Farmer Brothers Sets Timing for Wind Down of Manufacturing Operations in Houston
Farmer Bros. Co. (NASDAQ: FARM) will wind down its manufacturing operations in Houston, Texas, with production ending in late January 2021. This decision is part of the company’s supply chain optimization strategy, which includes enhancing its Dallas-Fort Worth facility and establishing a new distribution site in Rialto, California. CEO Deverl Maserang emphasized that this tough choice aims to strengthen the company's competitive position and future viability, while committing to supporting affected employees with severance and benefits.
- Initiation of supply chain optimization strategy.
- Improvements planned for Dallas-Fort Worth facility.
- New distribution facility to be established in Rialto, California.
- Closure of Houston manufacturing operations may result in job losses.
- Potential short-term disruptions in production during transition.
NORTHLAKE, Texas, Nov. 11, 2020 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) (the “Company”), a national coffee roaster, wholesaler and distributor of coffee, tea, and culinary products, today announced that it will implement the wind-down of manufacturing operations in Houston, Texas in December 2020, with the last day of production expected in late January 2021.
The Houston action is part of Farmer Brothers’ supply chain optimization strategy, which also includes significant improvements to the Company’s Dallas-Fort Worth facility and a new West Coast distribution facility in Rialto, California. Farmer Brothers will continue to maintain a sales presence in the Houston area.
Deverl Maserang, CEO of Farmer Brothers, commented, “The de-risking of our Houston operation is an unfortunate but necessary step in our long-term production and distribution strategy, which is aimed at better serving our customers, strengthening our competitive position both regionally and nationally, and securing a strong future for Farmer Brothers. Decisions like these are extremely difficult for Farmer Brothers given our deep family values, and we are committed to supporting affected employees with severance and access to their benefits.”
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.
Contact
Ellipsis
Jeff Majtyka & Kyle King
Investor.relations@farmerbros.com
(646) 776-0886
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