Western Sugar Cooperative

Western Sugar Cooperative

Company type	Agricultural cooperative
Industry	Agriculture, Sugar production
Founded	1901
Headquarters	Denver , United States
Area served	Colorado, Nebraska, Wyoming, Montana
Products	Sugar

The Western Sugar Cooperative is an American agricultural cooperative owned by growers, tracing its origins back to the Great Western Sugar Company, which was established in 1901.

Great Western Sugar Company History

Founded in February 1901 by a group of investors including Charles Boettcher and John F. Campion, the Great Western Sugar Company acquired the operational agreement for a plant in Loveland, Colorado, originally held by Colorado Sugar Manufacturing Company. With backing from notable financiers such as Eben Smith and William Jackson Palmer, the company launched its inaugural sugar beet processing facility in November of that year. Early production difficulties prompted the recruitment of industry specialist Mark Austin to enhance operations.

In 1902, Great Western broadened its reach by establishing the Great Western Railway subsidiary, which expanded its distribution network. By 1976, this railway operated 58 miles of standard gauge track.

After engaging in price conflicts with the Sugar Trust between 1900 and 1902, the Trust gained control over Great Western by 1904, instituting price regulations and organizing regional beet-growing districts to reduce competition. By 1926, Great Western managed 13 out of Colorado’s 17 sugar factories, with Colorado leading the nation in beet sugar production.

To maximize beet yields, Great Western strategically enlisted German-Russian farmers and immigrant laborers with extensive experience. Contractual disputes in the early 1900s led to the adoption of profit-sharing agreements with growers, dividing sugar sale profits equally—a practice that became standard industry-wide.

The Great Depression severely reduced demand and prices, prompting lobbying efforts that secured inclusion under the Agricultural Adjustment Act through the Jones–Costigan amendment, which restricted imports and stabilized pricing. Production challenges from the Dust Bowl were alleviated by initiatives such as the Colorado-Big Thompson Project.

World War II and Postwar Developments

Demand surged during World War II; however, labor shortages accelerated mechanization and improvements in seed quality. Despite price controls under the AAA, Great Western innovated by employing labor from Japanese American internment camps, significantly supporting harvests between 1942 and 1945. In the postwar period, labor recruitment expanded through relocation programs.

Byproducts like molasses found new uses in livestock feed and industrial fermentation processes, leading to monosodium glutamate (MSG) production at a Fort Collins facility starting in the 1950s.

Leadership under William M. White Jr.

In 1965, William M. White Jr., drawing on family connections and experience at Allen & Company, orchestrated a takeover of Great Western by acquiring Colorado Milling and Elevator Company. The combined entity was renamed Great Western United Corporation with White serving as president. Despite diversification efforts into land development and acquisitions such as Emerald Christmas Tree Company, financial difficulties persisted through the late 1960s.

White's tenure faced criticism following dividend suspensions in 1971 and he was eventually replaced after proxy battles led by major shareholder Nathan Mendelsohn. The company’s stock value declined sharply amid investigations into sugar price-fixing involving several producers in the early 1970s.

Hunt Brothers Takeover and Expansion

In late 1974, Hunt International Resources launched a hostile takeover of Great Western United Corporation, securing majority ownership by 1976 and relocating executive offices to Dallas while retaining Denver operations. The Hunts diversified into commodities trading as well as oil and gas exploration.

Although sugar prices rose sharply following indictments for price fixing, market adjustments led to industry demands for subsidies by 1977.

In 1975, GWU expanded into cane sugar refining and international raw cane procurement by acquiring Godchaux-Henderson Sugar Company in Louisiana. This acquisition resulted in legal disputes with Southern Industries over financial arrangements.

Farmer cooperatives like the Rocky Mountain Beet Growers Association attempted to acquire Great Western's sugar division but were unsuccessful due to legal challenges throughout the late 1970s.

Restructuring and Bankruptcy

By the mid-1980s, Great Western divested several units including Godchaux-Henderson Sugar and Northern Ohio Sugar Company amid ongoing financial troubles. Holly Sugar’s attempts to acquire assets failed in 1984. Confronted with escalating debts within the Hunt portfolio, Great Western filed for Chapter 11 bankruptcy protection in March 1985. Key assets were sold to Savannah Foods & Industries.

That same year Tate & Lyle established the Western Sugar Company, purchasing six factories including those at Greeley and Fort Morgan; operations at Loveland ceased. By 2002, Western Sugar continued processing at Greeley and Fort Morgan plants.

In 2002, more than one thousand sugar beet farmers acquired Western Sugar from Tate & Lyle, forming the Rocky Mountain Sugar Growers Co-operative, which subsequently merged into Western Sugar Cooperative. The cooperative is based in Denver and operates five factories across Colorado, Nebraska, Wyoming, and Montana.

Production at the Torrington facility ended in May 2015 with plans to maintain it for storage purposes; although workforce reductions were anticipated, full operations reportedly continued as of early 2018.[citation needed]

Subsidiaries (circa 1976)

• The Great Western Sugar Company (Delaware)
  • Bighorn Limestone Company (Montana)
  • Godchaux-Henderson Sugar Inc. (Louisiana)
  • Northern Ohio Sugar Company (Ohio)
  • The Great Western Railway Company (Colorado)
  • The Great Western Sugar Export Company (Colorado)
• The Great Western Sugar Investment Company (Delaware)

Leadership

From 1936 until 1967, Frank A. Kemp held the position of CEO and subsequently served as chairman of the board from 1966 until his passing in 1971. Interestingly, his estate, valued at $534,000, did not include any shares of Great Western stock.

In 1968, William Mathews White Jr., son of the well-known Colorado businessman William M. White, assumed the presidency at the young age of 28 after having led Colorado Milling since 1965. White Jr. pursued a strategic investment in Gorton’s Fish in 1967 by acquiring a 30% stake; however, he divested this holding within six months. A Yale alumnus and former vice president at Allen & Company, his approach to leadership sparked internal disagreements that culminated in his resignation in 1971. After stepping down, he sold nearly half of his shares to Colorado and Western Properties, owned by Neal and Linden Blue, who subsequently joined Great Western’s board.

By November 1972, Robert G. Everett had taken over as president and CEO, ushering in a new era for the company’s executive management.

Sugar beet factories

Due to the rapid decline in sugar content of sugar beets post-harvest, it was essential to operate numerous processing plants. The principal factories, arranged by their acquisition timeline, are as follows:

• Loveland, Colorado, established in 1901; production capacity increased from (1919) to (1976); ceased operations in 1985.
• Greeley, Colorado, founded in 1902 by the Greeley Sugar Company; acquired by Sugar Trust the same year and merged into Great Western by 1905; capacity expanded from (1919) to (1976).
• Longmont, Colorado, constructed in 1903 and incorporated into Great Western in 1905; capacity rose from (1919) to (1976); also included research farms.
• Fort Collins, Colorado, built in 1903 and acquired by Great Western in 1905; capacity was (1919); shut down in 1960; notable for housing the Steffen molasses recovery facility and MSG extraction operations.
• Eaton, Colorado, established in 1902 and part of Great Western since 1905; capacity grew from (1919) to (1976); closed in 1976 due to proximity of other plants.
• Windsor, Colorado, built in 1903 and acquired by Great Western in 1905; capacity was (1919); closed in 1968 and later utilized by Eastman Kodak.
• Sterling, Colorado, locally constructed in 1905 and acquired by Great Western a year later; capacity increased from (1919) to (1976); closed operations in 1985.
• Fort Morgan, Colorado, built by Great Western in 1906; capacity expanded from (1919) to (1976).
• Brush, Colorado, established by Great Western in 1906; capacity recorded as (1919).
• Billings, Montana, acquired in 1906; initially operated independently due to antitrust considerations; production capacity grew from (1919) to (1976).
• Scottsbluff, Nebraska, constructed in 1910 through relocation of an earlier factory; capacity rose from (1919) to (1976).
• Gering, Nebraska, built in 1916; capacity increased from to short tons by 1976.
• Lovell, Wyoming, established in 1916; production capacity rose from to short tons by 1976.
• Bayard, Nebraska, built in 1917; capacity grew from to short tons by 1976.
• Brighton, Colorado, constructed in 1917; capacity increased from to short tons by 1976; closed down in 1978.
• Mitchell, Nebraska, established in 1920 following farmers’ requests; capacity increased from to short tons by 1976.
• Ovid, Colorado, built in 1924; had a capacity of short tons as of 1976; ceased operations in 1985.
• Johnstown, Colorado, opened as a sugar factory in 1920 and converted into a molasses refinery by 1926 with MSG processing added starting in 1954.
• Fort Lupton, Colorado, constructed by Industrial Sugar Company in 1919 and acquired by Great Western in 1926; closed its doors in 1948.
• Lyman, Nebraska, established in 1926 with a reported capacity of short tons by the year1935.
• Goodland, Kansas, known as Frank A. Kemp Sugar Factory built for $14 million in1968; production capacity grew from to short tons by1976.

Additional notable facilities include:

• Fremont, Ohio, founded around1900 with a substantial production capability of short tons by1976; plans were made for expansion into sugar cane processing during the late1970s.
• Missoula, Montana, briefly operated following its construction in1916 with a capacity of ; later replaced due to operational disagreements.
• Findlay, Ohio, established in1911 with a production capability of short tons during the mid-1970s.
• Possibly an additional plant located within Montreal, Canada.

Together these factories constituted the core infrastructure for the company’s sugar manufacturing operations across several states and played a pivotal role in expanding its market presence and business development within the sugar industry.

Other Operations

• Lime quarry at Horse Creek, Wyoming, established in 1908.
• Lime quarry located in Ingleside, Colorado, also started in 1908.
• Experimental station and agricultural research farms situated in Fort Collins, Colorado.

Great Western Food

Founded in 1884 by J. Allen Smith in Knoxville, Tennessee, the White Lily flour mill was initially under the ownership of Colorado Milling & Elevator before its integration into Great Western Foods (GWF), a division of Great Western United, in 1968. Headquartered in Knoxville, by 1972 GWF controlled approximately 6% of the flour milling capacity within the Southeastern United States and produced the Three Rivers cornmeal brand.

In 1972, Federal Company along with its subsidiary Dixie Portland Flour Mills acquired GWF. Although the Justice Department contested this acquisition citing antitrust concerns, the lawsuit was unsuccessful due to market fragmentation and declining sales trends. The plant underwent modernization under Federal/Dixie-Portland in 1975. By 1988, White Lily had become the fourth most favored flour brand nationwide.

Starting from 1989, ownership of the White Lily mill transitioned through several companies including Holly Farms, Tyson Foods, Archer-Daniels-Midland, Windmill Holdings, and ultimately C.H. Guenther & Son Inc.’s Pioneer Flour Mills in 1995. Under Guenther’s management, the facility operated as a copacker for The J.M. Smucker Company, which purchased the White Lily brand in 2006. The mill ceased operations in 2008. In 2011, developer David Dewhirst acquired the property with intentions to redevelop part of it into residential lofts.

Shakey's Pizza

In early 1967, through Colorado Milling, White obtained a 50% stake in Shakey’s Pizza by purchasing Sherwood "Shakey" Johnson’s share. Later that year, Great Western acquired the remaining interest. By 1971, Shakey's operated around 400 outlets (42 company-owned), expanding to approximately 530 locations (89 company-owned) by 1976. Franchisees resolved a lawsuit filed in 1970 against Great Western concerning compulsory ingredient purchases. The corporate headquarters was based in Eagleton, Colorado. Joseph F. Dolan held the position of president and CEO until his departure in February 1974.

In 1974, Hunt International Resources took over Great Western along with Shakey’s Pizza. Subsequently, investors Gary Brown and Jay Halverson purchased it in 1984 before selling to Singapore-based Inno-Pacific Holdings—which acquired foreign operations in 1988 and domestic outlets in 1989.

Great Western Restaurant Company

The Prime Time Restaurants steakhouse chain was initiated by Great Western in 1969 and later rebranded as The Great Western Restaurant Company during the 1970s. Incorporated under Delaware law, this entity had become inactive by 1976.

Great Western Cities

Mendelsohn spearheaded the development of California City, California beginning in 1958, followed by Colorado City, Colorado in 1962 and Cochiti City, New Mexico in 1969 through a 99-year lease agreement with the Cochiti tribe.

Sales of land parcels at California City encountered obstacles because mineral rights were retained by the state rather than by developers—this limitation prevented clear title conveyance and exposed surface land to potential mining activities. An accord with the California Department of Real Estate effectively stopped sales involving these encumbered lands. In 1975, Tom Maney held roles as vice-president and general counsel for Great Western Cities (GWC).

Mendelsohn maintained ownership of California City Development Company until its merger into GWU in 1969; after joining GWU’s board post-merger, he was dismissed by White in 1970 amid shareholder disagreements. Sales at Great Western Cities declined sharply from nearly $25 million in 1970 to $13 million by 1971 amid federal and state investigations.

Legal disputes included a lawsuit filed by the National Indian Youth Council in 1971 concerning lease terms and water rights issues; GWU responded by acquiring alternative water rights while suspending use of Cochiti water resources.

Great Western Cities completed major hospitality projects including the California City Inn—a facility featuring 105 rooms along with restaurants and convention spaces—in June 1971; additionally, The Greenhorn Inn motel offering 60 rooms was developed in Colorado City.

By 1971, Tom Watson served as CEO of GWC; Norman Gross assumed roles as executive vice president and general manager by late 1972.

Regulatory scrutiny following a Federal Trade Commission settlement in 1972 and provisions under the Interstate Land Sales Full Disclosure Act imposed enhanced disclosure obligations and required significant infrastructure investments. A settlement reached in 1975 mandated $4 million be refunded to customers alongside a $16 million commitment toward infrastructure improvements across three project sites.

In March 1973, GWC resolved title complications related to mineral rights with California authorities through an agreement that permitted surface entry rights for certain depths on approximately land while transferring other sections for conservation and state use.

Financial performance showed variable revenues: $20.2 million (1973), $18.5 million (1974), $15.8 million (1975), and $14 million (1976). Despite losses throughout much of the mid-1970s period, profitability returned with a $3.2 million gain reported by 1976. Sales commissions ranged between 6% and 15% for salaried employees and could reach up to 50% for independent sales representatives; commissions were heavily front-loaded.

GWU recorded a $4.3 million write-down from GWC operations during fiscal year 1975 and allocated $4 million toward FTC settlement reserves—signaling intentions to divest from GWC amid negative publicity impacting land development efforts. The main sales office was located at a site within North Hollywood, California.

Subsidiaries under GWC as of 1976 included:

• California City Development Company
  • GWU Properties, Inc.
  • Boron Valley Water Development Company (inactive)
  • California City Realty Company
  • Western Cities Hotels (Delaware)
• Colorado City Development Company
  • Colorado City Realty Company
  • Great Western Cities Realty Company
• Great Western Cities, Inc. of New Mexico
  • Great Western Cities Realty (California; inactive)

By 1980, Charles W. Terrell had assumed leadership as CEO of Great Western Cities.

Western Investment Company

Following the Hunt brothers' acquisition in 1974, they founded the Western Investment Company, a division specializing in commodity futures and precious metals, operating out of the First National office in Dallas. In fiscal year 1975, trading in commodity futures yielded $17 million in profits before taxes.

In 1977, Hunt expanded their holdings by purchasing the Sunshine Mine, a prominent silver mine located in Idaho, through Great Western. The associated subsidiaries in 1976 included:

• Western Bullion Corporation (Delaware)
• Western Investment Company (Delaware)

Impel Corporation

After the 1974 acquisition, the Hunt brothers broadened their ventures into oil and gas exploration with Impel Corporation, which was renamed from Great Western Energy Corporation in 1975 and based in Denver. The sugar business was notably affected by rising coal and natural gas prices, particularly following the 1973 oil crisis. The subsidiaries incorporated in Delaware during 1976 were:

• Impel Corporation
  • Western Energy Coal Company (dormant)
  • Western Energy Land Company (dormant)
  • Impel New Zealand, Ltd.
  • Knott Land Company (dormant)
  • Energy Equipment Company (dormant)
  • Carver Tipple Corporation (dormant)
  • Oakdale Tipple Corporation (dormant)

See also

• Fanjul family

External links

• Western Sugar Cooperative website
• Guide to the Records of the Great Western Sugar Company
• Great Western graphics and packaging
• The Great Western Sugar Refinery in Ovid, Colorado – Gone – photographic comparison of the demolished facility