Columbia, Mt Hood, Both Big Players in NAs in Pac NW, Plan Merger   Whoa!  Two Portland, Ore-based rivals in beer and NAs in Pac NW are gettin’ together into what promises to be powerhouse operation with extensive portfolio of NAs.  The pair are Columbia Distributing, which operates in western Ore and around Seattle, and Mt Hood Beverage, serving western and central Ore as well as Yakima Valley and Tri-Cities in Wash State.  Focus of deal is blending of Miller and Coors operations at time that SAB Miller and Molson Coors are working to set joint venture in N Amer, but deal also brings under 1 roof extensive array of NAs including familiar names like Snapple, Rockstar, Red Bull, AriZona, Fiji and Jones.  Closing of deal of course is contingent on most suppliers on beer and NA side offering their blessing.

Merger would create 1 of top 10 beer distribs in US at 25 mil case+, 35 mil cases, including NAs, if all suppliers approved.  The 2 cos’ wine bizzes will remain separate.  Beauty of deal is they join forces without adding debt.  Rather, existing ownership of Agnew and Lytle families, families of Ed Maletis and Ron Fowler, and principals of Endeavour Capital continue as owners.  It’s 50/50 deal with 3 board members from Mount Hood (Dick Lytle, Steve Lytle and Dan Agnew) and 3 from Columbia (Ed Maletis, Ron Fowler, John Von Schlegell).  They hope to close by early fall.  Also included in deal is smaller Medford, Ore-based Gold River Distributing, co-owned by Steve Lytle and serving southern part of state.  So to paraphrase earlier thought, Whew!

Chmn of new co will be current Mount Hood prexy/ceo Steve Lytle while prexy/ceo will be Greg Christiansen, currently prexy of Columbia.   Merged Columbia/Hood co will adopt acronym CoHo (get it? that’s also name of salmon).  So now Coors and Miller will be in same house in Portland, Eugene, Bend and other Ore mkts even as Miller and Coors prepare to move ahead on their joint venture.  Rockstar and Red Bull will be in same house, tho not in same geography.  Among NA brands in Columbia portfolio in Ore, Wash or both territories are Snapple, Fiji Water, Red Bull, FRS, Guayaki, Honest Tea, Jones Soda, Izze, Reed’s, Talking Rain, Big Red and Thomas Kemper sodas.  Mt Hood NA portfolio includes likes of AriZona, Rockstar, Nutrisoda, Kombucha Wonder Drink, Cuba, locally produced Viso enhanced water and Cott’s Emerge enhanced water.  Collectively, 2 cos will do $600 mil in beer and NAs, with further acquisitions undoubtedly in future.  Also interesting to watch will be whether, as 1 set of doors to new bevs closes, other suppliers such as Odom expand to pick up slack.