according to the press release.
"As we continue to grow, we also are assessing the effectiveness of our manufacturing, distribution, and logistics network across our U.S. and Canadian locations," said Brian P. Kelley, president and CEO of GMCR, in a prepared statement. "We have expanded the footprint of our Montreal facility more than 40 percent this fiscal year. After careful analysis of facility-specific operational costs and the Toronto facility's inability to expand to accommodate future growth, it was clear that consolidating our Canadian-based production to our Montreal facility is the right business decision to support our strong and growing presence in Canada. We recognize the impact that this action has on our employees and their families and intend to support them through the transition process."
GMCR expects a one-time pre-tax charge related to this action in its fourth quarter fiscal year 2013. GMCR expects the impact of the charge will be immaterial to its fiscal year 2013 results and did not update its previously issued financial outlook.
Following closure of the Toronto facility, GMCR will manufacture all of the licensed, Keurig Brewed® K-Cup® and Vue® packs for use in its Keurig brewers in eight facilities in the US and Canada.