Courtesy / Casco Bay Food and Beverage
Casco Bay Food and Beverage’s main warehouse is in Lewiston. Products are picked and packaged for delivery every morning.
January 8, 2024
Lewiston company turns ownership over to employees, joining dozens of ESOPs in Maine
Courtesy / Casco Bay Food and Beverage
A driver refills a cooler in one of the company’s self-serve markets, updating inventory in real time on his handheld device.
Another Maine company has joined the dozens that have opted for an employee stock ownership plan, a benefit structure that allows employees to own a piece of their company in the form of stock.
Casco Bay Food and Beverage in Lewiston transitioned to an ESOP in late December.
Ted Morton, the company’s founder, approved the decision, citing his commitment to employees, customers and communities.
“Becoming an ESOP allows us to share our success with these employees and see them benefit from the company’s prosperity,” said Niki Morton, the company’s executive vice president and Ted’s wife.
The Mortons said ESOP organizations are 25% more likely to stay in business and show job growth.
Studies have shown that ESOP participants tend to have higher retirement account savings in comparison to non-ESOP counterparts and also have better job security.
The Mortons will continue to be involved with the business for the foreseeable future with their outstanding senior management team continuing to oversee the day-to-day operations, Spencer Willows, the company’s marketing manager, told Mainebiz.
Terms of the transaction and the financing were not disclosed.
Initial shares in the company will be distributed to eligible employees this year.
Casco Bay Food and Beverage operates out of three branches, in Portland, Lewiston and Bangor and has a fleet of over 50 vehicles. It also operates three on-site dining centers and a full-scale culinary center.
Casco Bay joins more than 60 Maine companies that are structured as ESOPs. They include Day’s Jewelers, Cianbro, Moody’s Collision, ReVision Energy, Sebago Technics, Haley-Ward and Bull Moose.
Casco Bay provides customized vending and other services to the workplace, including “micro markets” with touch-screen access, water cooler service, tea and coffee service, in-house dining options, catering, and compostable utensils and paper products.
Ted Morton launched the company in 2008 as Casco Bay Vending, with two employees on two routes, covering southern Maine and filling 200 vending machines. Today, the company has grown to 80 employees, covering 14 of Maine’s 16 counties on 38 routes, producing 10,000 pieces of fresh food weekly, and filling over 4,000 machines.
ESOPs are one of several “exit ramps” for independent or family-owned businesses in Maine seeking a succession strategy. In response, some wealth management advisors are expanding their ESOP practices. For example, Portland-based Spinnaker Trust added two key hires in that specialty last October.
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