Green Mountain Coffee Pledges $450,000 To Root Capital For Financial Literacy In Farmer CommunitiesNew York City, September 26, 2008 – The Clinton Global Initiative announces an innovative partnership between Green Mountain Coffee, a division of Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) and Root Capital to improve the financial literacy and management skills of rural-based businesses in Latin America and Africa, which include many of Green Mountain Coffee’s coffee suppliers.
Jane Wales, Chair of the Clinton Global Initiative’s poverty alleviation working group, recognized William Foote, President and Founder of Root Capital, and Michael Dupee, Vice President of Corporate Social Responsibility for GMCR, on stage as part of a session focused on cutting-edge efforts to enhance agricultural productivity and inventive models that help small farmers gain access to markets.
Green Mountain Coffee made a commitment at the Clinton Global Initiative to support Root Capital’s efforts to expand its financial training with a five-year, $450,000 grant – the largest single grant in the coffee company’s history. Since its launch, Root Capital has provided more than $100 million in loans to cash-strapped farmers, artisans, and other small-holder producers, including nearly $50 million specifically to Green Mountain Coffee suppliers.
After six years of lending activity, Root Capital realized that these enterprises need more than credit to improve livelihoods in the long term. Many grassroots businesses in the developing world lack basic financial management skills and the ability to apply for and manage capital from local banks. In 2006, with Green Mountain Coffee’s support, Root Capital launched a pilot financial education and training program in northern Latin America to develop basic financial and management skills among members and leaders of 50 grassroots businesses. Twelve of these enterprises are Green Mountain Coffee suppliers, representing over 10,000 members.
“Root Capital’s innovative work in providing financial services to the underserved global community of grassroots businesses has helped us better serve all our stakeholders and meet our own goals around reducing poverty and hunger in the communities we touch,” said Dupee. “Our partnership helps create economic opportunity, supports entrepreneurial activity, and provides economic incentives for sustainable natural resource management in rural communities worldwide.”
As part of its continued dedication to supporting the coffee-growing communities that make up its supply chain, Green Mountain Coffee’s announced commitment at the Clinton Global Initiative will support Root Capital in the next critical growth stage of the program. Through this partnership, Green Mountain Coffee will enable Root Capital’s launch of the program in South America and Africa, addressing the immediate need for strong financial management within grassroots businesses, while building the long-term financial capacity of entire rural communities. In total, from 2009 to 2012 Root Capital will build the financial expertise among the leaders of 150 grassroots businesses, representing nearly 100,000 farmers and artisans in 12 countries.
“We are tremendously appreciative of Green Mountain Coffee’s support and the Clinton Global Initiative’s recognition of our work,” said Foote. “With access to markets, financial services, and financial training, together we will enable rural communities to lift themselves out of poverty while strengthening the health of our planet.”
Root Capital is pioneering finance for grassroots businesses that build sustainable livelihoods and transform rural communities in poor, environmentally vulnerable places. By working with small and growing businesses such as farmer cooperatives and artisan associations, Root Capital aims to fill the “missing middle” of finance in developing countries – the underserved gap between microcredit and commercial financial institutions. Since its launch, Root Capital has provided financial training and more than $100 million in credit to 210 grassroots enterprises in 30 countries in Latin America, Africa, and Asia—with a 99% repayment rate. www.rootcapital.org
Green Mountain Coffee Roasters, Inc.
Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) is recognized as a leader in the specialty coffee industry for its award-winning coffees, innovative brewing technology and socially and environmentally responsible business practices. GMCR manages its operations through two wholly owned business segments: Green Mountain Coffee and Keurig. Its Green Mountain Coffee division sells more than 100 high-quality coffee selections, including Fair Trade Certified™ organic coffees, under the Green Mountain Coffee® and Newman’s Own® Organics brands through its wholesale, direct mail and e-commerce operations (www.GreenMountainCoffee.com). Green Mountain Coffee also produces its coffee as well as hot cocoa and tea in K-Cup® portion packs for Keurig® Single-Cup Brewers. Keurig, Incorporated is a pioneer and leading manufacturer of gourmet single-cup coffee brewing systems for offices, homes and hotel rooms. Keurig markets its patented brewers and K-Cups® through office distributors, retail and direct channels (www.Keurig.com). K-Cups are produced by a variety of licensed roasters including Green Mountain Coffee and Tully’s. Green Mountain Coffee Roasters, Inc. has been recognized repeatedly by CRO Magazine, Forbes and SustainableBusiness.com as a good corporate citizen and an innovative, high-growth company.
Clinton Global Initiative (CGI)
Established in 2005 as a project of the non-partisan William J. Clinton Foundation, the Clinton Global Initiative (CGI) convenes global leaders to devise and implement innovative solutions to some of the world’s most pressing challenges. Since 2005, CGI members have made nearly 1,000 Commitments to Action valued at upwards of $30 billion to improve more than 200 million lives in over 150 countries around the world. Through past Annual Meetings, CGI has brought together more than 80 current and former heads of state, hundreds of top CEOs and non-profit leaders, major philanthropists, and 10 of the last 16 Nobel Peace Prize laureates. www.clintonglobalinitiative.org