Two Washington state craft- and import-centric distributors are shutting down in the wake of their parent company’s sale to PepsiCo.
“Corwin Beverage Company, which started out as Pepsi Cola of Vancouver in 1941, has decided to exit the highly competitive beverage distribution business,” the company announced in a press release. “The non-alcohol division of Corwin Beverage Company will be acquired by its longtime partner PepsiCo.
“Concurrently, the company is actively exploring transition options regarding its craft beverage business through assignments to other distributors in accordance with its beverage distribution agreements,” Corwin continued.
Notifications to suppliers, staff and other partners began this week, and the process is expected to conclude by April 30, according to the release.
The seemingly abrupt closure of Corwin’s craft arms – Kendall’s Pioneer Distributing and Browar Polska – riled the Washington craft community. Washington Beer Blog described the situation as “dire.”
“The sudden shuttering of those two businesses impacts a number of craft breweries in a very negative way,” Kendall Jones wrote. “With the snap of a finger, those breweries are now without a distributor in certain territories. This has already impacted some breweries and could very seriously impact them all.”
Northbank Brewers Alliance (NBA), a non-profit organization supporting craft breweries along the Columbia River, also shared the news.
“We are dismayed by the news this week that Corwin Distribution will dissolve Kendall’s and Browar Polska Distribution due to their buyout by PepsiCo,” NBA presidents Bolt Minister and Brendan Greenen wrote on Facebook. “This consolidation serves to injure the Northbank brands held by Corwin and will echo for years to come in southwest Washington craft beer.”
Kendall’s territory includes southwest Washington, while Browar Polska distributes in the Seattle area and eastern Washington.
PepsiCo has been wading into the beverage-alcohol industry since 2021, when it announced the formation of Blue Cloud Distributing, a nationwide network of bev-alc wholesalers it was building with Boston Beer-produced Hard MTN Dew as its flagship product. Blue Cloud’s rollout has been bumpy, as evidenced by Hard MTN Dew’s staggered roll out, which has only reached 11 states one year after its launch.
Although Hard MTN Dew has yet to launch in Washington, Blue Cloud has six permits for alcohol wholesalers in the state filed with the Department of Treasury Alcohol and Tobacco Tax and Trade Bureau (TTB). The address of one of those permitted wholesalers is 219 S. Timm Road, also Corwin’s address. Other locations for listed Blue Cloud permits include Auburn, Everett, Seattle, Redmond and Spokane.
Corwin founded Kendall’s in 2014. The offshoot is named for Kyle and Laura Kendall, who co-founded Corwin with their daughter and son-in-law Harold Corwin in 1941. Kendall’s portfolio includes local craft offerings (Barrel Mountain Brewing, 5440 Beer, Everybody’s Brewing, Reverend Nat’s Hard Cider, Ex Novo and Alter Ego Cider, among others), regional offerings (Grand Teton Brewing, Anchorage Brewing, Tieton Cider Works, Hellbent Brewing), national brands such as Boochcraft and 101 Cider House and several European imports.
Browar Polska was founded in 1998 and acquired by Corwin in 2019. Its portfolio includes beer, wine and spirits, with an emphasis on European beer and wine. Browar Polska sells 22 brands of domestic and craft beer, 44 import brands, seven ciders and five wines and meads, according to its website.
According to NBA, the abrupt shutdown “did not give sufficient notice to the craft brands in their book to be able to pivot in a reasonable manner.”
“This short notice has already led to layoffs at the individual breweries and will most definitely lead to more in the future,” the organization wrote. “This lack of communication about their plans with PepsiCo will also deprive the craft beer community in Washington State now and for years to come.”
Washougal-based 5440 Beer told a concerned consumer in a Facebook comment that it has “a really smart and capable team of business owners coming up with plans so hopefully we won’t skip a beat.”