Simon Levi Quits Liquor Distribution; 275 Jobs Lost

Simon Levi Co., a Carson-based firm with a 115-year business record, has closed its wholesale liquor distributorship and eliminated 275 jobs.

Levi, which has distributed leading distilled spirits in Southern California since 1934, officially eliminated that operation Friday. The company, which evolved from 1870s-era general store operations in Temecula and San Diego, will continue to own and sell a line of wines and beer. The firm eliminated its food operations in 1952.

The company decided to close the wholesale operation because it lost access to the major liquor brands when distillers awarded their lines to other wholesalers, according to Jay Jacobs, president of the company. Jacobs said Levi was a casualty of a industrywide consolidation in California.

“Ten years ago, there used to be 20 major wholesale liquor distributors in California,” he said. “Now there are three.” Other industry sources said Jacobs’ figures sounded accurate.

Jacobs said the big blows occurred in the summer of 1987 when two major distillers ended long relationships with Levi by opting for another wholesaler. The products of the two distillers generated about 55% of Levi’s revenues, Jacobs said.

“There are virtually no contracts in this business,” he said. “If there’s a contract, it can be terminated in 30 days.”

Jacobs said Levi is liquidating its assets by selling inventory and equipment. Among those losing jobs were truck drivers, sales staff and clerical workers, he said.

“I really feel sick,” Jacobs said. “I have two sons. I thought we were going to leave them something worthwhile. . . . I also feel terrible for the 275 employees.”