-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 zBZ/VuZlcdJr/DeO+vuyuA==

<SEC-DOCUMENT>0001181431-07-031272.txt : 20070509
<SEC-HEADER>0001181431-07-031272.hdr.sgml : 20070509
<ACCEPTANCE-DATETIME>20070509210935
ACCESSION NUMBER:		0001181431-07-031272
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070507
FILED AS OF DATE:		20070509
DATE AS OF CHANGE:		20070509

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIEDRICH COFFEE INC
		CENTRAL INDEX KEY:			0000947661
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-FOOD STORES [5400]
		IRS NUMBER:				330086628
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		28 EXECUTIVE PARK
		STREET 2:		SUITE 200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		9492601600

	MAIL ADDRESS:	
		STREET 1:		28 EXECUTIVE PARK
		STREET 2:		SUITE 200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sequoia Enterprises, L.P.
		CENTRAL INDEX KEY:			0001296809
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21203
		FILM NUMBER:		07834361

	BUSINESS ADDRESS:	
		STREET 1:		450 NEWPORT CENTER DRIVE, STE 450
		CITY:			NEWPORT BEACH
		STATE:			CA
		ZIP:			92662
		BUSINESS PHONE:		949-644-1850

	MAIL ADDRESS:	
		STREET 1:		450 NEWPORT CENTER DRIVE, STE 450
		CITY:			NEWPORT BEACH
		STATE:			CA
		ZIP:			92662

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			HEESCHEN PAUL C
		CENTRAL INDEX KEY:			0001038518

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21203
		FILM NUMBER:		07834362

	BUSINESS ADDRESS:	
		STREET 1:		450 NEWPORT CENTER DRIVE
		STREET 2:		SUITE 450
		CITY:			NEWPORT BEACH
		STATE:			CA
		ZIP:			92660
		BUSINESS PHONE:		7146441850

	MAIL ADDRESS:	
		STREET 1:		450 NEWPORT CENTER DRIVE
		STREET 2:		STE 450
		CITY:			NEWPORT BEACH
		STATE:			CA
		ZIP:			92660
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd157879.xml
<DESCRIPTION>STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-05-07</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000947661</issuerCik>
        <issuerName>DIEDRICH COFFEE INC</issuerName>
        <issuerTradingSymbol>DDRX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001038518</rptOwnerCik>
            <rptOwnerName>HEESCHEN PAUL C</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>450 NEWPORT CENTER DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 450</rptOwnerStreet2>
            <rptOwnerCity>NEWPORT BEACH</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92660</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001296809</rptOwnerCik>
            <rptOwnerName>Sequoia Enterprises, L.P.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>450 NEWPORT CENTER DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 450</rptOwnerStreet2>
            <rptOwnerCity>NEWPORT BEACH</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92660</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-05-07</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>955229</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2450543</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Note</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Mr. Heeschen beneficially owns an aggregate of 2,450,543 shares of Common Stock, which consists of the following: (i) 2,023,604 shares beneficially owned by Sequoia Enterprises L.P.; (ii) 355,290 shares beneficially owned by D.C.H., L.P.; and (iii) 63,978 shares beneficially owned by Redwood Enterprises VII, L.P. Mr. Heeschen is the sole general partner of each of these partnerships with voting and investment power as to all of such shares. Also included are the following: (i) 1,171 shares owned personally by Mr. Heeschen, (ii) 250 shares held by Paul C. Heeschen Revocable Living Trust and (iiI) 6,250 shares held by the Palm Trust, of which Mr. Heeschen is a trustee with shared voting and investment power as to all of such shares.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Paul C. Heeschen</signatureName>
        <signatureDate>2007-05-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Paul C. Heeschen, as General Partner, Sequoia Enterprises, L.P.</signatureName>
        <signatureDate>2007-05-09</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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