Southern Glazer's Acquisition of Eagle Rock Triggers 526 Colorado Layoffs, Including Durango

Eagle Rock Distributing Co. filed a notice with the Colorado Department of Labor and Employment on April 3 listing 526 permanent layoffs across its Colorado facilities, effective June 5, including its Durango location. But the company acquiring Eagle Rock's Colorado operations has said it intends to keep those workers, creating an unusual split between legal paperwork and stated intentions that has left employees in limbo.

Southern Glazer's Wine & Spirits, the world's largest alcohol distributor with operations in 47 U.S. markets and Canada, announced on March 23 that it had agreed to acquire substantially all of Eagle Rock's Colorado assets. The deal is expected to close in summer 2026, and Southern Glazer's has stated it plans to continue operations out of Eagle Rock's existing facilities and serve the same Colorado markets.

Terri Hayes, President of the Tri Lakes Chamber of Commerce, told Fox 21 News that Southern Glazer's plans to retain employees and facilities and continue distribution operations in Colorado. The WARN notice is legally required under federal law regardless of whether affected workers are ultimately rehired by the acquiring company.

The layoffs span Eagle Rock facilities statewide. The Loveland facility accounts for nearly 140 of the 526 affected workers, making it the hardest-hit single site. Other affected areas include Adams, Denver, and Larimer counties, as well as the Mesa, Pikes Peak, and Rural Alliance service areas.

Southern Glazer's, headquartered in Miami and Dallas, is acquiring Eagle Rock's full Anheuser-Busch Colorado portfolio, which includes Michelob ULTRA, Busch Light, Budweiser, and Bud Light, along with hard beverage brands such as Cutwater Spirits, NÜTRL Vodka Seltzer, BeatBox Beverages, and Phorm Energy. Brands from Tilray Brands and the Sazerac Company are also part of the transaction. Eagle Rock's Georgia operations are not included in the deal.

Wayne E. Chaplin, President and CEO of Southern Glazer's, said: "Eagle Rock has built a strong business in Colorado with a highly respected team and valued supplier partnerships. By bringing our organizations together, we can expand opportunities for suppliers and provide even greater choice and service for customers."

Mike Economos, President of Eagle Rock, added: "Southern Glazer's shares our values as a family-owned company with a deep commitment to building strong supplier and customer relationships. We're confident this next chapter will build on Eagle Rock's legacy and continue delivering exceptional service throughout Colorado."

Not all parties are taking the transition at face value. Chicago-based class action firm Strauss Borrelli PLLC announced on April 7 that it is investigating Eagle Rock for potential violations of the federal WARN Act, which Congress passed in 1988. The law requires employers with 100 or more workers to provide at least 60 days' written notice before a plant closing or mass layoff. Employees who did not receive proper notice may be entitled to 60 days of back pay and benefits.

The Eagle Rock acquisition is part of a broader consolidation push by Southern Glazer's. The company announced the purchase of Clare Rose, a Long Island-based Anheuser-Busch distributor, just one week before the Eagle Rock deal, and had previously struck an agreement to acquire AB InBev's distribution business in New York City.

Eagle Rock's Colorado operations were established as a separate entity from the Georgia business, which John Economos and Steve Craine reorganized in 2000. The company's lineage stretches back to 1930, when Stuart P. Murray founded Atlanta Beverage Company, the predecessor now headquartered in Norcross, Georgia.