Diedrich Coffee, a leading fine coffee roaster and wholesaler, reported impressive revenue and profit figures for the first quarter 2010 (ended September 16, 2009). Total quarterly revenue increased 52% over the same quarter last year, going from $10.4 million to $15.8 million. The jump was led by a 66%, $5.8 million, increase in the sale of Keurig K-Cups, the popular one-serving coffee pods that users can pop in a coffee maker and discard. Diedrich Coffee is one of only four roasters under license to produce K-Cups for Keurig Incorporated’s top-selling single-cup brewing system.

First quarter gross margins were also up, increasing from 21% in the same quarter last year to 26% this year. Price increases helped, but other factors include a higher machine utilization, lower temporary help and overtime costs, reduction of scrap and waste due to better inventory controls, lower outbound freight costs, plus the ability to leverage fixed manufacturing