About Farmer Bros.

Farmer Bros. Co. is a leading coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and other allied products. The company serves a wide variety of customers, from small independent restaurants and foodservice operators to large institutional buyers like restaurant, department and convenience store chains, hotels, casinos, healthcare facilities, and gourmet coffee houses, as well as grocery chains with private brand and consumer-branded coffee and tea products, and foodservice distributors. With a robust product line, including organic, Direct Trade, Project D.I.R.E.C.T. and other sustainably-produced coffees, iced and hot teas, cappuccino, spices, and baking/biscuit mixes, among others, the company offers not only a breadth of high-quality products to its customers but also a comprehensive approach by providing value added services, such as market insight, beverage planning, and equipment placement and service. The company’s principal office and product development lab is located in Northlake, Texas (Northlake facility). Products and Services The company’s product and service categories consist of the following: a robust line of roast and ground coffee, including organic, Direct Trade, Project D.I.R.E.C.T., Fair Trade Certified and other sustainably-produced offerings; frozen liquid coffee; flavored and unflavored iced and hot teas, including organic and Rainforest Alliance Certified; culinary products including premium spices, pancake and biscuit mixes, gravy and sauce mixes, soup bases, dressings, syrups and sauces, and coffee-related products such as coffee filters, cups, sugar and creamers; other beverages including cappuccino, cocoa, granitas and other blender-based beverages and concentrated and ready-to-drink cold brew and iced coffee; and installation, repair and refurbishment services for a wide array of coffee, tea and juice equipment using state of the art restoration techniques, managing full equipment lifecycle and providing enhanced service capabilities, maintenance and value addition. The company’s owned brand products are sold primarily into the foodservice channel. The company’s primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist and Boyds. The company’s Artisan coffee products include Direct Trade, Project D.I.R.E.C.T., Fair Trade Certified, Rainforest Alliance Certified, organic and proprietary blends. In addition, the company sells whole bean and roast and ground flavored and unflavored coffee products under the Public Domain, Un Momento, Collaborative Coffee, Cain's, McGarvey and Boyds brands and iced and hot teas under the China Mist brand through foodservice distributors at retail. The company’s roast and ground coffee products are primarily sold in traditional packaging, including bags and fractional packages, as well as single-serve packaging. The company’s tea products are sold in traditional tea bags and sachets, as well as single-serve tea pods and capsules. Business Strategy The company is a coffee company dedicated to delivering the coffee people want, the way they want it. The company builds partnerships with customers who value quality, a wide array of services and sustainable sourcing and are passionate about delivering great coffee, tea, and culinary experiences to their communities. Seasonality The company experiences some seasonal influences. The winter months historically have generally been the company’s strongest sales months. However, the company’s product line and geographic diversity provide some sales stability during the warmer months when coffee consumption ordinarily decreases. Additionally, the company usually experiences an increase in sales during the summer and early fall months from seasonal businesses located in vacation areas and from grocery retailers ramping up inventory for the winter selling season. Distribution The company operates production facilities in Northlake, Texas and Portland, Oregon. Distribution takes place out of the Northlake and Portland facilities, as well as separate distribution centers in Northlake, Illinois; Rialto, California; and Moonachie, New Jersey. The company’s products reach its customers primarily in the following ways: through its nationwide DSD network of 239 delivery routes and 103 branch warehouses as of June 30, 2022, or direct-shipped via common carriers or third-party distributors. DSD sales are primarily made off-truck to the company’s customers at their places of business. The company operates a large fleet of trucks and other vehicles to distribute and deliver its products through its DSD network, and the company relies on third-party logistics service providers (3PL) for its long-haul distribution. The company maintains inventory levels at each branch warehouse to promote minimal interruption in supply. The company also sells coffee and tea products directly to consumers through its websites and sell certain products at retail and through foodservice distributors. Customers The company serves a wide variety of customers, from small independent restaurants and foodservice operators to large institutional buyers and large national account customers like restaurant, department and convenience store chains, hotels, casinos, healthcare facilities, and gourmet coffee houses, as well as retail with private brand and consumer-branded coffee and tea products, foodservice distributors, and consumers through e-commerce. During fiscal 2022, its top five customers accounted for approximately 24% of its net sales. Competition The company faces competition from many sources, including the institutional foodservice divisions of multi-national manufacturers of retail products many of which have greater financial and other resources than the company do, such as The J.M. Smucker Company (Folgers Coffee) and The Kraft Heinz Company (Maxwell House Coffee), wholesale foodservice distributors such as Sysco Corporation and US Foods Holding Corp., regional and national coffee roasters such as Riverview Acquisition Corp. (S&D Coffee & Tea), Massimo Zanetti Beverage USA, Trilliant Food and Nutrition LLC, Gaviña & Sons, Inc., Royal Cup, Inc., Ronnoco Coffee, LLC, and Community Coffee Company, L.L.C., specialty coffee suppliers such as Rogers Family Company (San Francisco Bay Coffee), Distant Lands Coffee Company, Mother Parkers Tea & Coffee Inc., Starbucks Corporation and JAB Holding Company (Peet’s Coffee & Tea), and retail brand beverage manufacturers, such as Keurig Dr. Pepper Inc. As many of its customers are small foodservice operators, the company also compete with cash and carry and club stores (physical and on-line), such as Costco, Sam’s Club and Restaurant Depot and on-line retailers, such as Amazon. History Farmer Bros. Co. was founded in 1912. The company was incorporated in California in 1923 and reincorporated in Delaware in 2004..