SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* PENINSULA CAPITAL MANAGEMENT INC (Last) (First) (Middle) ONE SANSOME STREET, SUITE 3134 (Street) SAN FRANCISCO CA 94104 (City) (State) (Zip)	2. Date of Event Requiring Statement (Month/Day/Year) 12/06/2004	3. Issuer Name and Ticker or Trading Symbol DIEDRICH COFFEE INC [ DDRX ]
		4. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director X 10% Owner Officer (give title below) Other (specify below)	5. If Amendment, Date of Original Filed (Month/Day/Year)
			6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person X Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock, par value $0.01	526,885	I	Footnote(1)

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Warrants	(2)	05/08/2011	Common Stock	41,666	$4.8	I	Footnotes(1)(3)

1. Name and Address of Reporting Person* PENINSULA CAPITAL MANAGEMENT INC (Last) (First) (Middle) ONE SANSOME STREET, SUITE 3134 (Street) SAN FRANCISCO CA 94104 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* BEDFORD SCOTT (Last) (First) (Middle) ONE SANSOME STREET, SUITE 3134 (Street) SAN FRANCISCO CA 94104 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

Explanation of Responses:

1. The securities reported herein are held in the account of Peninsula Fund, L.P. ("Peninsula"), a private investment fund. Peninsula Capital Management, Inc. ("PCM") may be deemed to be a beneficial owner of such securities by virtue of its role as the general partner of Peninsula. Scott Bedford is the managing member of PCM. Mr. Bedford may be deemed to beneficially own the securities held by Peninsula by virtue of his status as the managing member of PCM.

2. The warrants are exercisable immediately.

3. The warrants were issued to the Reporting Persons in May 2001 as part of a private placement of common stock and were not provided at a separate price.

Remarks:

(+) Each of the Reporting Persons (each, a "Reporting Person" and collectively, the "Reporting Persons") disclaims beneficial ownership of the reported securities except to the extent of its or his pecuniary interest therein. The Reporting Persons affirmatively disclaim being a "group" for purposes of Section 16 of the Securities Exchange Act of 1934, as amended.

	Peninsula Capital Management, Inc. (+), By: /s/ Scott Bedford, Managing Member	12/16/2004
	By: /s/ Scott Bedford (+)	12/16/2004
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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