NORTHLAKE, Texas, U.S. — Farmer Bros. Co. has announced the opening of a new 156,600 sq. ft. distribution center in Rialto, California. The Rialto facility opening reflects the successful execution of the Company’s last major supply chain optimization initiative as part of its broader turnaround strategy. As previously announced, the optimization plan also included closing the Houston, Texas manufacturing facility and capacity enhancements made to the Company’s state-of-the-art Dallas-Fort Worth facility.
With 40% of Farmer Brother’s customers located on the West Coast, the Company expects this new distribution center to enable the Company to fulfill product orders more quickly, improve delivery times and provide better customer service, leading to meaningful transportation and distribution efficiencies. The facility is also designed to mitigate future capital expenditure requirements for customer equipment with its new coffee brewing equipment (“CBE”) refurbishing center. These efficiencies, combined with the closing of the Houston facility, the enhanced Dallas-Fort Worth facility, and HighJump handheld solution’s rollout, are expected to drive improved Company performance as the economy recovers from the impacts of the COVID-19 pandemic.
Deverl Maserang, Chief Executive Officer of Farmer Bros. Co., commented, “I’m excited to be returning Farmer Brothers to its West Coast roots with this outstanding new facility. It will significantly improve our supply chain and customer service while also driving benefits for our shareholders. I want to commend our team for their rapid and successful execution in getting the Rialto facility ready by our early 2021 deadline. We began construction on the facility in October, loaded inventory in late December, and by early January of this year, we successfully fulfilled our first outbound shipment.”
Mr. Maserang continued, “The opening of this facility marks a pivotal point in the execution of our turnaround strategy. We’re now properly positioned for enhanced post-pandemic performance and will begin to shift our broader strategy from optimization and stabilization to accelerating growth and innovation.”
The new West Coast facility will provide better CBE servicing and faster turnaround times for customers. It boasts 18 docking doors and 26 trailer storage spaces, facilitating improved delivery capabilities within the Company’s network. Further, given the facility’s strategic location, the Company now has the option to leverage other transportation modes, such as air, rail, and ocean. The facility will distribute products to the Company’s branch locations and service equipment through the Company’s specialized CBE technicians in seven key U.S. states.
Maurice Morange, Chief Sales Officer, added, “This is an exciting time for Farmer Brothers, and we are looking forward to delivering on the promise of the Rialto facility with customers and supply chain partners. This DC will enable even higher levels of support to our customers and provide a site for evaluation of new service and support technologies. All to benefit our valued customers.”
