Farmer Bros. Has Interim CEO
Farmer Bros. Co. named longtime executive Guenter W. Berger its interim chief executive following the death of Roy E. Farmer, the Torrance-based coffee roaster’s chairman and CEO.
Farmer, who lived in Huntington Beach, died Friday of a self-inflicted gunshot wound, said Jim Amormino, spokesman for the Orange County Sheriff-Coroner Department. He was 52.
The elevation of Berger, who previously was Farmer’s vice president of production, marks only the second time in the 93-year history of the commercial coffee company that it has been run by a non-family member. Roy E. Farmer, who was employed by Farmer Bros. for his entire adult life, in June succeeded his father, Roy F. Farmer, as chairman after the elder Farmer’s death a few months earlier.
The company was founded in 1912 as a small Los Angeles coffee roaster and has grown into a business with 1,100 employees in 28 states and about $190 million in annual revenue.
The Farmers were known for their rigid belief that the business should remain in the family’s control. However, shares of the company rose $2.38 to $24.87 on Nasdaq on Monday on speculation that the business could be sold. For several years a group of dissident shareholders has sought to have the Farmer family either sell the business or take it private.
The company has struggled in recent years as it has faced competition from gourmet roasters such as Starbucks Corp. and as the small, family-owned restaurants that are its best customers have lost ground to large chains. Farmer reported a 40% drop in quarterly earnings for the period ended Sept. 30.
Berger, 67, is a 44-year veteran of Farmer Bros. and has been responsible for the company’s Torrance inventory, production, coffee roasting and distribution operations.
“Guenter knows every aspect of our operations better than anyone, has earned loyalty and support from employees and suppliers alike,” said John Merrell, a Farmer director. “We are confident Guenter will maintain our focus in creating shareholder value as well as a stable workplace for the long term.”
