MEMO TO GREEN MOUNTAIN COFFEE ROASTERS MANAGEMENT

Wednesday, June 6, 2012

DISCLAIMER
The information contained herein reflects the views of Longshorttrader (LST) as of the date of publication. These views are subject to change without notice at any time subsequent to the date of issue. LST has an economic interest in the price movement of the securities discussed in this presentation, but LSTs economic interest is subject to change without notice. All information provided in this presentation is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. In addition, there can be no guarantee that any projection, forecast or opinion in this presentation will be realized. All trade names, trademarks, service marks, and logos herein are the property of their respective owners who retain all proprietary rights over their use. This presentation is confidential and may not be reproduced without prior written permission from LST.

Dear Green Mountain Coffee Roasters Management,

Its been over three weeks since LST wrote, Open Letter to GMCR Board of Directors which was first posted on zerohedge, a leading financial media site. Your lack of response, either directly to LST, or indirectly through the media, is very concerning. One of the most vocal advocates of your stock, Rock Point Advisors, expressed similar concerns, May 8th: The primary reason for the 50% drop in share price was not the earnings report It was the impression that management is clueless and not in control. Whether the management team wanted to cover up those mistakes management has done a poor job of explaining itself to investors. What is absolutely necessary at this point is clear communication from management. More immediate measures to improve management credibility will encourage others to reach the same conclusion. LST agrees; you have done a poor job of explaining yourself to investors. Your shareholders deserve better. After all, you would not be where you are today without their trust and financial support. Simply put, you owe them. You can start by providing clear and truthful answers to basic questions related to your business. Furthermore, you should address all skeptics questions and concerns. Oh, and please do share your answers with all shareholders, not just to a select bunch. One of the nation's top accounting sleuths, Sam Antar, and best-selling author Roddy Boyd, seem to believe youve shared material, non-public information with a select group of investors and analysts. In fact, Antar has expressed his belief that youve violated Regulation FD. If there are indeed problems with your business, please acknowledge them. There is no shame in making mistakes, only in failing to correct them, or denying they exist (when in fact they do). Also, someone needs to take responsibility. Perhaps Robert Stiller, now your former Chairman, should leave the Board entirely. Rock Point Advisors expressed similar sentiments, even recommending that (now former) board member Douglas Daft replace Stiller. Its too bad Daft is no longer with GMCR. LST and your shareholders would appreciate it if you would address the questions and concerns listed on the next page. Perhaps you can address them later today, at the Piper Jaffray Consumer Conference. If you have any questions or concerns, please do not hesitate to contact. Thanks for your time. Look forward to hearing from you either at the conference, or at your earliest convenience.

Best Regards,

LST

Questions for GMCRs Management I. The Vue Brewer i. Why did you lower Vue-specific Capital Expenditures guidance by 35% this past quarter? ii. Why did you sound so optimistic about the Vues prospects at the recent Janney Conference, even as you lowered Vue-specific Capex guidance just 3 weeks before? iii. Why is the Vue selling on eBay for $185 (tax & shipping included, with receipt), or already available at Walmart, if it is a Premium, Next Generation brewer? iv. How does selling your high-end Vue at Walmart affect your brand? v. Is Vue a finished product or more like a product in beta-testing mode? Customer reviews indicate there are various bugs. Q2 Sales Miss i. How is it that you are still trying to figure out why you missed your Q2 sales? Your quarter ended in March. Youre still figuring things out as of May 21? ii. Why no mention of M. Block at your Janney Conference appearance, when you mention channel management challenges as a possible cause of your sales miss? Doesnt M. Block process/distribute approximately 40% of your sales? iii. Perhaps its time for you take matters into your own hands, and handle the processing/distribution function entirely in-house? Business Prospects i. Are you lowering prices or offering concessions to your retailers? LST and others are seeing plenty of k-cup inventories on clearance sales nationwide. How will you priceprotect your customers inventory, once you lower prices? ii. Why are we seeing fall and winter products on sale at retailers in June? iii. Are Starbucks/Dunkin Donuts k-cups cannibalizing the sale of your own branded ones? iv. Comment on reusable k-cup filter trends, and the impact on k-cup sales and margins. When will there be a reusable Vue cup filter available? v. How is the rollout of competing products, such as the Rogers OneCup, affecting sales? vi. Why didnt you pre-release Q2s numbers? Your stock was cut in half. Would you prerelease Q3s numbers? Cash Flow i. Why did CFO Frances Rathke state that GMCR will not be cash flow positive this year, in the Q2 earnings call? She sounded upbeat about being cash flow positive in Q1. ii. Shouldnt it be easier for you to be cash flow positive as of Q2 versus Q1, given you just lowered full year Capex guidance by $100 million in Q2? iii. CFO Rathke claims seasonal working capital needs & capital expenditures will prevent us from being cash flow positive, yet these issues were well known in Q1. Inventory & Accounts Receivable balances remain high. Are you saying theyre going even higher? Corporate Social Responsibility (CSR) i. Please explain why your donations seem less than 5% of pre-tax income in 2003, 2005, & 2009, contrary to your claims you allocated at least 5% of your pre-tax income towards philanthropic efforts, in your 10K SEC filings. ii. Your CSR website doesnt seem to have been maintained much beyond 2009. Do you have CSR reports for 2010 or 2011? LST is unable to find them. iii. Are your CSR numbers audited? Why is it that CSR numbers were disclosed in your 2010 and 2011 Annual Reports (to shareholders), yet LST is unable to find CSR-specific reports? Arent Annual Reports and CSR Reports intended for different audiences?

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