<PAGE>

             U.S. SECURITIES AND EXCHANGE COMMISSION

                      Washington, D.C. 20549

                           FORM 10-QSB


       /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                THE SECURITIES EXCHANGE ACT OF 1934


        For the quarterly period ended September 30, 1999

                               OR

       / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from ____________ to ____________

                Commission File No. 33-960-70-LA


                THANKSGIVING COFFEE COMPANY, INC.

               (Exact name of small business issuer
                   as specified in its charter)


           California                           94-2823626
(State or other jurisdiction of                (IRS Employer
 incorporation or organization)            Identification Number)

      19100 South Harbor Drive
      Fort Bragg, California                         95437
(Address of principal executive Officers)          (Zip Code)


Issuer's telephone number, including area code:    (707) 964-0118

       (Former name, former address and former fiscal year,
                  if changed since last report.)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

               Yes \X\                       No \ \

As of November 10, 1999, there were issued and outstanding
1,236,744 shares issued and share of common stock of the issuer.
<PAGE>
<PAGE>
               THANKSGIVING COFFEE COMPANY, INC.


                           INDEX


PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements                               Page No.
          Balance Sheet at September 30, 1999 and
          December 31, 1998                                     [ ]


          Statements of Income for the Three Months Ended
          September 30, 1999 and September 30, 1998 and for
          the Nine Months Ended September 30, 1999 and
          September 30, 1998                                    [ ]

          Statements of Cash Flows for the Nine Months
          Ended September 30, 1999 and September 30, 1998       [ ]


          Notes to Financial Statements                         [ ]


Item 2.   Management's Discussion and Analysis of Financial
	  Condition and Results of Operations                   [ ]

PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                     [ ]


Item 2.   Changes in Securities                                 [ ]


Item 3.   Defaults Upon Senior Securities                       [ ]


Item 4.   Submission of Matters to a vote of Security-
          Holders                                               [ ]


Item 5.   Other Information                                     [ ]


Item 6.   Exhibits and Reports on Form 8-K                      [ ]

<PAGE>
<PAGE>
               THANKSGIVING COFFEE COMPANY, INC.


                  Consolidated Balance Sheet


                             Sept 30, 1999  Dec 31, 1998
                                Unaudited     Audited
ASSETS

CURRENT ASSETS
    Cash                           45,219      89,725
    Accounts receivable           390,003     412,634
    Note Receivable - Griswold     10,000      10,000
    Employee receivable             6,819       4,073
    Inventory                     397,816     473,718
    Other receivables and         104,295      79,956
    Prepaids                    _________   _________

      Total Current Assets        954,151   1,070,106


                             Sept 30, 1999  Dec 31, 1998
                                Unaudited     Audited

PROPERTY AND EQUIPMENT
    Property, fixtures and      2,220,560   2,097,013
    Equipment
Accumulated depreciation      (1,354,238) (1,210,609)
                              ___________ ___________

      Total Property and          866,322     886,404
      Equipment

OTHER ASSETS
    Deposits and other assets      45,100      41,291
    Note Receivable - Griswold     22,028      22,028
    Intangibles, net of           255,196     264,480
    amortization                  _______     _______

      Total Other Assets          322,324     327,799


      Total Assets              2,142,797   2,284,309
                                =========   =========

See accompanying notes to financial statements

<PAGE>
<PAGE>
              THANKSGIVING COFFEE COMPANY, INC.


                 Consolidated Balance Sheet

LIABILITIES AND STOCKHOLDERS' EQUITY

                             Sept 30, 1999  Dec 31, 1998
                               (Unaudited)     Audited
CURRENT LIABILITIES
   Accounts payable              341,416      454,247
   Notes payable-banks            75,150       75,150
   Loan payable-shareholder       19,752       35,876
   Accrued liabilities            37,393       37,336
   Current portion of long        97,280       97,280
   term debt                     _______      _______


      Total Current              570,991      699,889
      Liabilities


LONG TERM  LIABILITIES
   Note payable-long term        775,060      862,993
   Notes Payable -                17,000       22,000
   Shareholder
                                 _______      _______


     Total Long Term             792,060      884,993
     Liabilities


                              Sept 30, 1999  Dec 31, 1998
                               (Unaudited)     Audited

STOCKHOLDERS' EQUITY
   Common stock - no par           861,618      872,816
    1,960,000 shares authorized;
    1,236,744 shares issued and
    outstanding at September 30,
    1999
    Additional paid-in capital     24,600       24,600
    Investments
    Retained earnings            (106,472)    (197,989)
                                _________    __________

      Total Stockholders'         779,746      699,427
      Equity                    _________    __________


 Total Liabilities and          2,142,797    2,284,309
 Stockholders' Equity           =========    ==========

<PAGE>
<PAGE>
                THANKSGIVING COFFEE COMPANY, INC.

                Statements of Income (Unaudited)

                          Three                 Nine
                         Months               Months
                          Ended                Ended
                        Sept 30              Sept 30
                           1999      1998       1999      1998
                      _________ _________  _________ _________

Net Sales             1,451,989 1,377,239  4,054,040 4,170,343
Cost of Sales           792,622   779,638  2,240,025 2,499,237
   Gross Profit         659,367   597,601  1,814,015 1,671,106


Operating Expenses
   Selling, General &   519,518   475,641  1,487,199 1,723,161
   Administrative
   Depreciation &        49,604    42,676    139,942   126,082
   Amortization         _______   _______  _________ _________


     Total Operating    569,122   518,317  1,627,141 1,849,243
     Expenses


     Operating Income    90,246    79,284    186,875  (178,137)

Other (Income)Expense
   Interest (Income)       (979)  (   281)    (2,306)   (1,800)
   Interest Expense      29,807    29,310     90,452    96,553
   Miscellaneous          2,054     1,298      6,346     9,375
   Expense(Income)       ______    ______    _______   _______

     Total Other         30,882    30,327     94,492   104,128
     (Income) Expense


                          Three                 Nine
                         Months               Months
                          Ended                Ended
                        Sept 30              Sept 30
                           1999      1998       1999      1998
                      _________ _________  _________ _________

  Income (Loss)          59,363    48,957     92,382  (282,265)
    Before Taxes

Tax Expense (Credit)        866         0        866   (65,897)


Net Income (Loss)        58,497    48,957     91,516  (216,368)
<PAGE>
<PAGE>
                THANKSGIVING COFFEE COMPANY, INC.


               Statements Of Cash Flow (Unaudited)

                                            9 Months    9 Months
                                               Ended       Ended
                                             Sept 30     Sept 30
                                                1999        1998
                                            --------    --------
CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)                             91,516    (216,368)
Non cash items included in net income (loss):
   Depreciation and amortization              156,162    139,955
   Receivables                                 19,885     30,738
   Inventory                                   75,902     90,456
   Commodities Options Account                      0     26,389
   Prepaid expenses/Other Receivables         (24,339)   133,817
   Deposits/Other Assets                       (3,809)   (38,200)


Increase (Decrease) in:
Accounts payable                             (112,831)      (361)
Accrued liabilities                                57     38,188
Deferred Income Taxes                               0    (66,535)


Net cash provided (used) by Operating         202,544    138,079
Activities


CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment       (123,547)   (50,034)
Purchase of intangible assets                  (3,250)         0
Proceeds from Sale of Equipment                     0      1,000
Repurchase of Common Stock                    (11,198)         0
Unrealized (Loss) Gain on Investments               0     (3,656)
Adjustment to Retained Earnings


Net cash provided (used) by Investing        (137,994)   (52,690)
Activities
<PAGE>
<PAGE>
                                            9 Months    9 Months
                                               Ended       Ended
                                             Sept 30     Sept 30
                                                1999        1998
                                            --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (Repayment) of notes payable       (109,057)   (120,192)
(Increase) Decrease in notes receivable            0      46,973


Net cash provided (used) by Financing       (109,057)    (73,219)
Activities

Net Increase (Decrease) in Cash              (44,507)     12,170
Cash balance, as of January 1, 1999 & 1998    89,725      46,872
Cash balance, as of Sept 30, 1999 & 1998      45,219      59,041
<PAGE>
<PAGE>
                 THANKSGIVING COFFEE COMPANY, INC.


               Notes to Financial Statements (Unaudited)

Note 1 - Basis of Presentation

The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles and reflect all adjustments necessary for a fair
presentation of the information reported (which consists only of
normal recurring adjustments).  Because the Company's sales have
fluctuated significantly from quarter to quarter (See Seasonality
and Other Factors Affecting Performance section) due to the
holiday season and a variety of other factors, the results of
operations for the nine months ended September 30, 1999 are not
necessarily indicative of the results to be expected for the full
year.  The consolidated financial statements should be read in
conjunction with the financial statements, including notes
thereto, for the fiscal years ended December 31, 1998 and 1997,
which are included in the Company's Form 10-K for the year ended
December 31, 1998 filed on March 31, 1999.

Note 2 - Borrowings

At September 30, 1999 there were total borrowings of $984,242.
The Company had no lines of credit open at this point in time.

Note 3 - Impact of the Year 2000

The Year 2000 Issue is the result of computer programs being
written using two digits rather than four to define the
applicable year.  Any computer programs that have time-sensitive
software may recognize a date using "00"as the year 1900 rather
than the year 2000.  This could result in a system failure or
miscalculations causing disruptions of operations, including,
among other things, a temporary inability to process transactions
or engage in similar normal business activities. (See Impact of
the Year 2000 enclosed.)

The dates and cost estimates on which the Company believes it
will complete the Year 2,000 modifications are based on
management's best estimates, which are derived utilizing numerous
assumptions of future events, including the continued
availability of certain resources and other factors.  However,
there can be no guarantee that these estimates will be achieved
and actual results could differ materially from those
anticipated.  Specific factors that might cause such material
differences include, but are not limited to, the availability and
cost of personnel trained in this area, the ability to locate and
correct all relevant computer codes, and similar uncertainties.

Note 4 - Commitments and Contingent Liabilities

On May 18, 1999, Jeffrey E. Oberfelder initiated an action
against the Company in the Superior Court of Mendocino County,
<PAGE>
<PAGE>
California (Matter No. 81151).  He claims that the Company
wrongfully terminated him from his position as a commissioned
salesman.  Oberfelder seeks an accounting, payment of accrued
commissions, and payment of commissions into the indefinite
future.  The Company believes the claims are without merit and
intends to vigorously defend against this matter.  The ultimate
outcome of this matter cannot be determined at this time, and a
substantial judgment against the Company could have a material
adverse impact on its financial condition and results of
operations.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

This Form 10-QSB contains certain forward looking statements,
which are subject to certain risks and uncertainties including
but not limited to fluctuations in the availability and costs of
green coffee beans, availability and sufficiency of trade credit
and other financing sources, competition in the Company's
businesses, inability to secure adequate capital to fund its
operations and working capital requirements, inability to
successfully implement its business plan, inability to
successfully extend the credit agreement with Wells Fargo and
other risks identified in the Company's Form 10-K for the year
ended December 31, 1998.

On October 10, 1996, the Company completed its public offering of
common stock.  235,744 shares were sold for an aggregate of
$1,178,720.  The Company currently has 1,236,744 shares issued
and outstanding.

The Company continues to sublease its retail coffee shop in Fort
Bragg, California (the "Cafe") to a third party which sells,
among other things, the Company's coffee products.  The sublease
extends through January 2001.

RESULTS OF OPERATIONS

Three Months Ended September 30, 1999 Compared With Three Months
Ended September 30, 1998

Consolidated  net sales for the three months ended September 30,
1999 were $1,451,989, an increase of 5.4% from net sales of
$1,377,239 for the same period in fiscal 1998.  Such increase was
a result of new sales programs such as End the Embargo on Cuba,
fair traded coffees and new items added to our routes to build
volume in existing customers.  Sales for the quarter for the
bakery     division were flat with last year.   Net income for
the three months ended September 30, 1999, was $59,363 compared
to net income of $48,957 for the three months ended September 30,
1998 or up 21%.

Gross margin (gross profit as a percentage of net sales)
increased by two percentage points from 43.3% for the three
months ended September 30, 1998 to 45.4% for the period ending
<PAGE>
<PAGE>
September 30, 1999.   Coffee Company margins (exclusive of the
Bakery) increased to 48% for the three months ended September 30,
1999 from 40% for the same period in 1998.  Lower cost of green
beans coupled with improved efficiency in manufacturing  and
roasting resulted in higher margins.

Selling, general and administrative expenses increased nearly
$44,000 for the three months ended September 30, 1998 from
$475,641 to $519,518 at September 30, 1999.  This increase was a
result of additional promotional spending, both on the Internet
and traditional sales venues of $16,000, higher legal, audit and
professional fees of $17,000 and $10,000 for additional personnel
to develop materials and programs for the End the Embargo coffee,
fair trade coffee, relief supplies to Nicaragua for the survivors
of Hurricane Mitch and to perform an environmental audit of the
Company.

Depreciation and amortization expenses increased 16% from $42,676
for the three months ended September 30, 1998 to $49,604 for the
same period in 1999.  Increases in fixed assets resulted in
higher depreciation.

Interest expense was comparable at $29,000 for both the three
month period ended September 30, 1999 and September 30, 1998.

Even though the Company realized a profit for the three months
ended September 30, 1999 of nearly $59,000, it incurred only a
minor tax expense for restatement of 1997 state tax.  Management
deemed the recording of any tax liability as unnecessary since
the Company has sufficient tax loss carry forwards to offset
taxable income in the foreseeable future.

As a result of the foregoing factors, the Company incurred a net
profit of $58,497 for the three months ended September 30, 1999
compared with a profit of $48,957 for the three months ended
September 30, 1998.

Nine Months Ended September 30, 1999 Compared With Nine Months
Ended September 30, 1998

Consolidated net sales for the nine months ended September 30,
1999 were $4,054,040, a decrease of 3% over net sales of
$4,170,343 for the same period in 1998.  Of this decline, $16,000
was due to lost sales because of the close of the cafe in
February, 1998, $40,000 due to a drop in volume of the route
distribution as the Company rationalized some accounts and
$60,000 due to decreased  national sales as a result of slower
business in the Company's Far East accounts, offset by
improvements in sales noted in the third quarter comparisons
above.

Gross margin (gross profit as a percentage of net sales)
increased from 40% for the nine months ended September 30, 1998
to nearly 45% for the same period in 1999.   Higher selling
prices coupled with lower green bean costs and improved
efficiency in manufacturing and roasting improved margins.
<PAGE>
<PAGE>
Selling, general and administrative expenses decreased 14% from
$1,723,161 in the nine months ended September 30, 1998 to
$1,487,199 in the nine months ended September 30, 1999, or nearly
$236,000.  This reduction is a result of decreasing mail order
costs of $40,000, reduced personnel expense of $80,000, and lower
administrative expenses of nearly $90,000.  However, as noted
above, operating expenses for the third quarter of 1999 actually
increased  because of higher spending for promotions and legal
and audit fees.

Depreciation and amortization expenses increased by nearly
$14,000 from $126,082 for the nine  months ended September 30,
1998  to $139,942  for the same period in 1999.  Higher
depreciation was a result of newly acquired fixed  assets.

Interest expense was down approximately $6,000 from $96,553 for
the nine months September 30, 1998 to $90,452 for the same period
in 1999.  Lower borrowings as a result of payoff of some debt
during the year resulted in lower interest expense.
However, because of the mix of prime and fixed debt arrangements,
an  increasing prime could increase the interest expense  of  the
Company.

As a result of the foregoing factors, the Company realized a net
profit of $91,516  for the nine months ended September 30, 1999
compared to a loss of $216,368 for the nine months ended
September 30, 1998.

Even though the Company realized a gain for the nine months ended
September 30, 1999, it incurred only a small tax liability
(established for re-filing of 1997 state tax).  Management deemed
the recording of any tax liability as unnecessary since the
Company has sufficient tax loss carry forwards to offset taxable
income in the foreseeable future.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 1999 the Company had positive capital of
$383,160. Net cash provided by operating activities was $202,544
for the nine months ended September 30, 1999 compared to $138,079
for the same period in 1998.  Of the cash generated in 1999,
approximately $92,000 was a result of net income.  Depreciation
and amortization (non cash expenses of the Company) totaling
$156,000 was offset by reductions in accounts receivable of
$20,000 which was a result of better collections and a $75,000
drop in inventory as a result of a lower bean costs.   In the
corresponding nine month period in fiscal 1998, because the
Company sustained a loss, its cash was generated by depreciation
and balance sheet changes offset by the loss.

Net cash used in investing activities for the nine months ended
September 30, 1999 was approximately $138,000 compared to $53,000
in the same period in 1998.  The purchase of more capital assets
in 1999 compared to 1998 caused this number to be higher for
1999.  Additions included the web site and internet store
replacement $28,000, vehicles $50,000, fixtures $10,000, brewers
<PAGE>
<PAGE>
and grinders $18,000 and computer and telephone equipment
$10,000.  It also includes the repurchase of $11,000 of common
stock from shareholders.  These purchases were in line with
management's budget and business plan.  During the same period in
fiscal 1998, only $50,000 of fixed assets were purchased.

Included in net cash used by financing activities during the nine
months ended September 30, 1999 was $109,057 net repayment of
notes payables primarily for equipment capital leases and the
Wells Fargo bank loan. In the same period for fiscal 1998 the
Company repaid $120,192 of notes payable in addition to a net
decrease of notes receivable for $46,973.

The Company maintained a revolving line of credit of up to
$650,000 in fiscal 1998.  The credit agreement was renewed in the
fourth quarter of fiscal 1998; however, in January 1999 this
agreement was renegotiated and replaced with a two-year note
payable in the principal amount of $601,636 with a balloon
payment due after the end of two years of $441,199.68.  In the
event that the Company is unable to renegotiate this balloon
payment before it becomes due, the Company's business could be
adversely effected.

At September 30, 1999 the Company had total borrowings of
$984,242, including $561,525 outstanding under the new note
payable dated January 6, 1999.  Borrowings are secured by the
Company's accounts receivable, inventory, equipment, fixtures and
improvements.  The loan terms contain certain limitations and
covenant restrictions, including limits on the occurrence of
additional indebtedness.  At June 30,1999, the Company had no
open lines of credit.

The Company is dependent on successfully executing its business
plan to achieve profitable operations, obtaining additional
sources of borrowings (including normal trade credit), and
securing favorable financing arrangements (including lease
financing) to finance its immediate working capital needs.  There
can be no assurance that the Company will be successful in this
regard.  If the Company is not able to meet its credit
obligations the Company business could be materially and
adversely affected.

The Company anticipates that its existing capital resources and
cash generated from operations will be sufficient to meet its
cash requirement for the next 12 months at its current level of
operations.

IMPACT OF THE YEAR 2000

Currently, many hardware and software systems represent year data
with two rather than four digits (e.g. "01" instead of "2001").
This may cause hardware and software systems to produce erroneous
results and/or to malfunction when processing dates after
December 31, 1999.  As a result, much of the hardware and
software of many companies may need to be updated or replaced in
order to correctly process dates after December 31, 1999.
<PAGE>
<PAGE>
The Company has reviewed and upgraded its information technology
during the past seventeen months.  Since November 1997, it has
updated its main accounting software at the cost of $6,000 and
its LAN software for $4,200 in November of 1998.  In January of
1999 the Company reviewed its hardware to assure compliance not
only for the year 2000 but also for leap year compatibility. This
review, which costs $300, did not require any change in
equipment.  The only information technology that the Company has
yet to adapt is its mail order software.  This change is
scheduled to be complete by the end of December 1999 at a cost of
approximately $3,500.  However, there can be no assurance that
the Company will be able to complete such change on that
schedule.  The Company has been informed by its vendors that
other information technology such as telephone and alarm systems
are either compliant or not date sensitive.   Wells Fargo, the
major bank of the Company, has publicly stated its systems will
be year 2000 compliant.   The Company's payroll system is also
through Wells Fargo.  Currently, this part of the project is 70%
complete.

The Company is in the process of reviewing its non-information
technology such as roasters, fillers and sealers with embedded
chips.   The Company has received verbal acknowledgment from
manufacturers for the above that these roasters, fillers and
sealers are compliant or not date sensitive.  This project is 50%
complete

The Company has begun to poll its suppliers and customers as to
their ability to cope with the year 2000 computer and other
related issues.  The Company anticipates having this
vendor/customer program completed by October 1999 and will
prepare a contingency plan of its largest vendors and customers
who cannot be year 2000 compliant.  There can be no assurances;
however, that the Company will be able to complete such program
on that schedule or that any contingency plan will be successful.
This project is 50% complete.

The Company generates alternative power through diesel generators
to maintain plant operation schedules in the event of power
failures.  However, accounting system applications would not
operate and would have to be recorded manually because of the
unfavorable effect of generator power on computers.  The ability
of the Company to run on these generators is directly related to
its ability to obtain diesel fuel.  Currently there is no problem
in procuring diesel fuel.  The Company has received verbal
assurances from the local  telephone company that service would
not be affected.

The Company expects that the "most reasonably likely worst" case
for year 2000 compliance scenarios to include failure of the
accounting systems and disruptions in the operations of third
parties due to their failure to attain year 2000 compliance. Any
such failures could impact the Company by causing delays in: (i)
the delivery of coffee and other products to the Company, (ii)
the obtaining of customer orders and the delivery of Company
products and (iii) the receipt of payments from Company
<PAGE>
<PAGE>
customers.  The severity of these possible problems would depend
on the magnitude of the problem and how quickly it could be
corrected or an alternative implemented, which is unknown at the
time.

The total project completion date is December 31, 1999, which is
prior to any anticipated impact on its operating systems.  The
Company believes that with modifications to existing software and
conversions to new software, the year 2000 issue will not pose
significant operation problems for its computer systems.

However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those
anticipated.  Specific factors that might cause such material
differences include, but are not limited to, the availability and
cost of personnel trained in this area, the ability to locate and
correct all relevant computer codes, and similar uncertainties.

SEASONALITY AND OTHER FACTORS AFFECTING PERFORMANCE

The Company business is seasonal in nature.  The seasonal
availability of green bean coffee in the first two quarters of
the year and increased sales in the last quarter historically
creates a high use of cash and a build up in inventories and
increase in the first two quarters with a corresponding decrease
in inventory and increase in cash in the last quarter.  Because
of the seasonality of the Company business, results for any
quarter are not necessarily indicative of the results that may be
achieved for the full fiscal year.  Furthermore, past seasonal
patterns are not necessarily indicative of future results.  The
future Company results of operations and earnings could be
significantly affected by other factors, such as changes in
general economic conditions, changes in business conditions in
the coffee industry, fluctuations in consumer demand for coffee
products and in the availability and costs of green coffee beans,
increased competition, variances from budgeted sales mix and
growth rate, consumer acceptance of new products, inability to
secure adequate capital to fund its operating losses and working
capital requirements, inability to hire, train and retain
qualified personnel, concentration of production and sales in
Northern California, the loss of one or more major customers,
inability to produce coffee and tea, weather and other natural
disasters.  There can be no assurance that sales will increase in
future quarters.

INDEMNIFICATION MATTERS

The Company Bylaws provide that the Company may indemnify its
directors, officers, employees and other agents to the fullest
extent permitted by California law.  The Company believes that
indemnification under its Bylaws also permits the Company to
secure insurance on behalf of any officer, director, employee or
other agent for any liability arising out of his or her actions
in such capacity, regardless of whether California law would
permit indemnification.  The Company maintains such liability
insurance for its directors and certain officers and employees.
<PAGE>
<PAGE>
At present, there is no pending litigation or proceeding
involving any director, officer, employee or agent of the Company
where indemnification would be required or permitted.  The
Company is not aware of any pending or threatened litigation or
proceeding that might result in a claim for such indemnification.

SUMMARY OF RECENT DEVELOPMENTS

In the first quarter of 1999 the Board of Directors has
authorized the minimum repurchase of Company common stock up to
an amount not to exceed 5% of the Company net income calculated
quarterly on a year to date basis.  Any repurchases are subject
to certain legal requirements and the covenants associated with
Company debt.

The Company continues to pursue the sale of the Bakery and has
listed the business with a real estate agent.


                  PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

See the discussion in "Note 4 - Commitments and Contingent
Liabilities" in the Notes to Financial Statements in Part I
hereof, which is incorporated herein by reference.


ITEM 2. CHANGES IN SECURITIES

- Not Applicable -


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

- Not Applicable -


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

At the Company's meeting held in Fort Bragg at 10:00 a.m. on
October 15, 1999, the Company submitted for a vote of security
holders the reelection of all four members of the board of
directors and ratification of Sallman, Yang and Alameda as
independent public accountants.  Below is a summary of the
results.

Proposal No. 1 Election of Four Directors

Name              Shares for    Against/Withheld    Abstain
Paul Katzeff        983510            200              0
Joan Katzeff        983510            200              0
Larry Leigon        983510            200              0
Roy Doughty         983510            200              0

<PAGE>
<PAGE>
Proposal No. 2 Ratification of Sallman, Yang and Alameda, An
Accountancy Corporation, As Independent Public Accountants for
the Company.

                  Shares for    Against/Withheld    Abstain
                    983510            200              0


ITEM 5. OTHER INFORMATION

- Not Applicable -


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     a.  Exhibits

         27.1  Financial Data Schedule (electronic only).

     b.  Form 8-K

         No reports on Form 8-K were filed during the period
         from January 1, 1999 through September 30, 1999.


                         SIGNATURES


In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

THANKSGIVING COFFEE COMPANY, INC.


Name                 Title                      Date


/s/ Paul Katzeff     Chief Executive Officer    November 8, 1999
--------------------
    Paul Katzeff


/s/ Joan Katzeff     President                  November 8, 1999
--------------------
    Joan Katzeff


<PAGE>
<PAGE>
                       EXHIBIT INDEX


27.1            Financial Data Schedule (electronic only).

<PAGE>
<PAGE>