8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 22, 2009

DIEDRICH COFFEE, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-21203	33-0086628
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

28 Executive Park, Suite 200

Irvine, California 92614

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (949) 260-1600

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On October 22, 2009, Diedrich Coffee, Inc. (the “Company”) announced the initiation of a transition plan with respect to the position of chief executive officer of the Company, pursuant to which the employment of J. Russell Phillips, as President and Chief Executive Officer of the Company, will terminate. The Company issued a press release relating to the CEO transition plan on October 22, 2009. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is furnished with this Current Report on Form 8-K:

Exhibit No.	Description
99.1	Press release dated October 22, 2009

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 28, 2009	DIEDRICH COFFEE, INC.
	By:	/s/ Sean M. McCarthy
		Sean M. McCarthy Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated October 22, 2009

EX-99.1

Exhibit 99.1

Diedrich Coffee Plans CEO Transition

IRVINE, California, October 22, 2009—Diedrich Coffee, Inc. (NASDAQ: DDRX), a leading roaster and wholesaler of the world’s finest coffees, has initiated a transition plan with respect to the company’s chief executive officer.

“The board of directors is very pleased with what the company, under the direction of Russ Phillips, has achieved during the past eighteen months,” said Paul C. Heeschen, the company’s chairman of the board. “As previously announced, we completed the disposition of our less-profitable retail and franchise operations to focus on roasting, packaging and wholesale sales. The board had asked one of its own members, Mr. Phillips, to assume the CEO position in order to utilize his experience in the manufacturing sector to address many of the inefficiencies and other issues the company faced in its operations. Now that we have just reported our second consecutive profitable quarter and our operating margins are showing strong improvement, Russ feels, and the board concurs, that he has successfully completed the mission he was brought in to handle and that the time is right to bring in a new CEO with a different skill set that emphasizes brand management, multi-channel sales, new products and high velocity growth in the at-home market to lead the company as he returns to his family and other activities.” Mr. Phillips will continue as a member of the board of directors of the company.

Under the transition plan, Mr. Phillips will remain as the CEO of the company to assist in the recruitment of his successor and to effect an orderly transition. “I have truly enjoyed my time as CEO of Diedrich Coffee and am proud of the significant improvements in the company’s growth and operating performance, especially those in the manufacturing area,” stated Mr. Phillips. “We now have a great team that knows how to perform. At the same time, I look forward to again having the time for my family and returning to my writing, speaking and other pursuits I so greatly enjoy.”

The company has retained Korn/Ferry International to lead the search for a new CEO, which is underway.

About Diedrich Coffee

With headquarters in Irvine, California, Diedrich Coffee specializes in sourcing, roasting and selling the world’s highest quality coffees. The company markets its three leading brands of specialty coffees, Diedrich Coffee, Coffee People and Gloria Jean’s Coffees, through office coffee service distributors, restaurants and specialty retailers, and via the company’s web stores. Diedrich Coffee is one of only four roasters under license to produce K-Cups for Keurig Incorporated’s top-selling single-cup brewing system. For more information about Diedrich Coffee, call 800-354-5282 or go to: www.diedrich.com, www.coffeepeople.com or www.coffeeteastore.com.

Forward-Looking Statements

Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and fall under the safe harbor. Actual results and financial position could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including, but not limited to, the financial and operating performance of Diedrich Coffee’s wholesale operations, the company’s ability to maintain profitability over time, the successful execution of the company’s growth strategies, the impact of competition, the availability of working capital, and other risks and uncertainties described in detail under “Risk Factors and Trends Affecting Diedrich Coffee and its Business” in the company’s annual report on Form 10-K for the fiscal year ended June 24, 2009 and other reports filed with the Securities and Exchange Commission. Except where required by law, the company does not undertake an obligation to revise or update any forward-looking statements, whether as a result of new information, future events or changed circumstances.

Diedrich Coffee Investor Relations:

Scott Liolios or Cody Slach

Liolios Group, Inc.

Tel 949-574-3860

info@liolios.com