Paul DeBauge is leaving the beer business.
DeBauge announced today that the assets of DeBauge Brothers distributing would be sold to two out-of-town companies. Most of its business, including the Coors distributorship, will be picked up by Crown Distributing of Salina. The Miller, Pabst and Anchor Steam lines will be taken over by Capital Distributing of Topeka.
“I’ve been in the beer business 40 years,” DeBauge said this morning. “I wanted to retire and the kids have all dispersed in a variety of other areas. It just wasn’t feasible to keep it in the family a third generation.”
The sale will take place July 14. The purchase price was not disclosed.
Paul’s father and uncle began DeBauge Brothers in 1929 as a produce company. Early on, the two bought out another produce dealer who also had a beer business. As large chain grocery stores and supermarkets emerged, the produce end of the business gradually faded out while the beer business took off.
After the death of his father, Paul and his brother Larry took over the business around 1968, adding soft drinks in 1972. By 1988, the beer division had $6.5 million in sales while the soft-drink division had $4 million.
The Coca-Cola operation later broke off from DeBauge Brothers under Larry DeBauge. Jeff DeBauge, Larry’s son, is now the Coca-Cola business’ chief executive officer. That company is not affected by the upcoming sale.
Today, DeBauge Brothers sells about 900,000 cases of beer a year. Crown will pick up about 750,000 of that business, with the rest going to Capital.
The move will leave Emporia with three beer distributors, none of them locally-owned: Crown, Capital and the Osage City-based Mussatto Brothers.
“It runs against the trends in most of the country,” Paul DeBauge said. “Most mergers result in a consolidation. ... But basically, we’ll have three distributors instead of two.”
The deal with Crown has been in the works for about two and a half years, with Capital added into the negotiations about six months ago. Crown, which is principally a Coors distributorship, also acquired a Junction City distributor about three years ago.
Meanwhile, Paul DeBauge and his wife Janice have some more time on their hands, especially since Janice DeBauge goes off the Kansas Board of Regents at the end of this week. The two plan to travel and see more of their grandchildren.
“We’re looking to be less busy than we have the last several years,” Paul DeBauge said.
Even so, he said, it’s not easy to step away from the business.
“There are a lot of great memories here,” he said.
sciguy (anonymous) says...
Are the jobs leaving Emporia, or just the ownership?
June 27, 2007 at 1:01 a.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
Ownership and Profits
June 27, 2007 at 9:06 p.m. ( permalink | suggest removal )