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Warren Distributing notified the state it plans to layoff 128 workers by the end of April.

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WINSLOW TWP. -- The Atlantic County beer distributor that is buying out a competitor in the South Jersey market plans to rehire many of the same employees who are set to be laid off in the end of April.

Mark Kramer, president of Kramer Beverage in nearby Hammonton, said he has an agreement to completely buy out Hub City Distribution, a part of the Warren Distributing Co. that is located in Lawrenceville. That means workers there will keep their jobs, at least for now.

However, the agreement to takeover the business of Warren Distributing South, the part of the company that distributes to South Jersey out of a Blue Anchor facility, is more complicated.

Kramer said he has an agreement to purchase all the distributing contracts of Warren Distributing South, meaning the latter company will go out of business when the deal goes through. Warren Distributing reported to the state that it would layoff all 128 employees by the end of April.

However, Kramer said he will need to hire many new employees to handle those new contracts, and he has committed to interview every interested employee at Warren Distributing South to see if he can hire them to do similar work with his company.

"We're going to need a lot of people. This adds a lot to our company and we're excited to meet with them," he said Wednesday.

He declined to estimate how many new hires he plans to make, or to name the price for either deal.

#MeetTheTeam NAME - Mark Kramer (pictured right) JOB TITLE - President FAVORITE BEER STYLE - American Pale Ale FUN FACT... Posted by Kramer Beverage on Monday, October 3, 2016

Kramer Beverage, started in 1924, employs 150 people and distributes mostly beer, plus several other alcoholic beverages and Red Bull. Kramer said the company already delivers beer to South Jersey, but the deal to buy Hub City means it will be distributing to Northern Burlington County and Mercer County.

Kramer said Warren Distributing South's non-union employees who have submitted applications are being interviewed first, then the union members.

Non-union workers at Warren include office staff and salespeople, according to Marcus King, president of Teamsters Local 331, which handles the union contracts for employees at both Warren Distributing South and Kramer Beverage.

Messages left for the manager of Warren Distributing South and Frank "Chip" Banko III, the owner of the statewide operation, were not returned. He maintains ownership of Warren Distributing North, based in Flanders.

King said the union workers' pay and benefits are similar at both businesses, so he expects most employees will want to go work for Kramer Beverage.

"Kramer needs experienced workers," he said, and Warren Distributing workers are the ones who were driving the routes to deliver the beer that Kramer will now be delivering.

Kramer said the deal to take over ownership of Hub City Distributing is also planned for the end of April. The purchase agreements have to be approved by the state and agreed to by all the breweries.

In that case, he said he doesn't plan any layoffs in the immediate future but will be "looking for efficiencies." For example, it may make sense to have one human payroll department to handle work at both the Hammonton and Lawrenceville locations, he said.

The big contract Kramer got in the deal is distribution rights for Miller beverages. Kramer Beverage has owned the rights to distribute Coors since 1987, he said, and bringing both contracts in house makes the most sense since the two brands merged into MillerCoors in 2008.

Kramer said that those big brands are still king in the beer distributing business, but smaller breweries are gaining ground.

"It's definitely changed with craft beers, because that's where the excitement is in the industry -- craft beer and imports are where the growth is," he said.

More smaller brewing companies means more contracts, which is more complex for distributors, but Kramer said any excitement about buying beer is good for the industry.

Small craft brewers are allowed to distribute their beer themselves, he said, but the impact on beer distributing companies is not huge.

Rebecca Everett may be reached at reverett@njadvancemedia.com. Follow her on Twitter @rebeccajeverett. Find NJ.com on Facebook.