EX-99.1 2 d284095dex991.htm INVESTOR PRESENTATION SLIDES IN USE BEGINNING JANUARY 12, 2012

INVESTOR PRESENTATION JANUARY 2012 Exhibit 99.1

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 2 Certain statements contained in this presentation, including, but not limited to, statements regarding the development and growth of our business, our intent, belief or current expectations, primarily with respect to future operating performance and the products and services we expect to offer and other statements contained herein regarding matters that are not historical facts 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. Stockholders and other readers should not place undue reliance on the forward- looking statements, which speak only as of the date of this presentation. 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, our ability to successfully integrate the CBI and DSD Coffee Business acquisitions, 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, our continued success in attracting new customers, variances from budgeted sales mix and growth rates, weather and special or unusual events, and changes in the quality or dividend stream of third parties’ securities and other investment vehicles in which we have invested our assets, as well as other risks described from time to time in our filings with the Securities and Exchange Commission.

FARMER BROTHERS OVERVIEW 3 Leading manufacturer, wholesaler and distributor of coffee, tea and culinary products • Founded in 1912 • Today, the country’s largest direct store delivery (DSD) coffee company Differentiated business model • Most complete local, regional and national DSD network in the coffee industry • Unique low cost production capabilities • Unparalleled distribution network serving multiple segments of foodservice and retail channels Experienced and motivated management team • Significant experience across consumer branded, packaged good and beverage companies FY11 Revenue - $464M

FARMER BROTHERS KEY INVESTMENT HIGHLIGHTS 4 A recognized leader in both premium and cost competitive product offerings Product Offering Leading national direct delivery footprint National Coverage Opportunities to continue to realize synergies from the recent acquisitions Acquisition Synergies State of the art development and production capabilities Technical Expertise Leverage customer base of 63,000 and one of the most experienced sales, marketing and operations teams in the industry Market Position

COFFEE AND TEA MARKETS CONTINUE TO GROW 5 1 Mintel Coffee & Tea (2010); 2 National Coffee Association Trends Report (2011); 3 New York Times (July 2011)

Division Description Farmer Brothers roasts and distributes coffee, tea and culinary solutions such as spices, soup bases and salad dressings through direct store delivery and broad line distribution. Coffee Bean International, an independent, wholly-owned subsidiary of Farmer Brothers, is one of the nation’s leading specialty coffee roasters, focusing on private brand retail programs. Custom Coffee Plan is a division of Farmer Bros. Co., an established leader in coffee service supplying business and hospitality venues within its operating regions. Spice Products Company is an industrial spice ingredients supplier which brings the highest levels of quality and consistency to the foodservice and industrial food manufacturing industries. 6 DIVERSIFIED BUSINESS MODEL TO TAKE ADVANTAGE OF GROWING INDUSTRY

NATIONWIDE DISTRIBUTION NETWORK 7 • Total facility square footage exceeds 1.5 million square feet • 6 distribution centers and 114 branch warehouses • Approximately 500 routes servicing 63,000 customers

OUR COFFEE BUSINESS TRANSITION 8 TODAY Traditional, Premium & Specialty Coffees PRE 2007 Only Traditional Coffee Three roasting facilities; DSD distribution in 48 states West Coast primarily Multiple brands: – Farmer Brothers – Superior – Coffee Bean International – Panache One brand: Farmer Brothers – Prebica – Cain’s – Metropolitan 2010 Vendor of the Year for both Sheetz, Inc. & Target Corporation Known primarily for supplying small operators Industry leading coffee development lab and green coffee purchasing capabilities Basic coffee resources High Touch Customer Service Strategy Since 1912

9 FARM 5 KEY POINTS OF DIFFERENTIATION Product - Our products include coffee and tea, along with a diverse selection of culinary products and other hot and cold beverages. Delivery - Nearly 3 million square miles of direct and multi-channel distribution. Service - Our high touch service model allows 63,000 foodservice customers to operate their business more efficiently. Equipment - We own and operate responsive nationwide equipment service coverage 24/7/365. Procurement - Deep, long lasting connections in coffee, tea and spices, combined with strong co- packing supplier partnerships in our other categories Procurement

QUALITY EXECUTION AT ALL TIERS Using small batch, large batch and continuous roasting processes in parallel, we achieve exceptional consistency and quality control over multiple tiers. 10

PRODUCTION CAPABILITIES TORRANCE 1 HOUSTON PORTLAND 11 coffee, spices coffee, tea coffee 1 Headquarters • Capacity Utilization Currently at 50 to 60%

NATIONAL ACCOUNT APPEAL 12 • Broad selection of consistently high quality products and services • Customization capabilities to support individual programs • National direct delivery distribution coverage • Responsive equipment service model with 24hr support • Comprehensive partnership model, including • Brand development / strategy • Coffee / tea market expertise and consumer insight trends • Strategic commodity cost management programs

WE SELL MORE THAN JUST COFFEE Our broad array of products provide diverse menu solutions for our customers 13

SIGNIFICANT CONSUMER ACCOUNTS 14

PRIVATE LABEL, WITH ADDED VALUE 15 • Accounts for approximately 15% of sales

MAJOR WINS / RECENT WINS 16

FARMER BROTHERS' GROWTH STRATEGY 17 • Increase synergies from the recent acquisitions of Coffee Bean International and Sara Lee • Grow all tiers of Foodservice business – leveraging our competitive advantages: • Low cost producer with available roasting capacity • Unparalleled coffee and allied products distribution network • Customer service excellence – high touch, expert capability • The most complete local, regional and national DSD network in the coffee industry • Grow average order size and improve gross margin by focusing on the following product categories: • Continue to grow national accounts business by leveraging our differentiated partnership model • Specialty coffee • Iced coffee • Iced Tea • Cappuccino mix • Culinary products

SR. MANAGEMENT TEAM/KEY SALES LEADERS 18 Name Title Prior Experience Jeffrey Wahba Interim Co-CEO, CFO and Treasurer Patrick Criteser Interim Co-CEO, President and CEO CBI Mark Harding Sr. VP of Operations Larry Garrett General Counsel Hortensia Gomez VP, Controller and Assistant Treasurer Joe Prewett VP of Marketing Steve Heyman VP of Sales Tom Mortensen VP of Field Operations - West Bryan Csehi VP of Field Operations – East Jay Wilkins SVP National Accounts - CBI

FINANCIAL OVERVIEW

RECENT OPPORTUNITIES AND CHALLENGES 20 • Coffee commodity market more than doubled from July 2010 to May 2011 but is currently about 20% below its 2011 highs • Farmer Brothers increased its prices to cover the cost increase but like its competitors lagged behind the rapid run-up in costs • Commodity costs have retreated more recently providing margin opportunities and the Company has “locked in” some of its future purchases which will provide more margin stability going forward

KEY 2011 EXECUTED INITIATIVES 21 • Aligned organization to meet current economic needs – reduced headcount by 10% while focusing resources on local markets • Significantly reduced operating expenses as a result of integration efforts – current run rate down more than 15% year over year • Despite unfavorable external factors, increased top line by 3% and grew National Account business by 20% • Took necessary pricing actions to maintain $/lb. margins • Instituted a comprehensive hedging strategy to help smooth the impact of the recently volatile coffee markets • Increased product breadth, technical expertise and marketing and sales capabilities leading to substantial increases in revenue per customer

5 YEAR REVENUE GROWTH TREND 22 CBI acquisition – April 2007; Sara Lee DSD acquisition – February 2009

FY11 ADJUSTED EBITDAE RECONCILIATION 23 • LIFO accounting impact of $40.3M in FY11 • Adjusted EBITDAE - $18.0M, $21.1M better than 2010 1 First full year after Sara Lee DSD Coffee and Tea acquisition; one time costs related to integration efforts included

Q1 FINANCIAL PERFORMANCE FY12 VS. FY11 24 Q1 – quarter ending September 30.

STRONG BALANCE SHEET WITH A FOCUS ON ASSET MANAGEMENT 25 • Inventory - includes LIFO reserve of $70.0 million • PP&E - includes over 50 owned properties (In millions) September 30, 2011 Cash and Cash Equivalents 4.6 Short-Term Investments 16.2 Accounts and Notes Receivable 44.6 Inventories 83.4 Other Current Assets 2.4 Net PP&E 108.7 Other Assets 18.1 Total Assets 277.9 Total Liabilities excluding Credit Facility 123.2 Credit Facility 33.4 Stockholders' Equity 121.3 Total Liabilities and Stockholders' Equity 277.9

INVESTMENT HIGHLIGHTS 26 A recognized leader in both premium and cost competitive product offerings Product Offering Leading national direct delivery footprint National Coverage Opportunities to continue to realize synergies from the recent acquisitions Acquisition Synergies State of the art development and production capabilities Technical Expertise Leverage customer base of 63,000 and one of the most experienced sales, marketing and operations teams in the industry Market Position

NASDAQ: FARM