FARM » Topics » Overview

This excerpt taken from the FARM DEF 14A filed Oct 28, 2009.

Overview

        The Compensation Committee is a standing committee of the Board. The Compensation Committee's principal purposes are to discharge the Board's responsibilities related to compensation of

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the Company's executive officers and administer the Company's incentive compensation plan for executive officers and the Company's equity compensation plan. The Compensation Committee also is responsible for evaluating and making recommendations to the Board regarding director compensation.

        During fiscal 2009, the Compensation Committee met six times. Thomas A. Maloof serves as Chairman, and James J. McGarry and John H. Merrell serve as members of the Compensation Committee. The Board has determined that all Compensation Committee members are independent under the NASDAQ listing standards and the requirements of the SEC.

This excerpt taken from the FARM DEF 14A filed Oct 28, 2008.

Overview

        The Compensation Committee is a standing committee of the Board. Thomas A. Maloof serves as Chairman, and James J. McGarry and John H. Merrell serve as members of the Compensation Committee. Prior to his retirement on August 23, 2007, Lewis A. Coffman also served as a member of the Compensation Committee. Prior to serving out his term as a director on December 6, 2007, John Samore, Jr. served as a member of the Audit Committee. Mr. McGarry joined the Compensation Committee on December 6, 2007.

        The Compensation Committee is responsible for assisting the Board in fulfilling its fiduciary duties with respect to oversight of the Company's compensation plans, policies and programs, including assessing the overall compensation structure of the Company, reviewing all executive compensation programs, incentive compensation plans and equity-based plans, and determining executive compensation. The Compensation Committee also is responsible for evaluating and making recommendations to the Board regarding director compensation. The Compensation Committee met eight times in fiscal 2008. The Board has determined that all Compensation Committee members are independent under the NASDAQ listing standards.

These excerpts taken from the FARM 10-K filed Sep 15, 2008.

Overview

        During fiscal 2007 our primary focus was to continue our initiatives to strengthen sales. We provided additional resources and support to our national sales organization. In addition we completed

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the roll-out of our new product packaging in fiscal 2007, which we believe was well received by our customers. In fiscal 2007 we completed a significant upgrade to our ERP system, converted our Custom Coffee Plan Division to our ERP system and we began testing the mobile sales system. New branches in Shreveport, Louisiana and Nashville, Tennessee were opened in August 2007. Additionally, as a result of the CBI Acquisition, we acquired a coffee plant in Portland, Oregon.

Overview



        During fiscal 2007 our primary focus was to continue our initiatives to strengthen sales. We provided additional resources and support
to our national sales organization. In addition we completed



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HREF="#bg13501a_main_toc">Table of Contents






the
roll-out of our new product packaging in fiscal 2007, which we believe was well received by our customers. In fiscal 2007 we completed a significant upgrade to our ERP system,
converted our Custom Coffee Plan Division to our ERP system and we began testing the mobile sales system. New branches in Shreveport, Louisiana and Nashville, Tennessee were opened in August 2007.
Additionally, as a result of the CBI Acquisition, we acquired a coffee plant in Portland, Oregon.



This excerpt taken from the FARM 10-Q filed Feb 11, 2008.

Overview

 

Management’s initiatives to strengthen the Company’s sales and distribution network and improve sales, as described in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2007, continued during the first half of the fiscal year ending June 30, 2008 (“fiscal 2008”).

 

One major effort during the first quarter of fiscal 2008 was to identify a suitable location to relocate the CBI plant.  We believe the location selected and revised production layout will add both capacity and efficiencies to CBI’s operations.  We have developed a construction schedule and expect to relocate to the new facility by September 30, 2008.

 

During the second quarter of fiscal 2008 we continued our efforts to consolidate CBI’s accounting system with that of Farmer Bros.  A phased approach has been established.  The financial, manufacturing and sales systems are expected to be converted by the second quarter of fiscal 2009.

 

The new Farmer Bros. mobile sales software is currently being tested.  We expect to begin parallel testing in several branches during the third quarter of fiscal 2008.  Upon completion of a lengthy test phase we expect to begin implementation of the new software throughout our sales and distribution network in the fourth quarter of fiscal 2008.

 

Additional resources have been added to the CBI marketing program.  We expect CBI’s proven ability to develop national accounts will complement Farmer Bros.’ efforts to add such accounts.  We believe our combined product line will match any prospective customer’s needs, while offering a distribution network for those who require direct store delivery and a superior level of service.

 

This excerpt taken from the FARM 10-Q filed Nov 9, 2007.

Overview

        Management's initiatives to strengthen the Company's sales and distribution network and improve sales, as described in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2007, continued during the first quarter of the fiscal year ending June 30, 2008 ("fiscal 2008").

        One major effort during the first quarter of fiscal 2008 was to identify a suitable location to relocate the CBI plant. We believe the location selected and revised production layout will add both capacity and efficiencies to CBI's operations. We have developed a construction schedule and expect to relocate to the new facility by September 30, 2008.

        During this same period we have established a plan for consolidating CBI's accounting system with that of Farmer Bros. A phased approach has been established with most financial systems converted by the third quarter of fiscal 2008, with the manufacturing and sales systems converted by the end of fiscal 2008.

        The new Farmer Bros. mobile sales software is currently being tested. We expect to begin widespread testing in November 2007. Upon completion of a lengthy test phase we expect to begin implementation of the new software throughout our sales and distribution network in the fourth quarter of fiscal 2008.

        Additional resources have been added to the CBI marketing program. We expect CBI's proven ability to develop national accounts to complement Farmer Bros. efforts to add such accounts. We

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believe our combined product line will match any prospective customer's needs, we offer a distribution network for those who require direct store delivery and a superior level of service.

This excerpt taken from the FARM DEF 14A filed Oct 24, 2007.

Overview

The Compensation Committee is a standing committee of the Board. Thomas A. Maloof serves as Chairman, and John H. Merrell and John Samore, Jr. serve as members of the Compensation Committee. Prior to his retirement on August 23, 2007, Lewis A. Coffman also served as a member of the Compensation Committee.

The Compensation Committee is responsible for assisting the Board in fulfilling its fiduciary duties with respect to oversight of the Company’s compensation plans, policies and programs, including assessing the overall compensation structure of the Company, reviewing all executive compensation programs, incentive compensation plans and equity-based plans, and determining executive compensation. The Compensation Committee also is responsible for evaluating and making recommendations to the Board regarding director compensation. The Compensation Committee met nine times in fiscal 2007. The Board has determined that all Compensation Committee members are independent under the listing standards of NASDAQ.

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This excerpt taken from the FARM 10-K filed Sep 13, 2007.

Overview

In fiscal 2005, management developed a number of short and long term initiatives to strengthen the Company’s sales and distribution network and improve sales. Our efforts were focused primarily on enhancing our brand identification, expanding our product line and customer base and improving our sales and distribution efficiency. Our initiatives included:

·       Promotion of our brand with new packaging throughout the product line, design and distribution of new point of sale marketing materials for our customers, and expanding our trade show schedule throughout our marketing area.

·       Introduction of new products which included fruit smoothies, an expanded line of teas, liquid coffee and some seasonal products.

·       Expansion of our customer base through a national accounts organization to solicit large customers and national accounts.

This excerpt taken from the FARM 10-Q filed May 8, 2007.

Overview

Management’s initiatives to strengthen the Company’s sales and distribution network and improve sales, as described in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2006, continued during the third quarter of the fiscal year ending June 30, 2007 (“fiscal 2007”), and are updated as follows:

·                  Promotion of our BRAND.

·                  The roll-out of new packaging began in October 2006, and will continue through the remainder of fiscal 2007.

·                  Introduction of New Products.

·                  We believe the regular introduction of new products will engage our customers, both existing and potential, and further brand awareness.  The acquisition of Coffee Bean International, Inc (“CBI”) in the fourth quarter of fiscal 2007 adds the “Panache” brand of more than 100 SKU’s of specialty coffee.

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·                  Expansion.

·                  In an effort to expand our geographic presence, we opened a branch in Shreveport, Louisiana during the third quarter of fiscal 2007 and plan to open a branch in Nashville, Tennessee by the end of fiscal 2007.

·                  We continue to implement changes to our information systems, which we expect over time will lead to lower operating costs.  A major upgrade to our ERP system was installed during the third quarter of fiscal 2007.  The development of the sales system has resumed and  testing  is expected to begin during the fourth quarter of fiscal 2007.

·                  Although our purchase of Coffee Bean International Inc.  (“CBI”) closed in the fourth quarter of fiscal 2007, much of the analysis, due diligence and negotiations occurred in the third quarter.  This acquisition moves the Company into the growing market for specialty coffee in which we believe CBI is the premier national roaster.  CBI is, like Farmer Bros. , a wholesaler, with specialties that complement our operations.  CBI has a strong independent coffee house business, as well as national chain accounts and national private label retail business.

This excerpt taken from the FARM 10-Q filed Feb 9, 2007.

Overview

Management’s initiatives to strengthen the Company’s sales and distribution network and improve sales, as described in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2006, continued during the second quarter of the fiscal year ending June 30, 2007 (“fiscal 2007”), and are updated as follows:

·                  Promotion of our BRAND.

·                  Our new product packaging and point of sale marketing materials are expected to further establish brand awareness and enhance the image of our product line.

·                  The roll-out of new packaging began in October 2006, and will continue through the remainder of fiscal 2007. We believe that our new packaging will help stimulate sales of our allied products.

·                  Introduction of New Products.

·                  We believe the regular introduction of new products will engage our customers, both existing and potential, and further brand awareness.

·                  During the second quarter of fiscal 2007, we continued our introduction of new products. In particular, we expanded our line of canned coffees to include Premium, Premium Decaf, 100% Colombian, Dark-Roast and a seasonal Holiday Blend. Additionally, we introduced a new bag coffee, Arabica Rush. These items have been favorably received and we believe are helping our sales force reintroduce our entire product line.

·                  Expansion and Cost Control.

·                  In an effort to expand our geographic presence, we opened a new branch in Cincinnati, Ohio during the most recent fiscal quarter and expect to open a branch in Shreveport, Louisiana by the end of fiscal 2007.

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·                  We continue to implement changes to our information systems, which we expect over time will lead to lower operating costs. A major upgrade to our ERP system will be installed during the third quarter of fiscal 2007, with testing of the sales system expected during the fourth quarter of fiscal 2007.

This excerpt taken from the FARM 10-Q filed Nov 9, 2006.

Overview

Management’s initiatives to strengthen the Company’s sales and distribution network and improve sales, as described in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2006, continued during the first quarter of the fiscal year ended 2007 (“fiscal 2007”), and are updated as follows:

·                  Promotion of our BRAND.

o                 Our new product packaging and point of sale marketing materials are expected to further establish brand awareness and enhance the image of our product line.

o                 The roll-out of new packaging began in October 2006, and continues as old stock is depleted.

o                 Our expanded trade show calendar was highlighted by our presence at the Western Foodservice & Hospitality Expo in Los Angeles, California in August.

·                  Introduction of New Products.

o                 We believe the regular introduction of new products will engage our customers, both existing and potential, and further brand awareness.

o                 During the first quarter of fiscal 2007, we continued to develop and introduce new products.  In particular, we expanded our line of canned coffees to include Premium, Premium Decaf, 100% Columbian, Dark-Roast and a seasonal Holiday Blend. Additionally, we introduced a new bag coffee, Arabica Rush, which has been favorably received.

·                  Expansion and Cost Control.

o                 In an effort to expand our geographic presence, we anticipate opening new branches in Cincinnati, Ohio and Shreveport, Louisiana in early 2007.  We intend to transfer certain key personnel from our existing distribution system to staff these new branches.

o                 During the first quarter of fiscal 2007, we negotiated favorable pricing on certain non-coffee raw materials in an effort to reduce operating costs.  There can be no assurance, however, that such favorable pricing will continue.

o                 We continue to implement changes to our information systems, which we expect over time will lead to lower operating costs.

This excerpt taken from the FARM 10-K filed Sep 13, 2006.

Overview

Management has a number of short and long term initiatives underway designed to strengthen the Company’s sales and distribution network and improve sales. Our efforts are focused primarily on enhancing our brand identification, expanding our product line and customer base and improving our sales and distribution efficiency. Our initiatives include:

·       Promotion of our BRAND.

·        We have designed and ordered new packaging for our entire product line. The updated designs employ the use of bright colors to better appeal to modern tastes. The roll-out for the new packaging is expected to begin in October 2006.

·        We have designed, and are in the process of producing and distributing new point of sale marketing materials to help our customers increase sales of our products. Many of these materials were distributed to customers during fiscal 2006 and others will be distributed in connection with the new packaging roll-out.

·        We are promoting our brand and product line in an expanded trade show schedule throughout our marketing area to highlight the “new spirit” our packaging represents.

·       Introduction of New Products.

·        During fiscal 2006 we developed a variety of new products designed to appeal to both new and existing customers, including horchata (a sweet rice drink flavored with cinnamon and almond), fruit smoothies (iced beverages), an expanded line of teas, liquid coffee and some seasonal products (pumpkin pie cappuccino). We believe these new products afford us with an opportunity to engage our customers and cross-sell other products and share ideas for future new products.

·       Expansion of Customer Base.

·        In an effort to expand our customer base we have created a National Accounts organization to solicit larger customers and national accounts. This group is currently comprised of 15 professionals who are working from our existing branch facilities to reach potential customers throughout the country.

·       Improved Sales and Distribution Efficiency.

·        In an effort to cut costs and improve our sales and distribution efficiency we have evaluated our branches, routes and sales staff responsibilities. In connection with these efforts we have reduced staffing and consolidated routes in certain areas, while increasing staffing in areas where we are experiencing growth.

·        During fiscal 2007 we expect to implement new Route Sales application software to further enhance our ability to evaluate customer, product and route profitability.

Management continues to concentrate on improving our gross profit margins and controlling our selling and general and administrative expenses. Although we were able to maintain gross profit margins in fiscal 2006, as compared to fiscal 2005, inflationary pressures on the cost of our raw materials and packaging supplies remains a threat to our ability to maintain these margins in the future. Despite efforts to reduce operating costs during fiscal 2006, certain expenses are beyond our control, such as gasoline and diesel prices which directly impact our distribution costs. Moreover, during fiscal 2006 we also experienced

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an increase of approximately $1,000,000 in compensation expenses associated with the cost of the National Accounts organization. We continue to evaluate all departments in an effort to eliminate unnecessary procedures and staff and align needed staff skills to match business requirements through re-training or new hires.

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