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Cott sale brings another jolt

Shareholders of Refresco gave approval to the $1.25 billion Cott purchase, which includes the Dunkirk site.

Employees and local officials cannot help but be a bit unnerved regarding last week’s news that Cott Corp. has sold its beverage business to Refresco, a Netherlands-based company.

As we all know from the past, when these deals happen it does not always translate well for the area. It took ConAgra less than a year to begin to dismantle a successful Carriage House operation that still has the area economy hemorraging. What took decades for the former Red Wing plant to build in reputation and work force in Dunkirk and Fredonia was gone within a year.

That also meant a loss of 400 jobs, which is close to the number of people who work at the current Cott site in Dunkirk.

It was in 2010 that Cliffstar was sold to Cott, at right. While employee numbers remain fairly consistent, it was the administrative positions that were lost. Also lost and was a source of frustration is the purchase of grapes from local farmers.

Maybe some of this will come back under Refresco. For now, some area leaders are sounding upbeat.

“This is a good thing for the Dunkirk plant as Refresco has a very strong balance sheet and they’re investing in North America with the intentions to grow the business in North America,” said Kevin Sanvidge, Chautauqua County Industrial Development Agency administrative director and chief executive officer. “This is positive news for the employees at the Dunkirk plant.”

Though optimism is in the air in Dunkirk for the Athenex project and the NRG Energy Inc. repowering, emotions are very fragile when it comes to any deals involving local businesses. Sanvidge, who was a Cliffstar executive, probably understands the beverage market than anyone else locally.

Unless we hear otherwise, we will heed his words.

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