Big Changes Coming to Northwest Beer Distribution Business
Mt. Hood Beverage, Columbia Distributing Co. and Gold River Distributing are merging and as a result the three firms will be ceasing operations at about 25 distribution centers and laying off more than 2,625 workers across Oregon and Washington. All of the layoffs may not be permanent as the three firms integrate operations in "the next few years."
The merger includes their beer and non-alcoholic beverage distribution businesses in Oregon and Washington, but does not include their wine distribution businesses.
"Industry dynamics are changing at a really rapid pace. The Miller and Coors merger announcement last fall presented a chance for us to look at the opportunities a potential merger would create for all of our stakeholders," said Steve Lytle of Mt. Hood Beverage and co-owner of Gold River Distributing. "After talking with Columbia, we realized that all three companies share common vision and values. It was obvious that a merger would add value for our employees, suppliers, customers and the communities we service in a sustainable and long term way."
"This merger increases the ability for both companies to build a team that will effectively manage the significant increases in the current cost of going to market," said Gregg Christiansen of Columbia Distributing. "Fuel costs have risen sharply, increasing our need to analyze the total number of vehicles we put on our streets as well as the number of miles being driven. Creating a more efficient, combined business in the Pacific Northwest will help enable us to successfully tackle these challenges while still servicing our valued customers and consumers in a timely and more environmentally sustainable manner."
The new organization, which will be named CoHo Distributing, will have annual sales of more than 35 million cases of beer and non-alcoholic beverages and is planning to operate out of consolidated facilities in Seattle, Everett, Portland, Eugene, Medford and Bend.
The company's headquarters will be based in Portland. CoHo Distributing will remain principally owned by the combined existing ownership of the Agnew and Lytle families, the families of Ed Maletis and Ron Fowler, and the principals of Endeavour Capital.
The proposed merger will require the approval of each of the companies' suppliers, who have been notified of the planned merger. This process is expected to take several months with the goal of closing the transaction by early fall.
The permanent reductions will begin Sept. 15 at the following Mt. Hood locations:
* 3601 NW Yeon in Portland, 386 workers
3522 SE Ferry Slip Road in Newport, 13 workers
* 1838 N. Main St. in Warrenton, 8 workers
* 4011 Industrial Ave. in Springfield, 136 workers
* 200 Hawthorne Ave. SE, Suite D484, in Salem, 44 employees
* 1350 NE Cedar in Roseburg, 9 employees
* 1640 Maple St. in North Bend, 16 employees
* 20735 High Desert Lane in Bend, 79 employees
* 3625 Crates Way in The Dalles, 8 employees
* 401 N. Keys Road in Yakima, WA, 63 employees and
* 6420 W. John Day in Kennewick, WA, 47 employees.
The Mt. Hood Beverage operations in Yakima and Kennewick, WA, will be included in the merged company effective January 2009.
Layoffs will begin Sept. 15 at the following Columbia Distributing locations:
* 6840 N. Cutter St. in Portland, 481 employees
* 2600 Prairie Road in Eugene, 136 employees
* 200 Hawthorne Ave. SE, Suite F604, in Salem, 34 employees
* 1305 SE Armour Way, No. 1, in Bend, 36 employees
* 4621A Gruman Drive in Medford, 46 employees
* 840 S. Front St. in Coos Bay, 27 employees
* 92 Hamburg, Unit G, in Astoria, 27 employees
* 2501 E. Valley Road in Renton, WA, 773 employees
* 16910 59th Ave. NE, in Arlington, WA, 100 employees
* 1465 Slater Road in Ferndale, WA, 20 employees and
* 3301 SE Columbia Way, Bldg. 45, in Vancouver, WA, 40 employees.
And layoffs will begin Sept. 15 at the following Gold River locations:
* 501 Airport Road in Medford, 117 employees
* 6025 Wesgo Drive in Klamath Falls, 16 employees and
* 620 S. 9th St. in Lakeview, two employees.
The merger includes their beer and non-alcoholic beverage distribution businesses in Oregon and Washington, but does not include their wine distribution businesses.
"Industry dynamics are changing at a really rapid pace. The Miller and Coors merger announcement last fall presented a chance for us to look at the opportunities a potential merger would create for all of our stakeholders," said Steve Lytle of Mt. Hood Beverage and co-owner of Gold River Distributing. "After talking with Columbia, we realized that all three companies share common vision and values. It was obvious that a merger would add value for our employees, suppliers, customers and the communities we service in a sustainable and long term way."
"This merger increases the ability for both companies to build a team that will effectively manage the significant increases in the current cost of going to market," said Gregg Christiansen of Columbia Distributing. "Fuel costs have risen sharply, increasing our need to analyze the total number of vehicles we put on our streets as well as the number of miles being driven. Creating a more efficient, combined business in the Pacific Northwest will help enable us to successfully tackle these challenges while still servicing our valued customers and consumers in a timely and more environmentally sustainable manner."
The new organization, which will be named CoHo Distributing, will have annual sales of more than 35 million cases of beer and non-alcoholic beverages and is planning to operate out of consolidated facilities in Seattle, Everett, Portland, Eugene, Medford and Bend.
The company's headquarters will be based in Portland. CoHo Distributing will remain principally owned by the combined existing ownership of the Agnew and Lytle families, the families of Ed Maletis and Ron Fowler, and the principals of Endeavour Capital.
The proposed merger will require the approval of each of the companies' suppliers, who have been notified of the planned merger. This process is expected to take several months with the goal of closing the transaction by early fall.
The permanent reductions will begin Sept. 15 at the following Mt. Hood locations:
* 3601 NW Yeon in Portland, 386 workers
3522 SE Ferry Slip Road in Newport, 13 workers
* 1838 N. Main St. in Warrenton, 8 workers
* 4011 Industrial Ave. in Springfield, 136 workers
* 200 Hawthorne Ave. SE, Suite D484, in Salem, 44 employees
* 1350 NE Cedar in Roseburg, 9 employees
* 1640 Maple St. in North Bend, 16 employees
* 20735 High Desert Lane in Bend, 79 employees
* 3625 Crates Way in The Dalles, 8 employees
* 401 N. Keys Road in Yakima, WA, 63 employees and
* 6420 W. John Day in Kennewick, WA, 47 employees.
The Mt. Hood Beverage operations in Yakima and Kennewick, WA, will be included in the merged company effective January 2009.
Layoffs will begin Sept. 15 at the following Columbia Distributing locations:
* 6840 N. Cutter St. in Portland, 481 employees
* 2600 Prairie Road in Eugene, 136 employees
* 200 Hawthorne Ave. SE, Suite F604, in Salem, 34 employees
* 1305 SE Armour Way, No. 1, in Bend, 36 employees
* 4621A Gruman Drive in Medford, 46 employees
* 840 S. Front St. in Coos Bay, 27 employees
* 92 Hamburg, Unit G, in Astoria, 27 employees
* 2501 E. Valley Road in Renton, WA, 773 employees
* 16910 59th Ave. NE, in Arlington, WA, 100 employees
* 1465 Slater Road in Ferndale, WA, 20 employees and
* 3301 SE Columbia Way, Bldg. 45, in Vancouver, WA, 40 employees.
And layoffs will begin Sept. 15 at the following Gold River locations:
* 501 Airport Road in Medford, 117 employees
* 6025 Wesgo Drive in Klamath Falls, 16 employees and
* 620 S. 9th St. in Lakeview, two employees.
Labels: Columbia Distributing Co., Gold River Distributing, layoffs, Mt. Hood Beverage
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