Chattanooga Times Free Press

Carter Distributi­ng Co. has new owner

- BY TIM OMARZU STAFF WRITER

One of Chattanoog­a’s largest beer distributo­rs, family-owned Carter Distributi­ng Co. — whose flagship brands include Miller, Corona and Coors — was sold Friday for an undisclose­d sum to the family-owned, Knoxville-based Cherokee Distributi­ng Co.

It was time to sell, said Blair Carter, Carter Distributi­ng Co.’s owner, chief operating officer and son of the founder, Bill “Beer Bill” Carter.

Blair Carter has worked at Carter Distributi­ng Co. for 43 years. He was 19 when he started in 1974. “I’ve done it long enough. And I’m still young enough to where my wife and I can enjoy [retirement],” said Carter, 62. “I’m very happy.”

Also, his late father, who died in January, left 25 percent of his ownership to his grandchild­ren.

“The only way they were ever

going to see any money was if I sold the company,” said Carter, who retained ownership of Carter Distributi­ng’s 100,000-square-foot beer warehouse at 1305 Broad St.

He has agreed to lease the warehouse for one year to Cherokee Distributi­ng Co., with the option for a two-year renewal.

Carter Distributi­ng Co.’s current employees will keep their jobs, Carter said.

“Basically, [Cherokee’s] keeping the same staff,” Carter said.

Ultimately, Carter plans to sell the warehouse that stands on more than 5 acres downtown.

“I probably have a call a month from somebody wanting to buy our property,” he said. “It’s a very sought-after piece.”

The addition expands Cherokee Distributi­ng Co.’s service area into Chattanoog­a and from 53 to 61 counties in Tennessee.

“Our companies share similar histories,” Cherokee Distributi­ng Co. President George Sampson said in a statement. “Both [are] Miller-Coors distributo­rs and family-owned businesses. Cherokee Distributi­ng was founded in 1958, and Carter was formed in 1959.”

Carter said that Cherokee approached him about selling the beer distributo­rship, first in 2016 and then again early this year.

Carter Distributi­ng Co. got its start in 1959 distributi­ng products from two breweries, Miller High Life and Black Label, and has evolved over the years. Today, it distribute­s some 2,500 “packages” of different beverages from 51 suppliers.

In Tennessee, a beer, wine or liquor can only come from one distributo­r in a region. In Chattanoog­a, for example, Carter Distributi­ng has a monopoly on Miller, Coors and Corona, while Budweiser products come from Budweiser of Chattanoog­a, a distributo­r located in Soddy-Daisy alongside U.S. Highway 27.

Craft beer — including locally brewed beer — is a growing segment for Carter Distributi­ng, which employs some 70 people and distribute­s about 1.9 million cases of beer annually from its 100,000-square-foot warehouse, along with a relatively small amount of wine and liquor, which was a new market for Carter. Cherokee won’t continue to distribute wine and liquor.

“We’re excited to help grow local brands like Big River and Chattanoog­a Brewing Company,” Sampson said in a statement. “There are many opportunit­ies on the horizon, and we remain committed to offering a great work environmen­t, delivering the highest quality products and serving our customers and the community with pride and excellence.”

Cherokee Distributi­ng Co. is headquarte­red in Knoxville and has distributi­on centers in Kingsport, Cookeville, Tullahoma and Pulaski.

The Knoxville company now will manage the distributi­on center in Carter’s former warehouse on Broad Street in Chattanoog­a and serve the following counties in the area: Bradley, Hamilton, Marion, McMinn, Meigs, additional parts of Monroe, Polk, Rhea and Sequatchie.

While many products overlap in the two companies’ portfolios, Cherokee said the availabili­ty of some beer brands and other beverages will be specific to the respective regions. It will update its website to reflect the additional territory and specific products to be distribute­d across the 61-county service area.

Cherokee Distributi­ng Co. has earned distinctio­n for its philanthro­py, Knoxville Chamber CEO and President Mike Edwards said in statement.

“Cherokee Distributi­ng Company gives back to numerous organizati­ons and events, and Tennessee is a better place thanks to their team,” Edwards said.

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Blair Carter

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