Farmer Brothers Co
Farmer Brothers is a U.S.-based coffee and beverage company that roasts, wholesales, and distributes coffee, tea, and allied products under its own brands and private labels. It also services coffee and tea equipment and supports customers with delivery, beverage planning, and other value-added services through a nationwide direct-store-delivery network.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRoast and ground coffee, liquid coffee, cold brew, and certified coffee offerings.
Hot and iced tea products sold in multiple formats for foodservice and retail channels.
Spices, mixes, sauces, syrups, and coffee-related consumables used alongside beverage programs.
Cappuccino, cocoa, granitas, and ready-to-drink or blender-based beverage products.
Installation, repair, refurbishment, and lifecycle support for coffee and tea equipment.
Customers
The company sells mainly to foodservice customers that need regular delivery, equipment support, and a broad beverage program rather than just packaged coffee. Its customer base includes independent restaurants, chains, hotels, casinos, healthcare facilities, convenience stores, grocery chains, foodservice distributors, and some direct-to-consumer buyers through e-commerce.
Independent restaurants and foodservice operators buy coffee, tea, and allied products for recurring on-premise beverage service.
Restaurant, convenience store, and other chain customers buy at scale and value consistent supply, pricing, and service.
Hotels, casinos, and healthcare facilities buy beverage and culinary products for high-volume, standardized service environments.
Grocery chains buy private-label and branded coffee and tea products for consumer resale.
Distributors buy for downstream resale, while consumers buy selected products directly online.
Strategy
The company is focused on improving manufacturing and network efficiency while preserving service quality for foodservice customers. It is also trying to grow in premium and specialty coffee, use its DSD network more effectively, and expand customer value through sustainable sourcing and equipment services.
Lower unit costs and better route density are needed to improve margins without reducing service.
The nationwide delivery network is a core competitive asset for retention, penetration, and service quality.
Premium coffee and tea formats can support mix improvement and defend against commodity-style competition.
Geography
Farmer Brothers is primarily a U.S. business, with production in Portland, Oregon and distribution centers in Illinois, California, and New Jersey. Its nationwide direct-store-delivery network and third-party logistics coverage are central to serving customers across the country and to managing route density, inventory placement, and service levels.
Risks
Farmer Brothers is exposed to commodity cost volatility, tariffs, inflation, and customer demand pressure because it buys, roasts, and distributes coffee and related products in a competitive market. It also faces execution risk from network optimization, dependence on certifications and sustainability claims, and potential disruption from divestitures or strategic alternatives.
- Green coffee and commodity cost volatilityImpact: HighLikelihood: High
The company sources coffee and other inputs that can move sharply in price, affecting margins before pricing can fully adjust.
Exposure: Coffee procurement and hedging
- Economic slowdown and inflationImpact: HighLikelihood: High
Foodservice and institutional customers may reduce volumes or trade down when budgets are pressured.
Exposure: Customer demand and pricing
- Tariffs and trade policy changesImpact: MediumLikelihood: Medium
Management cited tariffs and potential modifications as a source of cost volatility and uncertainty.
Exposure: Imported inputs and supply chain costs
- Divestiture and strategic alternative executionImpact: MediumLikelihood: Medium
Asset sales or strategic reviews can distract management and create transaction, transition, and liability risks.
Exposure: Potential asset sales and restructuring
- Certification and sustainability claimsImpact: MediumLikelihood: Low
Loss of organic, kosher, or other certifications could weaken differentiation and customer trust.
Exposure: Certified coffee and tea products
Accounting
Judgemental itemsNon-designated derivatives produced gains and losses that materially affected other income and earnings comparability.
Impact: Can swing quarterly results even when underlying demand is stable
Fixed-price contracts lock in future inventory costs and can create exposure if market prices move.
Impact: Affects gross margin and working capital planning
Operating and finance lease commitments are significant because the business relies on warehouses, branches, and distribution assets.
Impact: Impacts reported leverage, EBITDA adjustments, and cash flow presentation
Net losses on disposal of assets and strategic alternative costs can materially affect reported earnings.
Impact: Can obscure core operating performance
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Last updated: 24/09/2026