Chapter 5
Appetite for Acquisition

In March 2000, the dot-com bubble burst, but Harbor Wholesale remained largely unaffected. Despite a brief recession, the company’s business continued to grow steadily.

Sales manager Ron Black secured a major deal with Walgreens in 2000. Previously serviced by McLane, Walgreens was persuaded to switch to Harbor after Ron demonstrated the company’s flexibility and product range. After a successful pitch at Walgreens’ Chicago headquarters, Harbor began servicing over two dozen stores across Washington, Oregon, and Idaho.

In 2001, Harbor signed a deal with Bartell Drugs, a family-owned chain of 55 stores in the Puget Sound region. The surge in business led to a 20,000-square-foot expansion of the Tumwater warehouse, including new loading docks, freezer/cooler facilities, and office space. A warehouse management system was also implemented to improve efficiency.

Harbor launched a coffee roasting division in 2001, branding it Dominic’s, named after the Erickson family’s maternal grandfather. Led by Scott Erickson, the division grew to serve over 600 customers and roast 200,000 pounds of beans annually. Dominic’s also opened drive-through espresso shops and partnered with local entrepreneurs.

By the mid-2000s, tensions between brothers Mike and Steve Erickson escalated, leading to a leadership crisis. In 2006, the board exercised a buy-sell agreement, resulting in Steve’s retirement. Mike continued to lead the company with support from Justin, Scott, Bob, and COO Jeff Anderson.

Justin and Scott Erickson were appointed co-presidents, with Justin overseeing sales, marketing, and transportation, and Scott managing operations and IT. Bob Erickson became CFO. Together, they crafted a bold vision to build the “Premier West Coast Distribution Company.”

In 2007, Harbor sold Dominic’s Coffee to Dillanos Coffee Roasters for nearly $1 million. The next day, Harbor acquired Paul Jackson Wholesale, a family-owned distributor in Roseburg, Oregon, marking Harbor’s largest acquisition to date. This move expanded Harbor’s geographic reach and added a satellite warehouse.

Harbor purchased and retrofitted a 100,000-square-foot horse trailer factory into a modern distribution center. The facility included freezer and refrigerated space, a refrigerated dock, and office space. Sales doubled in the first year and again the next.

Harbor acquired Klamath County Candy and Tobacco in 2009 and partnered with Northern Sales Company to serve customers in Alaska. These moves helped push Harbor’s revenue to a record $357 million.