News
New Texas headquarters
A challenging move from its Torrance, Calif., ancestral home to Ft. Worth, Texas has been good for business at Farmer Bros. coffee but not good enough to appease family members who call the move “misguided.”
The company reported that its net income improved from a loss of $26.6 million in fiscal 2012 to net income of $89.9 million in fiscal 2016.
Since March 2012, when the board appointed Michael Keown as president and c.e.o. and the management team initiated its turnaround strategy, the company’s stock price has appreciated more than 225%, increasing share value by more than $400 million.
The corporate relocation plan is expected to produce cost savings of approximately $18-20 million annually and, as of year‑end fiscal 2016, the company had already achieved more than half of the expected savings.
Carol Farmer Waite, whose grandfather founded Farmer Brothers, sent a letter to the board in August announcing the creation of a group called “Save Farmer Bros.” with the intention of seeking three board seats and replacing Keown.
The performance was good enough to win the praises of Richard Farmer, a member of the founding family supporting Keown. The company recently broke ground on a 537,000 sq. ft. roasting and distribution facility that will employ 300 workers next year.