Since the boom started, people in the area in and around Odessa began consuming another 800,000 cases of beer, according to the head of Standard Sales, the largest beer distributor in the area.
So the company needed a new facility. They broke ground Wednesday on a more than 150,000-square-foot tilt-wall concrete distribution center at the corner of JBS Parkway and Pearl Street.
CEO Lanny Layman said he expected about 4 million cases of beer to make their way to retailers through the new center every year — about a fourth of the company’s sales, which include operations in Colorado and Mississippi.
“We’ve kind of outgrown our old one,” Layman said.
The facility, which Layman estimated will cost more than $20 million, is expected to open next year. It will be more than twice the size of the current distribution center that company officials plan to sell.
Local government and Odessa Chamber of Commerce officials joined business people at the ceremony.
Ector County Commission Armando Rodriguez of Precinct 4 that will include the new facility praised it as a mechanism to retain jobs outside the oilfield.
“It keeps jobs here, especially in Ector County, as something stable . . . that’s good,” Rodriguez said. The area along JBS, he said, keeps growing.
Guy Andrews, economic development director for the Odessa Chamber of Commerce, said it was important to keep the Standard Sales distribution center from relocating to another city in the area. It is being built on land of the Odessa Industrial Development Corporation, with a $1 million grant spread equally over five years as an incentive.
“This facility is going to be the showpiece to the new entrance of Odessa,” Andrews said, citing the city’s eastward expansion.
Standard sales began in 1952, founded by Ted Roden — brother of Tom “Pinkie” Roden, the one-time bootlegger turned businessman and power broker who built the regional “Pinkie’s” liquor chain. Primarily, Standard Sales distributes Budweiser products.
In the early days, there were two employees wholesaling about 100,000 cases of beer a year, said Frank Deaderick, a nephew of both men who retired as Standard Sales president and CEO in 2010.
Planning of a new facility actually began before Deaderick left, he said.
“Every business is associated out here with oil business, when we’re doing well,” Deaderick said.
Deaderick was at the event with his aunt, Ted Roden’s surviving wife Jan.
“I love it to death and I know Ted would too,” Jan Roden said. The facility affirmed, she said, “that we are on top.”