By Fred Delkin

 We must take a fellow publication, Portland Tribune, to task for swallowing and printing the propaganda put forth by what is becoming a commercial monopoly in the Northwest beverage field.  Under the headline “Industry Toasts Wine Venture,” the Tribune presents the impression that beverage distribution giant Columbia Distributing’s recent dramatic expansion in brands will benefit all concerned.

Not so.  Especially for retail shops and restaurants about to be served by Young’s Columbia, new wine arm of Columbia (which is also huge in beer and soft drink brands) formed by a merger with Young’s Market Company of Orange, California (far and away the biggest wine distributor in the golden state).  Despite the Tribune’s headline that points to wine retailer benefits,  attributable quotes (all favorable) in the merger report  come from individuals in the brewing industry.  Riding the wave of Oregon’s craft beer-making explosion, Columbia handles the majority of microbrew labels in our state (with the exception of Widmer, Bridgeport and Rogue), in addition to giant Miller Brewing’s brands.  This modest little sales, delivery and warehousing service lays claim to being the nation’s largest microbrew distributor.

Freshness matters

Craft beer quality at point-of-sale is directly related to freshness, particularly with on-tap sales, where immediate delivery is paramount.  Not so with wine, which is not a perishable product.  The Tribune report vaguely states “wine retailers say they believe the (Columbia) move will improve their service.”  We doubt one could find a retailer willing to be directly quoted to that effect.  We have been involved at the producer, distributor and retail levels of the wine business.  Never have we heard praise for Columbia’s delivery efficiency, or their ability to provide a strong sales presence for any single small winery label, and this before the latest growth spurt occurred.

For decades, Columbia has carried far more wine labels than any competitor, including a long list of Oregon wineries.  The latter stable was largely acquired by the purchase of Henny Hinsdale, a pioneer in pushing Oregon’s fledgling wine labels.  Many of the latter rely upon their own in-house distribution and sales efforts, realizing that a mega-distributor cannot provide the personal representation necessary to place any but the best-known (or lowest priced) labels on a restaurant list or store shelf.  In 1995 Columbia bought Admiralty Beverage, a pioneer in purveying microbrews and largest local importer of Italian wines. 

Speaking of “best-known,” the Tribune’s rundown of brands to be carried by Young’s-Columbia states “the company also will carry rare brands from Chateau St. Jean, Cakebread Cellars, Rosemount Estates and Sterling Vineyards.” “Rare” indeed!  Each of these labels has been a market fixture for many years, and all but Cakebread are in the large volume category and don’t lack for outlets (Rosemount is a giant of the prolific Australian wine industry, stocking the biggest retail outlets in Oregon).

Brewery booster

A Tribune quote that particularly caught our attention was the statement by Jim Parker of the Oregon Brewers Guild that “…if the wine business helps Columbia make money, that’s all the more they can spend on things related to beer.”  Right, on, James!

There’s no doubt both the wine and beer businesses have been kind to Columbia to date.  Within the past three years, Columbia purchased its way to a predominant presence in Washington as well as Oregon, buying Seattle-based wine distribution giant G.A. Raden and the Evergreen state’s major beer mover, Sid Eland of Seattle.  In 1997, Columbia bought Koprivicka Distributing in Spokane and moved into Idaho in 2000, purchasing Panhandle Distributors of Couer ‘d Alene.  Today, Columbia claims product provision for over 95% of Oregon’s population and 89% coverage in Washington. 

Alcohol is not the only fuel for Columbia’s market movement.  The firm has been handling natural beverages, notably Snapple, for several years, and just announced acquisition of the soft drink brands long pushed by Portland Bottling, which went belly-up recently.  Brands and territories involved in this deal include 7Up and Dr. Pepper in the Portland area, A&W root beer and Sunkist sodas in Portland and Eugene, RC Cola, Squirt, Crush, Hires and Welch’s in Portland and Seattle, plus Canada Dry and Hawaiian Punch in Seattle.  And your product doesn’t have to be wet to achieve Columbia attention.  The mushrooming marketeer also handles cigars.

Columbia’s rapidly growing mastery of all things liquidly refreshing is masterminded by President Ed Maletis.  He carries on in the tradition of a Greek immigrant family that began warehousing and delivering beer in Oregon in 1935.  In 1993 the band of Maletis brothers agreed to split, with Ed taking Columbia and his siblings concentrating on beer with Maletis Beverage, the only way a retail outlet in the greater Portland metro area and southwest Washington can stock the world’s biggest beer brand, Budweiser.

In addition to operating from facilities in the Northwest’s major cities, Columbia has branches in Bend, Salem, Eugene, Medford and Vancouver, WA.   If more is better, then less in Northwest beverage distribution ranks is on the rise.  All hail Columbia, but don’t doubt that this organization is enhancing the common, negative characterization of distributors in most business categories as “order takers and deliverers,” not sales and marketing engines, and responsive to those who spend big bucks to tell the world about their products. 

It wasn’t always thus in the small business beginnings of our local wine and craft beer industries, who welcomed small distributors willing to wave a flag for their newborn labels.  Columbia eclipses attention for the little guy in a quest to create less with more. 

(C) 2002 Oregon Magazine