Beer deal erases more than 100 jobs at Oakland distribution center

OAKLAND — Wheeling and dealing by three beer companies will trigger the shutdown of an Oakland beer distribution center and unleash job losses for more than 100 workers.

An estimated 142 jobs will be eliminated in Oakland due to the wheeling and dealing among the three beer companies, according to an official WARN notice sent by Anheuser Busch to the state Employment Development Department.

Anheuser Busch is selling its beer distribution operations in Oakland to Bay Area beer companies Markstein Sales Co. and Matagrano Inc., leading to the shutdown of the plant at 8380 Pardee Drive.

“This transaction will result in the permanent closure of the facility,” Daniel Brill, president of AB One, a distribution unit of Anheuser Busch, wrote in the WARN letter to the EDD. “All employees at this location will have their employment ended at the Oakland facility.”

The layoffs are expected to be permanent since Anheuser Busch intends to cease operations at the site, Brill warned.

As of this week, the Bay Area distribution operations of Anheuser Busch will be parceled out to Markstein and Matagrano.

Markstein Sales will absorb the Anheuser Busch Oakland territory into its existing operations that are based in Antioch.

Matagrano will fold the Anheuser Busch-owned distribution enterprises into its operations in the San Jose and northern Santa Clara County regions.

Both Markstein and Matagrano will use their existing facilities to operate the respective chunks of the former Anheuser Busch operations in the Bay Area that they have obtained through the deals.

The distribution center on Pardee Drive could be headed for redevelopment. In 2020, Westcore Properties, a big real estate firm, bought the building for $40.5 million.

It’s possible that some former Anheuser Busch employees who are losing their jobs due to the transaction might find work with either Markstein Sales or Matagrano.

“We appreciate the opportunity to integrate Anheuser-Busch’s Oakland territory and members of its workforce into our operations and to continue bringing Anheuser-Busch’s leading portfolio of brands to our retail customers,” said Laura Markstein, president of Antioch-based Markstein Sales.

The sale of the distribution operations to the respective buyers is slated to be completed by July 29, the three companies stated.

“Matagrano is committed to the future success of the portfolio, and we look forward to welcoming members of the Anheuser-Busch team over the coming weeks,” said Matt Matagrano, president of South San Francisco-based Matagrano Inc.