Farmer Brothers Coffee started investigating ways to improve shareholder value in July 2025, forming a committee to review options like mergers or sales. The century-old coffee company announced a strategic alternatives review to evaluate deals that could elevate returns for investors. A team of independent directors is examining potential moves, including mergers, acquisitions, or selling parts—or all—of the business. Analysts note the exploration of strategic alternatives could lead to share price volatility, with investor speculation driving potential swings in the coming months.
Century-old Farmer Brothers Coffee forms committee to explore strategic options, including mergers, acquisitions, or a potential sale.
North Point Mergers and Acquisitions, Inc. was hired as a financial advisor, while law firm Winston & Strawn LLP will handle legal matters. The company hasn’t set a deadline or promised any specific outcome.
Founded in 1912, Farmer Brothers roasts and distributes coffee, tea, and culinary products to restaurants, hotels, hospitals, and grocery stores. It owns several brands, like Boyd’s Coffee and Sum>One Coffee Roasters, a newer premium line launched to attract specialty coffee buyers. Coffee culture has transformed into a worldwide phenomenon, influencing consumer preferences and expectations from coffee companies.
After selling part of its business in 2023, the company focused on cutting costs and streamlining operations. Executives say these changes helped lift gross margins to 42.1% in mid-2025, up from 40.1% a year earlier. Quarter-three sales reached $82.1 million, though its market value stayed around $29 million—a figure some analysts called low for its $341 million annual revenue. Farmer Brothers’ stock has plummeted more than 50% over the past year, trading near its 52-week low and reflecting investor skepticism about the company’s turnaround prospects.
The strategic review comes as Farmer Brothers tries to capitalize on recent improvements. Management believes the company’s progress might not be fully reflected in its stock price, making this a “timely” moment to consider deals.
Potential buyers could include larger food distributors or private equity firms seeking a stable, recognizable brand. The company hasn’t ruled out partnerships or joint ventures but stressed no decisions have been made.
Investors will wait for updates, as Farmer Brothers plans to share news only if a deal moves forward. The process highlights challenges older companies face in staying competitive amid shifting consumer tastes and industry consolidation.
With over a century in business, Farmer Brothers now faces a pivotal choice: remain independent or join forces with a partner to secure its future. Either way, its next move could reshape the U.S. coffee distribution landscape.
