In 1910, the bottling company  was initiated by William Smith. The initial bottling process involved hand-washing bottles, which were then filled and capped using a foot-powered machine. The delivery process was facilitated through a manually pulled cart. As William's sons grew older, they joined the family business and eventually took over the operations of the "Soda Works", which subsequently became increasingly mechanized.

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Smith Beverages was operational until 1955 when Arthur Snydal acquired it in Port Angeles, Washington. Following the acquisition, the franchise territory was transferred to Peninsula Bottling, which also acquired the soft drinks franchise related equipment used for washing, filling, and capping. The franchise territory encompassed all of the Clallam & Jefferson Counties and the northern half of the Olympic Peninsula, with Pepsi-Cola & 7 Up being the primary brands. The direct store delivery model was and continues to be utilized for all brands carried, with no third-party delivery agents involved.

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The plant underwent multiple relocations before finally settling at its current location, which is the new warehouse located at 311 S Valley Street, Port Angeles, WA. However, bottling operations ceased in 1975, after the establishment of a bottling and canning cooperative known as Columbia Beverage Company in Tumwater, Washington. This cooperative was formed by nine Pepsi-Cola bottlers from Washington and Idaho, each contributing equal shares. Consequently, the bottling line at Peninsula Bottling was disassembled and sold. Despite this setback, the company continued to expand, and a warehouse addition was built in the late 1970s.

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Jeff and Debbie Hinds became a part of the business, which remained under family owner and operation to date. The vending segment of the business was later divested in 2009 to a sister company, Snow Valley Distributing, owned by Jeff and Debbie's son, Harry Hinds.

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Harry Hinds became a part of the company in 2009, and he currently works alongside his wife, Preeti Hinds, at Snow Valley Distributing. As of 2023, the business has been transferred to Harry and Preeti Hinds, who now possess full ownership of Peninsula Bottling.