On February 17, Farmers Bros. Co. announced the appointment of David G. Robson as Treasurer and Chief Financial Officer, effective February 20, 2017, as well as other executive management changes.
“The addition of David strengthens both the overall depth and skill of our management team,” said President and CEO, Mike Keown. “David’s strong experience in managing large scale improvements during turnarounds makes him an ideal fit for our team as we continue to make significant progress on our turnaround strategy. I know David will provide us with the financial leadership in support of our key initiatives, which carries the goals of enhancing efficiencies and driving profitability higher.”
Additionally, the Company announced the promotion of Scott A. Siers to the executive management team. Mr. Siers is currently the Senior Vice President and General Manager for Farmer Bros.’ Direct Ship business unit.
“Since joining Farmer Brothers in 2013, Scott has been instrumental in driving business growth and executing on our turnaround strategy,” said Mr. Keown. “As part of our sales and operations team, Scott’s tireless work ethic has led to new business volume growth in our direct ship business. We look forward to his continued contributions.”
Farmer Bros. also announced Barry C. Fischetto, Senior Vice President of Operations, has resigned from the Company, effective immediately, to pursue other opportunities.
Mr. Keown concluded, “I would like to thank Barry for his contributions during his time with Farmer Bros. We wish him the best on his future endeavors.”
Biographies for David G. Robson and Scott A. Siers.
Continuing with appointments, Farmers Bros. Co. announced the appointment of Ellen D. Iobst as Chief Operations Officer on February 20, 2017, effective immediately. Ellen D. Iobst's biography.
Restructure Expected to Better Serve Customers and Improve Sales Growth
The company recently announced a restructuring of its direct-store-delivery (DSD) sales model. The Company believes changing from a geographic to a channel-based selling strategy will better serve customers and improve sales growth while maintaining the value-add provided by the DSD delivery and service model. The new, channel-based sales strategy will empower the sales organization to better address the unique needs of each customer channel and more quickly respond to industry trends.
“The reorganization of our DSD operations is the next step in Farmer Brothers’ transformation to strengthen our position as an industry leader,” said President and CEO, Michael Keown. “With the corporate relocation plan nearly complete and our new state-of-the-art manufacturing facility coming online, it is essential that we focus on selling strategies that will deepen our customer relationships, allow us to create a comprehensive support structure, and enhance our marketing efforts. Once the DSD restructure is complete, I am confident that we’ll emerge as a more productive company with a broader reach and sharper execution.”
Farmer Bros. is targeting approximately $2.0 million - $2.6 million in annual cost savings associated with the restructuring. The Company anticipates that it will begin to recognize cost benefits in the fourth quarter of fiscal 2017 with annualized savings from the restructuring plan beginning in the second quarter of fiscal 2018.
As part of the reorganization, Farmer Bros. estimates that it will recognize approximately $3.7 million - $4.9 million of pre-tax restructuring charges, including $1.9 million - $2.7 million in employee separation related costs, by the end of the second quarter of fiscal 2018.
