110 Years After Its Founding, Bernick’s Continues To Grow, Evolve
By Louie St. George III
When Charles A. Bernick and his wife, Elizabeth, purchased Granite City Bottling
Works and founded the Bernick’s brand on April 26, 1916, they couldn’t have
known that it would still be going strong 110 years later.
Even more impressive: It’s getting stronger.
What’s the secret? How does a company survive the hardships wrought by a
couple world wars and other conflicts, multiple infectious-disease pandemics,
economic crises, constantly changing consumer tastes and countless additional
challenges that could have sacked the distributor?
It’s about family, says chief executive officer Jason Hinnenkamp, which is fitting
for this fifth-generation, family-owned business that employs nearly 700 across
Minnesota and Wisconsin. Like so many of his colleagues, the CEO has deeply
entrenched family ties to Bernick’s. His father put in 30 years for the company,
prompting Hinnenkamp to get his start as a high schooler, picking cases and
loading trucks in the warehouse.
His story, while compelling, isn’t all that unique. So many of the current Bernick’s
workforce can tell a similar tale about a parent or parents who were longtime
employees. That continuity breeds a certain amount of ownership and pride in a
brand that is highly respected across the Upper Midwest.
“One of the biggest factors for us is that we have a work family that is very
respectful to each other, including the management team,” says Hinnenkamp,
who has been with Bernick’s in different capacities for 25 years. “We are very
much a cohesive group with the staff, owners and shareholders. When you get
into the fifth generation, so many companies tend to break apart by that time,
often because of financial issues. But that’s not the case here. I give a lot of credit
to our shareholders, our owners — they are committed to making sure the
Bernick’s brand continues to grow.”
Headquartered in Waite Park, Bernick’s operates warehouses and offices
throughout greater Minnesota (St. Cloud, Duluth, Brainerd and Bemidji) and
western Wisconsin (Superior and Dresser), serving an ever-expanding retail
customer base. Its service area extends from the Twin Cities suburbs north to the
Canadian border, and western Minnesota to western Wisconsin.
Across its footprint, Bernick’s serves more than 10,000 soda, beer, hot beverage,
THC and vending customers. It has consistently grown, both its customer base
and with more products to choose from, including acquisitions of longtime
Northland stalwarts Rohlfing Distributing, Northwest Beverages and, more
recently, Michaud Distributing.
Continuing to thrive, and get bigger, while navigating the numerous industry
shifts and challenges, has required flexibility, a commitment to adaptability. Some
of the biggies are the ebbs and flows of the economy, which impacts disposable
income; government regulations that change from administration to
administration; keeping up with what folks want to drink; and ensuring a
sufficient and stable workforce.
Dean Bernick, current board chair and former CEO, says consumers are currently
pulling back and not spending as much.
“People are changing preferences rapidly and they are consuming less,” agreed
Hinnenkamp, who became a certified public accountant after college before
returning to Bernick’s.
Like any company, Bernick’s notices and responds accordingly.
“Part of management’s job is to evolve and figure out ways to be successful in
new environments,” Dean says.
Constantly Changing Consumer trends
To get a sense of just how much the beverage industry is defined by competition
and change, all you have to do is walk through a gas station or grocery store.
Entire walls — sometimes more than one — are lined with colorful coolers. Door
after door is filled with soda, energy drinks, sports drinks, water, juice, milk and a million other thirst-quenching goodies. It’s a nightmare for anyone with even a
trace of indecision.
And the turnover is dizzying. Those same coolers will look different next week,
and even more so next month. That’s because consumer trends are ever-
changing. What’s popular today will be a dud eventually, and sooner than later.
Case in point: dirty soda. As Dean explained the gist of dirty soda, it sounded an
awful lot like what some folks call swamp water, in which several different sodas
are combined into a single sugar-lover’s dream. Kind of, but not completely, Dean
said. Dirty soda involves adding new ingredients — cream or cherry, for example
— for a different taste. A more sophisticated version of swamp water, perhaps.
Dirty soda is all the rage right now. But for how long? Therein lies one of the
trickiest aspects of this business, trying to reasonably forecast shelf lives for the
latest trends. Those forecasts determine how much time and energy a company
like Bernick’s will devote in order to capitalize on the craze before it fizzles out.
“This phenomenon will have a runway of two years before it’s replaced by
something else,” Dean explains of dirty soda. “You have to figure how much
energy, how much time you want to put into this. You want to put in the right
resources, but you don’t want to overinvest.”
Hinnenkamp shares a similar outlook.
“I don’t think it’s gonna be around long-term, but right now that’s what the
consumer wants,” he says.
The current level of change is unprecedented, Dean says. Keeping a finger on the
pulse of consumer preferences has never been this difficult.
“I think there’s more change in a year now in our industry than there used to be
in 10,” Dean says. “Everything is changing at an increased rate. It is unbelievable.
And if you don’t change today and evolve with your consumers, you simply
cannot survive.”
Unlike dirty soda, another relatively recent change appears to have much more
staying power. THC drinks, those infused with tetrahydrocannabinol, or the
psychoactive compound found in cannabis, continue to spike in popularity. As they do, any lingering stigma around the beverages fades into the distance like a
swirl of smoke. The demand, combined with increasing societal acceptance,
portends a product with some permanence. Bernick’s began distributing THC
drinks in mid-2023, making it a relatively early adopter. That doesn’t mean it was
a decision made in haste.
“There was a fair amount of conversation, knowing that you’re gonna have a
third of the population that’s against it,” Hinnenkamp says. “But this is what the
consumer wants. It’s legal and there are some real health benefits, compared to
the alternatives. We can comfortably say that without government regulation,
this is gonna be around long-term.”
Dean points to the long-running ethos of the company when describing Bernick’s
willingness to dip its toes into THC drinks.
“We’ve always been very progressive and want to make sure we keep up with the
consumer,” he says. “Sometimes, you have to be a little bit aggressive. It goes back
to culture, and in our history, we’ve always done that.”
Hinnenkamp says people increasingly are moving toward more healthy drinks.
They’re less likely to consume a 12-pack of Mountain Dew each day. If he had his
druthers, that’s likely what Hinnenkamp would do, but Mountain Dew is more of
a treat these days, having been replaced by Diet Pepsi.
Thanks to the internet and social media, the CEO and his team have a stunning
amount of data at their disposal. It clarifies what customers are into, but it also
requires careful analysis to determine the appropriate level of investment.
What’s worth going all-in on and what isn’t. That, in itself, is an art form,
demanding experience, foresight and a certain level of risk-taking. Is something
merely a fad or is it here to stay?
“What we have to look at is, at what point do we want to jump on that trend,”
Hinnenkamp says.
“You better adjust if you’re going to move forward,” Dean says.
Room to Grow
For Bernick’s, part of the adjustment has involved looking for strategic growth
openings, whether that’s adding THC beverages, acquiring other distributors or
expanding into new regions like the Iron Range, the northern part of the Twin
Cities and around Bemidji.
Like so many other industries, there is strength in numbers — or, more
accurately, strength in size. Smaller distributors are finding that the challenges
keep mounting. Survival demands scale, and that’s more easily achieved by
bigger companies. Michaud, for example, had been a longtime competitor. Dean
says conversations between the two businesses began seven or eight years ago.
“If you are a smaller distributor, like Michaud was, it’s getting more and more
difficult,” Dean says.
Specifically, he noted the myriad specialists that are needed, like IT and human
resources professionals, tech gurus and lawyers. It’s a big obligation for a small
outfit.
“It just wears you out,” Dean says. “Everything is harder.”
Similarly, suppliers typically prefer working with larger distributors who operate
in more markets. That limits the number of distributors they have to deal with.
“One of the big things we look at is when suppliers come into the state, they
obviously don’t want to go with seven, eight or nine distributors,” Hinnenkamp
says.
The CEO says Bernick’s is always interested in expanding, when and where it
makes sense. They’re always up for a discussion with smaller distributors starting
to explore the possibility of a sale.
“If they’re ever interested in selling, we’d love to have that conversation with
them,” Hinnenkamp says. “It’s all about bringing value to our retailers and,
ultimately, the end consumer.”
Another area with a lot of potential for Bernick’s to grow into? Automation and
artificial intelligence, or AI as it’s more commonly known. Both can help the
company do things smarter, safer and more efficiently. Hinnenkamp says within
the next two to three years, the cases Bernick’s delivers won’t be touched by a human being until they arrive in stores. Collecting cases, loading them onto
pallets and getting them into trucks will be 100 percent automated.
“Right now, it’s just very hard to find people,” Hinnenkamp says. “So you’re being
forced to automate, in part, because you don’t have the staff.”
Added Dean: “That’s the next dynamic that’s going to change our business model.”
Looking Back — and Ahead
Charles A. Bernick and Elizabeth started with a modest inventory of 200 empty
soda pop cases way back in 1916. Product was delivered via horse and wagon —
or sleigh in the winter. From those humble roots sprang a multimillion-dollar
distribution company that continues to thrive. Dean was asked if Charles was his
great-great grandpa.
“I think so, but you lose track of the greats,” he joked.
Dean was baptized into the family business with the help not of a silver spoon,
but rather a blue collar. Nothing was given to him merely because of his
prominent last name. Beginning at the age of 16, he started at the bottom just as
any new hire would. Dean, whose father fixed and delivered pop machines for
Bernick’s, cut the grass around the company’s property, trimmed trees, ran lines,
put up signs and sorted bottles.
“Expectations were maybe higher for you because you had the family name,” he
says. “You appreciate what it takes to be successful.”
Eventually, Dean moved into delivery and sales before joining the Bernick’s
leadership team. Along the way, Dean says, he did just about every task
imaginable. It made him a better manager, he admits, able to understand what
individuals involved in different roles were going through.
As he climbed the ladder, Dean watched and learned. Certain themes began to
emerge, over and over. Building and nurturing relationships was critically
important — both with customers and colleagues. Ditto for being an engaged and
reliable community member, as well as treating people well. They are little things
that can make a big difference.
Dean says he was “very lucky” to be named CEO in 2009.
Then, as now while serving as board chair, his objective is equally simple and
ambitious.
“My goal, like many leaders, is to pass it on to the next generation better than it
was when I got it,” he explains.
These aren’t empty words or flimsy aspirations, not for someone who’s devoted
more than 50 years — his entire professional career — to the same company.
Dean is unwavering in his dedication to the Bernick’s brand, to pushing it
forward amid all the industry upheaval. He’s still energized by the work, even if it
looks different than it did during his tenure as CEO. Now, he says, he reads a lot,
keeps up with emerging trends and looks for “growth opportunities.” He’s
constantly encouraging Hinnenkamp and other company leaders to think outside
the box.
Like Dean, Hinnenkamp believes he’s a stronger leader thanks to the experience
he gained starting at the bottom. Grunt work in the warehouse wasn’t flashy, but
it was important then just as it’s important now.
“When you start there and knowing what those team members go through, from
a physicality standpoint and a quality-of-life standpoint, it gives you a better
appreciation for what they do every day,” Hinnenkamp says.
Bernick’s is vastly different now than it was when Dean first joined the staff as a
teenager. “It’s been a hell of a ride,” he says.
But one thing hasn’t changed — the feeling he gets when he sees a company truck
chugging toward another delivery, another satisfied customer, another
relationship that took precious time and care to cultivate. They are little
reminders that, even after 110 years, people still appreciate the brand and what it
stands for.
“You still enjoy watching a truck with the Bernick’s name driving down the
highway,” Dean says proudly.
That sense of pride pervades the company. Much of it stems from the Bernick’s
commitment to community. That includes giving back at least 5 percent of its profits in the form of grants, product, volunteerism and more. Annual
contributions go to “organizations through leadership and responding to
emerging community needs — like supporting capital projects, new or expanded
programs, or strategic investments in operations,” according to the company’s
website.
“That’s to build that connection with our communities,” Hinnenkamp says.
“We’re not just here to sell a product. We’re here to partner with you all and
recognize what you’ve done for us.”
He doesn’t have to plead with his staff to be engaged in their communities.
“They want to be out there,” Hinnenkamp says. “They want to give back within
the geography where the people have made us what we are.”
Louie St. George III is a Duluth-based freelance writer.
