Another Sacramento business bites the dust

March 14, 2013

By Katy Grimes

New coke can - wikipedia

Coke — it’s the real thing. But not for 60 Sacramento area Coca-Cola employees who are about to lose their jobs.

Only two months after Coca-Cola, Inc. purchased the locally-owned Sacramento Coca-Cola Bottling Company, Coke announced it is closing the bottling facility on Stockton Boulevard, putting 60 people out of work.

In January when the purchase was completed, Bevnet reported that the Cola-Cola company had been streamlining operations over the past three years. “This most recent deal comes 14 months after the cola giant acquired Great Plains Coca-Cola Bottling Co., which, at the time, was the fifth-largest independent Coca-Cola bottler in the United States, for $360 million. Coke also acquired Coca-Cola Enterprises Inc., its largest bottler in North America, for $12.3 billion in 2010.”

The Sacramento Bee reported David Ethridge, general manager of the Sacramento production facility, “said the timing of the shutdown has to be negotiated with officials at Teamsters Local 150, which represents the workforce at Stockton Boulevard. Teamsters officials were not available for comment.”

Surprise, surprise.

The pause that refreshes

The sixth largest independent  Coke bottler in the country, Sacramento Coca-Cola Bottling Company was founded in 1927. It currently employs more than 460 people in the Sacramento region.

The 2012 Thumbtack.com Small Business Survey, in partnership with the Kauffman Foundation, found Sacramento to be one of the least friendly cities for business.

Surprise, surprise.

The five least friendly cities were Sacramento, San Diego, Los Angeles, Tucson and Detroit, according to the survey. “More than 6,000 small businesses in Thumbtack’s database of 275,000 members — most of whom have five employees or less — responded to the survey,” CNN reported.

California received an “F” grades on tax code, regulations, health and safety, licensing, and overall business friendliness. The state received “D” grades on the ease of starting a business, environmental and zoning.

And the comments of business owners were telling:

* “Working with any government organization seems to have its difficulties. With the lack of competition, most government employees seem not to possess a personal drive in order to satisfy the general public, which in turn creates an atmosphere of dislike and distrust,” Thumbtack.com reported a business owner saying. “If the government was operated like a large business, I feel it would be more efficient and easier to deal with.”

* “The EPA regulations (CARB) is too extreme on small business with regard to emissions regulations in CA,” said another small business owner. “Worker’s compensation insurance is way over priced to small businesses and would better benefit in having an award system where it is similar to vehicle insurance in that your rates are much less for non-injury records.”

While Coca-Cola may be streamlining its operations, the business climate in Sacramento is so lousy, it was probably a relatively straightforward decision to close the production facility… if the Teamsters Local 150 allows this.

Even in California, things don’t always go better with Coke.

10 comments

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  1. larry 62
    larry 62 14 March, 2013, 14:38

    But, there are only 60 employees that will be out of work. Not a big deal as far as the morons at the Capitol are concerned.

    Reply this comment
  2. us citizen
    us citizen 14 March, 2013, 17:15

    I have another company that I do business with, leaving CA……..going to NV
    surprise surprise

    Reply this comment
  3. Hondo
    Hondo 14 March, 2013, 18:16

    Once again, the far greater number is the businesses that don’t come to Kali. It’s the investment dollars spent else where. It is a huge business expense to up and move to another state, or country. It is a huge dollar expense to up and move a family to another job in another state. You tear friends and families apart. Most businesses simply shut their doors, they can’t afford to move. Families slog through it till the house is foreclosed. When you have nothing anymore, you have nothing to lose by moving someplace else.
    But hi school grads and collage grads have no such chains, no houses, wives, husbands, ect. We paid for their education and now they are moving to other states to work. Investment money is even freer. It will go where it can make an easy (easier) profit. Where there is less regulation and taxes.
    These 60 jobs are like a cockroaches. You see only that many, but you know there are hundreds if not thousands you can’t see.
    Hondo…….

    Reply this comment
  4. SkippingDog
    SkippingDog 14 March, 2013, 18:22

    Why would you compare a business survey predominately comprised of businesses with less than 5 employees with the circumstances of the Sacramento bottling company? Coke itself said it was “streamlining operations,” which usually means automating production and moving your operations to some low wage, right to work hellhole where people think Coke is great for breakfast.

    Reply this comment
  5. Tea for thee
    Tea for thee 14 March, 2013, 20:09

    Sacto Steve where are you?

    Reply this comment
  6. Dyspeptic
    Dyspeptic 14 March, 2013, 21:55

    “right to work hellhole”

    Anyone who thinks the right to work without some union bosses permission is a bad idea is a collectivist idiot and an economic moron. If you want examples of hellholes StinkingDog, just look at closed shop cities like Detroit, Newark, Philadelphia, Chicago etc. They have much higher unemployment rates and higher taxes, crime and political corruption than any right to work state you could name. They also have the most brutal and obnoxious cops too. Can you say Kwame Kilpatrick. I knew you could!

    Reply this comment
  7. CalWatchdog
    CalWatchdog Author 15 March, 2013, 07:31

    Skipping dog – the reason a survey was done with small businesses is because most businesses in the US are small businesses. In California, small businesses account for 97% of all businesses. They have their finger on the pulse, and because they are so small, can make moves quickly and nimbly, unlike larger businesses like Coca-Cola. Coke has to streamline, instead of just making a few cuts when they see the market changing. It’s like turning an aircraft carrier around.

    And “streamlining” is code for cutting costs, not efficiency measures.

    Katy

    Reply this comment
  8. PJ
    PJ 15 March, 2013, 08:37

    Verizon is moving a big HQ in Orange County to Georgia and Ohio.

    Too expensive to do business here.

    Reply this comment
  9. stevefromsacto
    stevefromsacto 15 March, 2013, 11:08

    Here’s another factual report for all you California-hating Texas lovers to ponder:

    Conservative Californians: Hope Ya Brought Yer Own Water & Book-Learnin’

    by: Katherine Haenschen, Burnt Orange Report (Texas)
    Thu Mar 14, 2013 at 11:00 AM CDT

    The Texas Tribune released an interesting nugget from their polling results — it appears that the majority of Californians who flee the Golden State for the Lone Star are actually conservatives, rather than likely Democratic voters who can help turn the state blue.

    As Joshua Blank of the Texas Tribune writes of these transplants:

    The plurality of those [California] migrants have moved to Texas, as many as 70,000 in 2011 and 60,000 in 2012. Given this influx of new residents, we are fortunate to have at times asked our respondents whether they have moved to Texas from California, and though the actual number of these people is but a small subsample of our surveys, we have enough respondents to make two broad conclusions. First, these newcomers, on average, tend to be conservative. Pooling data from the May 2012 and February 2013 UT/Tribune surveys, we found that 57 percent of these California transplants consider themselves to be conservative, while only 27 percent consider themselves to be liberal (a fair guess as to the margin of error is somewhere around +/- 7 percentage points). Second, these new Texans aren’t rushing to find homes in the state’s urban centers: 55 percent are heading to the suburbs, the rest evenly dividing themselves between rural and urban locations.

    Well then.

    Welcome, Californians. Given your conservative tilt, I can only assume y’all have moved here to avoid the scourge of a state income tax that funds government services, public education, and basic civilization. Surely all y’all are aware that much of California’s dysfunction was due to Republicans’ abuse of the 2/3rds rule in the Legislature and endless efforts to obstruct functioning government?

    Well if Republicans obstructing functional government is what you’re into, you’ve come to the right state!

    Texas ranks 49th in per-student spending and 38th in teacher pay. We have the highest rate of uninsured residents of all time. Don’t care about those touchy-feely issues? Well, you probably like water and electricity. We’re facing a crisis in water that transplants like y’all are only exacerbating. Our power grid is unstable, so prepare for rolling blackouts.

    So welcome to Texas, conservative Californians. Those of us who care about health and human services, education, sustainability, and the environment are working pretty hard to turn things around, so pretty soon you might be facing a voter rebellion that results in the kind of progressive government that might send you packing again in search of redder pastures.

    But hey, I hear Alabama’s really nice.

    Reply this comment
    • CalWatchdog
      CalWatchdog Author 15 March, 2013, 13:08

      StevefromSacto: The exodus of conservatives from Calif. has been going on since about 1990. Many earlier went to the Mountain States. Now, to Texas. The main driving force is jobs. Second, cheaper housing (about 1/3 as much in Texas). Third, lower taxes. Middle-class people just can’t afford to live here anymore. I know I’m struggling badly. So are my middle-class friends.

      — John Seiler

      Reply this comment

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