THE BAKER COUNTY PRESS — 3
FRIDAY, APRIL 8, 2016
Business & Ag
Tasty Bake down to one
employee in Baker City
BY TODD ARRIOLA
Todd@TheBakerCountyPress.com
The abrupt halt in distri-
bution, employee layoffs,
a temporarily disconnected
phone number, and office
door sign stating “We are
NOT Accepting Applica-
tions” could all be sobering
indicators of Tasty Bake’s
future here: There may not
be one.
Earlier this year, the
company, which has had
a significant presence in
Baker City for over 30
years, suddenly stopped
shipment of its pizza
dough products, accord-
ing to three different food
brokers for Tasty Bake:
Ken Lance, of Colum-
bia Pacific Brokerage, in
Oregon; Matt Lindley, of
Main Street Marketing, in
Idaho; and John Portillo, of
Portillo Sales & Market-
ing, in Southern California.
Lance and Lindley
cited the cryptosporidium
outbreak in the summer
of 2013 as the catalyst
for the large reduction in
the workforce then, and
continuing issues, because
of the loss of distribution
to clientele, such as WinCo
Foods, a major contract for
Tasty Bake.
Portillo said that the
crypto was a non-issue,
because the company was
fully capable of continuing
its operation, even today,
with the change in owner-
ship.
Lance said, “That
crypto thing really crippled
them... It’s sad to see
something like that go—an
Oregon company that was
doing very well, to have
the crypto thing happen,
and then, this (the recent
halt in distribution, and
layoffs)...”
Lindley said, “I know
that crypto thing put a
damper on things ... Lo-
cally (in Baker City), the
loss is a big deal ...”
Portillo said, “I think
that (the crypto outbreak)
has nothing to do with
anything ... That is a moot
point ... When they (the
current owners) acquired
that company (in the fall of
2014, from former owner
and President from 2001 to
2014, Peter Johnson ), the
company had full capabili-
ties, and it had full team
members...”
According to an Oregon
Public Health Division
investigation, on Tuesday,
July 30, 2013, the Baker
County Health Depart-
ment (BCHD) notified the
Oregon Health Authority
(OHA) of three laboratory-
confirmed cryptosporidi-
osis cases at St. Alphonsus
Medical Center, because
Baker County typically
reports a single case of
cryptosporidiosis each
year.
The municipal drinking
water supply was sug-
gested as the likely source
of the illnesses, and in
response, the City issued
a boil water order on the
morning of Wednesday,
July 31, 2013, according to
the report.
On Monday, August 5,
2013, Johnson wrote via
email to Baker City Public
Works Director Michelle
Owen, “...like everyone we
are concerned about the
water. Our advantage is
that our product is cooked
at 400-600 degrees after
adding the water. We
are advised this will kill
— Weekly Hay Report —
Friday, April 1, 2016 — Eastern Oregon
Prices trended generally steady compared to
week-ago prices in a very limited test. Many
producers have decided to hold on to their hay for
now, in hopes for higher prices or to feed to their
own animals. Many hay producers are sold out for
the year.
Tons Price Range Wtd Avg
Alfalfa —Large Square Good
400 150.00-150.00 150.00
Alfalfa / Orchard Mix —Small Square Premium
10 195.00-195.00 195.00
USDA Market News Service—AMS.USDA.gov
— Cattle Market Report —
Wednesday, March 30, 2016
Vale, Oregon
Cattle sold through the auction: 958
Todd Arriola / The Baker County Press
Tasty Bake in Baker City sits virtually idle now.
the bacteria. Then the
customer cooks it again at
400-600 degrees. What is
the update, status on the
water. I know a test was
supposed to have been
done yesterday. Please
advise.”
In response, Owen stated
that initial tests confirmed
the presence of crypto the
previous Friday night,
August 2, 2013. She said
that more tests were being
conducted, and, “For now,
the boil water advisory re-
mains in effect... Continue
to follow the boil water
advisory until otherwise
notified.”
On August 8, 2013, a
voluntary product recall
was sent via email, from
Tasty Bake, to the U.S.
Food and Drug Adminis-
tration (FDA), regarding
490 cases worth of frozen
dough balls the company
produced between Au-
gust 1, 2013, and August
8, 2013, under the brand
name WinCo, or Tasty
Bake, and distributed in
Oregon, Idaho, and Wash-
ington.
On Friday, August 16,
2013, a large number of
employees—estimated at
possibly 30 to 56—were
laid off, and Johnson
cited the crypto outbreak,
and the ensuing loss of
clientele, as the cause for
the reduction in the work-
force, which he said was a
major loss for the com-
munity. Johnson declined
to comment on the current
situation, and on previous
issues, including the loss
of clientele, and layoffs.
According to Business
Oregon, between 1982 and
2010, Tasty Bake’s produc-
tion increased by more
than 400%, with distribu-
tion to schools, supermar-
ket delis, restaurants, and
retail outlets, in 11 western
states, southwestern Can-
ada, and Asia. In 2010,
the company received a
$100,000 loan from the
Oregon Business Develop-
ment Fund, and along with
private bank financing,
Tasty Bake met its oper-
ating capital needs, and
expanded production. That
same year, Tasty Bake re-
ceived a $50,000 BOOST
(Building Opportunities
for Oregon Small Business
Today) grant, which al-
lowed an expansion in the
workforce of 20 employ-
ees, for a total of over 60 at
that time. Also, beginning
in 2010, the company com-
pleted electrical, plumbing,
mechanical, and structural
projects, including a 15’ by
25’ exterior shed.
In the fall of 2014, cur-
rent Tasty Bake President
Yasar Samarah, of Mer-
chants Capital Corpora-
tion, of Chicago, Illinois,
acquired the company,
and the 37,000 square
foot property, including
the 15,000 square foot
building at 1945 8th Street,
which was constructed in
1951, from Johnson, with
the assistance of Rick Pip-
er, of Lake Oswego-based
The Piper Group, LLC, a
national and international
provider of middle-market
merger and acquisition/
business brokerage ser-
vices.
The Piper Group was
involved with the sales and
acquisitions of Tasty Bake,
at least as far back as 2001,
when Johnson acquired
the company from the
original owners, Roger
Brown, and Donn Mires.
Piper declined to comment
on whether there may be
any negotiations currently
with Samarah regarding
the company, because of
confidentiality agreements,
concerning offerings.
Samarah, Johnson, and
Brown communicated to
Piper that the sales and
acquisitions were positive
experiences with the Piper
Group.
Plant Manager Curtis
Taylor appears to be the
sole employee left to main-
tain the property during
the regular work week, ac-
cording to several sources;
however, he declined to
comment about the current
or future plans for Tasty
Bake, stating that the new
owners required him to
remain silent for now on
the subject.
Lance, Lindley, and
Portillo did comment
about the sudden termina-
tion in distribution after
the change in ownership,
the loss of clientele, the
layoffs, and the impacts to
the community.
Lance said, “Since then
(the beginning of the year),
there’s been no contact be-
tween us and Tasty Bake.
It was pretty abrupt, kind
of all of a sudden ... I think
it started in January (this
year), and by the beginning
of February, everybody
was gone, that we had ever
talked to ...We had some
pretty major customers that
got left out—it wasn’t a
pretty ending.”
He said that one day,
there simply wasn’t any
product being distributed,
as he noted some key
Oregon contracts, includ-
ing with Sysco, Alpine
Food Service, and Izzy’s
Pizza—a big customer.
“All of that’s gone. We
haven’t sold a case of
product, probably since
the middle of January ...
They pretty much just shut
the thing down, as far as I
could tell ... Everybody got
laid off, and they just kind
of ceased to exist ...We
represented them for a re-
ally long time (from right
after Johnson took over
the company) ... It was the
oddest thing, I think, I’ve
been involved with, ever ...
There was no explanation,
no contact ...” Lance said.
He said that there were
customers, but, with distri-
bution halted, there was no
product to sell to them. He
said he had the impression
the Tasty Bake employees
were surprised, as well, at
the sudden cease in opera-
tion, and the recent layoffs.
“I think Pendleton Flour
Mills (merged with Cereal
Food Processors, Inc., and
Milner Milling in May
2014, to form Grain Craft)
was one of their big sup-
pliers for raw material. I
think WinCo (the WinCo
contract loss) was one of
those Murphy’s Law kind
of things ... Everybody
(the clientele) has found
solutions (for supply),
that I know of ...” Lance
said, noting that Spokane,
Washington-based Riz-
zuto Foods is one of the
replacements for Tasty
Bake’s services.
Lindley noted that Tasty
Bake’s sole distribution in
Idaho was to WinCo (short
for Winning Company, an
employee-created name),
and, he said, “I haven’t
even really received some
official communication
from Tasty Bake (regard-
ing the cease in distribu-
tion, etc.). Just the next
thing I know, they’re
closing down. They’re not
taking orders ...”
He said the loss of
employees, including in
2013, was a significant hit
to a community like Baker
City. Lindley said, “There
are not a lot of people who
go out of business in our
industry, you know, to
just shutter the doors like
that. It was a bit strange...”
He said his guess is that
WinCo probably acquired
product distribution from
Rizzuto Foods, or Glad-
stone, Oregon-based
Roadrunner Home Bake,
Inc., after terminating the
contract with Tasty Bake.
Portillo said, “The new
owners came in, acquired
the company from the pre-
vious owner, and stopped
shipping to anybody...
They just stopped ... And,
why they did that, I have
no idea. There are some
companies, you know,
they do things for different
reasons. I know they were
in the acquisition mode of
purchasing many compa-
nies in Oregon...”
SEE TASTY BAKE
PAGE 10
Steer Calves
300-400# Bulk 203.00 - 215.00 Top 220.50
400-500# Bulk 172.00 - 203.00 Top 209.00
500-600# Bulk 171.00 - 197.00 Top 205.00
Heifer Calves
300-400# Bulk 161.00 - 188.50 Top 196.00
400-500# Bulk 161.00 - 180.00 Top 181.50
500-600# Bulk 153.00 - 173.00 Top 173.50
600-700#
700-800#
800-900#
900-1,000#
Yearling Steers
Bulk 157.00 - 173.00 Top 177.00
Bulk 132.00 - 143.00 Top 146.00
Bulk 131.00 - 143.00 Top 144.00
Bulk 128.00 - 137.00 Top 139.00
Yearling Heifers
600-700# Bulk 139.00 - 156.50 Top 157.50
700-800# Bulk 129.00 - 142.50 Top 143.50
800-900# Bulk 124.00 - 136.00 Top 137.00
900-1,000# Bulk N/A Top N/A
Thin Shelly Cows 52.00 - 69.00
Butcher Cows 71.00 - 79.00
Butcher Bulls 71.00 - 88.00
Stock Cows Yng. 1600.00 - 1875.00
Younger Hfrts. N/A
Stock Cows Older. - 900.00 - 1200.00
ProducersLivestock.com
541-473-3136
— Log Price Report —
Price per 1,000 board feet: Northeast Oregon
Currently the local log market is flooded with
fire salvage logs. The log buyer for Malheur
Lumber Co. stated they have all the logs they
need under contract and are not accepting any
new purchases. BCC/LLC of La Grande has
receive so many burned fire salvage logs they
are no longer accepting logs at the La Grande
log yard. Any additional pine logs have to be
delivered to the Elgin Log yard cut in plywood
lengths and to a 8 inch top. For these pine
logs cut in plywood lengths, BCC is offering
$280.00/mbf. They are also paying $410.00/
mbf for Doug Fir & Western Larch. For White
Fir they are offing $310.00/mbf. At the Pilot
Rock Saw Mill BCC is offing $360.00/mbf for a
12 to 15 inch top, for 16 to 19 inch top $400.00/
mbf & offing $425.00/mbf for 20 inch plus top
Courtesy of Arvid Andersen,
Andersen Forestry Consulting
— Precious Metals Report —
Price per ounce, USD
Gold: $1,231.30
Silver: $15.11
Platinum: $952.10
Palladium: $547.20
Bloomberg.com
— Ag Commodities —
Corn: $357.00/bu/USD
Wheat: $472.50/bu/USD
Soybeans: $904.25/bu/USD
Oats: $185.00 bu/USD
Rough Rice: $9.79/cwt/USD
Canola: $480.20 CAD/mwt
Live Cattle: $120.75/lb./USD
Feeder Cattle: $150.20/lb./USD
Lean Hogs: $79.00/lb./USD
Bloomberg.com