More than 1,000 workers in Northern California are losing their jobs after a beer distributor with locations in the Bay Area and beyond was bought by a competitor.
Reyes Beverage Group, one of the biggest food and drink distributors in the nation, is buying DBI Beverage for an undisclosed amount that some reports have pegged at about $400 million. The acquisition, announced in July, will shut down DBI Beverage locations in nine counties in California, including three in the Bay Area: Santa Clara, San Mateo and Solano.
In San Jose, 174 workers will lose their jobs, while 190 positions will be cut in South San Francisco and 66 will be affected in Fairfield, according to filings with the state’s Employment Development Department. The other closures, affecting 649 workers, are in Ceres, Chico, Stockton, Truckee, Ukiah and Sacramento. The job cuts, which total 1,079, are effective Sept. 13.
Tennessee-based DBI Beverage distributed a few dozen beer brands in Northern California, including Asahi, Blue Moon, Coors, Foster’s, Guinness, Samuel Adams and Tecate, plus other drinks such as Arrowhead Water. Reyes Beverage Group’s Harbor Distributing also gains the popular Corona and Modelo brands as a result of its purchase of DBI Beverage.
The deal, which expands Harbor’s footprint throughout California, will add about 28 million cases to Harbor’s business, according to a press release.
Reyes Beverage Group and DBI Beverage have not returned requests for comment.