Coffee Bean International, a Fast-Growing Roaster of Specialty Coffees, Announces New Ownership
PORTLAND, Ore. — (BUSINESS WIRE) — April 30, 2007—Coffee Bean International today announced that it has been acquired by Farmer Bros. Co. (Nasdaq: FARM). Founded in Portland in 1972, Coffee Bean Intl (“CBI”) is one of North America’s first roasters of specialty coffees. It is regarded as one of the industry’s premier roaster/wholesalers, focusing on the upper end of the quality spectrum. Farmer Bros. is a coffee industry pioneer, providing coffee and allied products to the food service industry since 1912.
“Our unique company has grown into one of the largest specialty roasters in the U.S., notably without changing the way we roast coffee or the quality of the coffee that we produce,” said Patrick Criteser, the President and CEO of Coffee Bean Intl. “With the support and resources of Farmer Bros., we will be better positioned to achieve our vision of becoming the world’s preeminent wholesale specialty roaster.”
Farmer Bros. is planning near-term investments in the Coffee Bean Intl business, including improvements to the roasting plant in Portland that will increase CBI’s capacity. Coffee Bean Intl will remain one of the few companies with the ability to achieve significant production volumes solely using “artisan” hand-roasting methods that maximize freshness and flavor.
Coffee Bean International will continue to be based in Portland, and will operate as a separate company under its current leadership and management team. There are few overlaps between the two companies, which compete for different customers and offer distinct products and services. Coffee Bean Intl provides unique specialty coffees to customers such as coffee houses and private-label retailers. Farmer Bros. primarily serves a variety of traditional coffee blends at different prices points to restaurants such as independent operators and regional and franchise chains, as well as other institutional buyers such as hotels, convenience stores and hospitals. Farmer Bros., through its far-reaching distribution network, competes on the quality and cost of its coffee, its personalized service and timely delivery of coffee and its wide range of related products.
“We believe CBI will help re-ignite the growth of Farmer Bros. by establishing an immediate presence in the fast-growing specialty coffee segment,” said Rocky Laverty, President and Chief Operating Officer of Farmer Bros. “As CBI gains access to our capital strength and distribution capabilities, we believe it will be able to continue to capitalize on the opportunities for its specialty coffees and private-label programs.”
The specialty coffee market is the fastest-growing segment of the coffee market, and CBI’s sales have grown over the last three years at a compounded annual rate of 21%.
“CBI has a well-earned reputation for the highest quality products and for the effectiveness of its marketing and brand management programs. We are thrilled that the people who built this excellent reputation will continue with us in Portland,” said Guenter Berger, Chairman and CEO of Farmer Bros. “Coffee Bean will benefit from the resources of a larger coffee company that appreciates and supports its vision of helping customers ‘increase desire and appreciation for true artisan-roasted specialty coffees.’ In addition, we are looking forward to tapping its expertise and products in specialty coffee.”
About Coffee Bean International
Coffee Bean International Inc., founded in 1972 and headquartered in Portland, Oregon, is one of North America’s first roasters of specialty coffees. It is regarded as one of the industry’s premier roaster/wholesalers, focusing on the upper end of the quality spectrum. It serves more than 2,000 active customers, including many independent specialty coffee retailers and prestigious larger, quality-oriented chains. For more information, go to: www.coffeebeanintl.com
About Farmer Bros.
Farmer Bros. Co. is an institutional coffee roaster that sells a variety of coffee and allied products to the food service industry. The Company's signature trucks and vans bearing the "Consistently Good" logo are seen throughout Farmer Brothers' 28-state service area. Farmer Brothers has paid a dividend in every year since 1953, increased its dividend in every year since 1997, and its stock price has risen on a split-adjusted basis from $1.80 a share in 1980. For more information, go to: www.farmerbroscousa.com
Forward-Looking Statements
Certain statements contained in this report regarding the risks, circumstances and financial trends that may affect our future operating results, financial position and cash flows are not based on historical fact and are forward-looking statements within the meaning of federal securities laws and regulations. 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. These forward-looking statements can be identified by the use of words like "anticipates," "feels," "estimates," "projects," "expects," "plans," "believes," "intends," "will," "assumes" and other words of similar meaning. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Users should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. The Company undertakes no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, fluctuations in availability and cost of green coffee, competition, organizational changes, the impact of a weaker economy, business conditions in the coffee industry and food industry in general, the Company's continued success in attracting new customers, variances from budgeted sales mix and growth rates, and weather and special or unusual events, as well as other risks described in this report and other factors described from time to time in the Company's filings with the SEC.
CONTACT: Abernathy MacGregor Group Jim Lucas/Whitney Hays, 213-630-6550
