Farmer Brothers Announces Opening of West Coast Distribution Center
03 February 2021 - 8:05AM
Farmer Bros. Co. (NASDAQ: FARM) (the “Company”), a leading national
coffee roaster, wholesaler, and distributor of coffee, tea, and
culinary products, today announced the opening of a new 156,600 sq.
ft. distribution center in Rialto, California.
The Rialto facility opening reflects the successful execution of
the Company’s last major supply chain optimization initiative as
part of its broader turnaround strategy. As previously announced,
the optimization plan also included closing the Houston, Texas
manufacturing facility and capacity enhancements made to the
Company’s state-of-the-art Dallas-Fort Worth facility.
With 40% of Farmer Brother’s customers located on the West
Coast, the Company expects this new distribution center to enable
the Company to fulfill product orders more quickly, improve
delivery times and provide better customer service, leading to
meaningful transportation and distribution efficiencies. The
facility is also designed to mitigate future capital expenditure
requirements for customer equipment with its new coffee brewing
equipment (“CBE”) refurbishing center. These efficiencies, combined
with the closing of the Houston facility, the enhanced Dallas-Fort
Worth facility, and HighJump handheld solution’s rollout, are
expected to drive improved Company performance as the economy
recovers from the impacts of the COVID-19 pandemic.
Deverl Maserang, Chief Executive Officer, commented, “I’m
excited to be returning Farmer Brothers to its West Coast roots
with this outstanding new facility. It will significantly improve
our supply chain and customer service while also driving benefits
for our shareholders. I want to commend our team for their rapid
and successful execution in getting the Rialto facility ready by
our early 2021 deadline. We began construction on the facility in
October, loaded inventory in late December, and by early January of
this year, we successfully fulfilled our first outbound
shipment.”
Mr. Maserang continued, “The opening of this facility marks a
pivotal point in the execution of our turnaround strategy. We’re
now properly positioned for enhanced post-pandemic performance and
will begin to shift our broader strategy from optimization and
stabilization to accelerating growth and innovation.”
The new West Coast facility will provide better CBE servicing
and faster turnaround times for customers. It boasts 18 docking
doors and 26 trailer storage spaces, facilitating improved delivery
capabilities within the Company’s network. Further, given the
facility’s strategic location, the Company now has the option to
leverage other transportation modes, such as air, rail, and ocean.
The facility will distribute products to the Company’s branch
locations and service equipment through the Company’s specialized
CBE technicians in seven key U.S. states.
Maurice Morange, Chief Sales Officer, added, “This is an
exciting time for Farmer Brothers, and we are looking forward to
delivering on the promise of the Rialto facility with customers and
supply chain partners. This DC will enable even higher levels of
support to our customers and provide a site for evaluation of new
service and support technologies. All to benefit our valued
customers.”
About Farmer Brothers
Founded in 1912, Farmer Bros. Co. is a national coffee
roaster, wholesaler, and distributor of coffee, tea, and culinary
products. The Company’s product lines include organic, Direct
Trade, and sustainably produced coffee. With a robust line of
coffee, hot and iced teas, cappuccino mixes, spices, and
baking/biscuit mixes, the Company delivers extensive beverage
planning services and culinary products to its U.S. based
customers. 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 coffee
and consumer branded coffee and tea products, and foodservice
distributors.
Forward-Looking Statements
Certain statements in this press release constitute
“forward-looking statements.” When used in this communication, the
words “will,” “expects,” “anticipates,” “estimates” and “believes,”
and similar expressions and statements that are made in the future
tense or refer to future events or developments, are intended to
identify such forward-looking statements. Such forward-looking
statements are subject to risks, uncertainties and other factors
that could cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include, but
are not limited to, the extent and duration of the disruption to
business and customers related to the COVID-19 pandemic, levels of
consumer confidence, competition, changes in consumer preferences
including equipment preferences, ability and speed to ramp up
distribution in the new facility in Rialto, business conditions in
the coffee industry and food industry in general, weather and
special or unusual events, as well as other factors described from
time to time in our filings with the SEC. These statements are
based on management’s current expectations, assumptions, estimates
and observations of future events and include any statements that
do not directly relate to any historical or current fact; actual
results may differ materially due in part to the risk factors set
forth in our most recent annual, periodic and current reports filed
with the SEC. Undue reliance should not be placed on the
forward-looking statements in this communication, which are based
on information available to the Company on the date hereof, and the
Company assumes no obligation to update such statements.
Marketing Contact
Nathalie Oetzel noetzel@farmerbros.com
Investor Relations Contact
Ellipsis Jeff Majtyka & Kyle
KingInvestor.relations@farmerbros.com (646) 776-0886
Farmer Brothers (NASDAQ:FARM)
Historical Stock Chart
From Apr 2024 to May 2024
Farmer Brothers (NASDAQ:FARM)
Historical Stock Chart
From May 2023 to May 2024