PARKERSBURG - The state's only potato chip manufacturer, Mister Bee Potato Chip Co., reportedly is facing production and product flow problems.
J.R. Carpenter, owner/operator of the Crystal Cafe, said his supply and shipments of Mister Bee chips have been sporadic for about two months.
"It has been poor service for the last few months and sporadic delivery." he said.
Carpenter was one of many to receive a letter from Mister Bee company officials, detailing the problems.
Earlier this month, Doug Klein, president, sent a letter to customers outlining Mister Bee's problems, acknowledging "inconsistency in the company's production and product flow." In an email to The News and Sentinel, Klein wrote:
"We are working through some issues with our distribution currently. As you know we are in a pending suit so I can't discuss anything further on this matter right now. We are working as fast as we can to put this matter behind us so we can continue manufacturing and selling our products to all our retailers. We are not planning to close any time soon. Beyond that I can't discuss anything further at this time."
In his letter to customers, a copy of which was obtained by The News and Sentinel, Klein cited the loss of its distribution rights to both Utz and Snyders of Hanover potato chips, which resulted in the loss of more than $2 million in sales revenue.
"Neither of these were the single fault of anybody; however, it caused a financial strain on the business," he stated.
Klein also stated one of the company's primary supplier of potatoes filed a Perishable Agricultural Commodities Act (PACA) suit last month.
In a suit filed in U.S. District Court in Parkersburg last month, E.K. Bare & Sons Inc., a supplier of chipping potatoes, maintained Mister Bee owes more than $215,000 from contract work for products delivered between March and August of this year. The suit alleges Mister Bee attempted to make partial payment to Bare & Sons with a check for $8,500, but it bounced.
Doug Klein, Alan Klein and Andrew Klein were listed as plaintiffs in the suit.
"I guarantee you this is a minor setback and no one will (lose) their jobs and we will begin full steam ahead later this week. I apologize for any inconvenience this has caused, but I was hoping to avoid all this, but I ran out of time," Klein stated in his letter, referring to the PACA suit.
The suit is the second legal hurdle the company has faced in less than a year.
In November 2010, Utz Quality Foods, based in Hanover, Pa., filed a lawsuit in district court against Mister Bee alleging it owed $677,623 for Utz products.
According to the complaint, in November 2007 the two companies entered into an agreement in which Mister Bee Potato Chip agreed to distribute Utz products in West Virginia and Ohio.
Mister Bee was founded in 1951 by Leo Klein. It has remained a family-owned operation, now run by Doug Klein, Leo Klein's grandson.
