Irvine, Calif., May 14 - Diedrich Coffee, Inc. has completed its planned transition to a premier roaster and wholesaler of its Diedrich Coffee, Gloria Jean's Coffee and Coffee People brands.
In the fall of 2007, the company announced its intention to divest its retail and distribution operations in order to focus exclusively on roasting and wholesale sales. During 2008, the company exited from all company-owned retail operations, including Diedrich Coffee coffeehouses and Coffee People coffeehouses, selling the sites to a major chain of coffee houses. In March 2009, the company announced the sale of its domestic Gloria Jean's retail franchise company, retaining the rights to Gloria Jean's branded K-Cups(R) for the Keurig Single-Cup Brewing System.
As a final step in the transition, Diedrich Coffee has appointed major beverage specialist, Quick Dispense, Inc., as a Master Distributor in foodservice. Quick Dispense offers total market support (sales, service, equipment and product distribution) in Arizona, California, Colorado, Idaho, Nevada, Utah and Wyoming. In addition to servicing the more than 300 existing Diedrich Coffee foodservice accounts in Southern California, the distribution agreement offers Diedrich Coffee access to more than 7,000 QDI accounts across these seven western states.
"Quick Dispense enhances the services offered to our current local foodservice customers," said J. Russell Phillips, president and CEO of Diedrich Coffee, "as well as immediately expands our brand reach to new foodservice customers outside the Southern California market."
According to Paul Heeschen, Diedrich Coffee's chairman of the board: "Signing QDI also represents a milestone in the implementation of our strategy to capitalize on the strong growth of the wholesale specialty coffee market, and particularly in the single-serve premium coffee market with our three brands of fine specialty coffees - Diedrich Coffee, Gloria Jean's Coffees and Teas, and Coffee People."
"As an outcome of this strategy," continued Heeschen, "we have been realizing dramatic growth in this more profitable wholesale business as our renewed focus meets the increasing demand for specialty coffees in homes, restaurants, and offices. These markets are being addressed by online, big box retail and foodservice channels, with the demand for K-Cups especially on the rise." Diedrich Coffee is one of only four roasters under license to produce K-Cups for Keurig's increasingly popular single-cup brewing system.