NORTHLAKE, Texas, Feb. 21, 2017 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ:FARM) announced a restructuring of its direct-store-delivery (DSD) sales model. The Company believes changing from a geographic to a channel-based selling strategy will better serve customers and improve sales growth while maintaining the value-add provided by the DSD delivery and service model. The new, channel-based sales strategy will empower the sales organization to better address the unique needs of each customer channel and more quickly respond to industry trends.
“The reorganization of our DSD operations is the next step in Farmer Brothers’ transformation to strengthen our position as an industry leader,” said President and CEO, Michael Keown. “With the corporate relocation plan nearly complete and our new state-of-the-art manufacturing facility coming online, it is essential that we focus on selling strategies that will deepen our customer relationships, allow us to create a comprehensive support structure, and enhance our marketing efforts. Once the DSD restructure is complete, I am confident that we’ll emerge as a more productive company with a broader reach and sharper execution.”
Farmer Bros. is targeting approximately $2.0 million - $2.6 million in annual cost savings associated with the restructuring. The Company anticipates that it will begin to recognize cost benefits in the fourth quarter of fiscal 2017 with annualized savings from the restructuring plan beginning in the second quarter of fiscal 2018.
As part of the reorganization, Farmer Bros. estimates that it will recognize approximately $3.7 million - $4.9 million of pre-tax restructuring charges, including $1.9 million - $2.7 million in employee separation related costs, by the end of the second quarter of fiscal 2018.
About Farmer Bros. Co.
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 and convenience store chains, hotels, casinos, hospitals, and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer-facing branded coffee and tea products.
