OCS Success: Farmer Brothers Drives Growth Through Differentiation

Farmer Bros. Co. is proof that great things can happen when you dare to be different. What began as a coffee service business from the back of a bicycle shop in 1912 has grown to serve more than 60,000 food and beverage establishments across the U.S. and expanded to 115 branches nationwide.

This year alone the company reported a net sales increase of 3.3 percent to $545.9 million in fiscal 2015 and announced that it would be breaking ground on a new headquarters, state-of-the-art roasting facility, distribution center and coffee lab in Northlake, TX.

Success for the company did not happen overnight, however. Through its relentless investments in customers, service and technology—as well as line expansions and acquisitions—Farmer Brothers has established itself as a leading national roaster, manufacturer, wholesaler and distributor of premium coffees, teas, spices and culinary products in the U.S.

A crucial cup of coffee

Farmer Brothers began much like many of today’s vending and OCS operations: in an entrepreneurial style. In 1912 Roy E. Farmer, the company’s founder, thought it crucial that restaurants serve a quality cup of coffee, yet he couldn’t find one that did.

That’s when Farmer decided to make coffee service his mission. He opened Farmer Brothers Coffee Company that same year from the back of his brother’s bicycle shop. Over the next 100 years, Farmer Brothers grew branch-by-branch and customer-by-customer.

Since that time the company expanded its service locations to include gaming and casinos, healthcare, education, convenience stores and lodging. In 1968 the company introduced its Custom Coffee Plan—a division dedicated to office coffee service.

The secret is in the product

Since 1968 Farmer Brothers has been able to compete with other office coffee service suppliers by ensuring that it is providing the best possible service and offering unique products that meet changing consumer preferences.

The company has also been able to maintain its competitive advantage by continuing to roast and manufacture its own coffee products. “We have a very holistic process of integrating the sourcing, roasting and delivery of our coffee products,” said Jon Smith, Director Regional Sales-Office Coffee Division. “This allows us to deliver a consistently high-quality product at a very competitive price.”

The company's product line includes roasted coffee, liquid coffee, iced coffee and coffee-related products such as equipment, filters, sugar and creamers. Additionally, Farmer Brothers offers iced and hot teas, cappuccino, cocoa, spices and other culinary products. Its customers are able to easily and conveniently manage orders through the company’s online ordering system, too.

Today the company operates seven full-service Farmer Brothers Office Coffee branch locations and is expanding its service area throughout California.

Rise to the challenge

One of the biggest challenges the company faces in the OCS industry today is gaining access to decision makers.  “Many companies have implemented enhanced security policies that make it challenging to get to potential clients,” the Smith continued.  “Farmer Bros. is moving into the digital and social media space to communicate about our brand and the value-added options we have to offer.”

Customer service and business differentiation have set this OCS success story apart from its competition in more ways than one. In order to thrive for the next century and beyond, Farmer Brothers will continue to listen to customer demands and make itself a one stop shop for offices.