As Category Lines Blur, Alcohol Distributors Build Total Beverage Portfolios
The beverage alcohol distribution tier is experiencing an historic reset in the wake of Republic National Distributing Company (RNDC)—previously the No.-2 wine and spirits wholesaler—divesting its business and filing for bankruptcy. “As we watch RNDC withdraw from a number of states and transact, it was the larger beer network that went in almost to be a safety net and help those products not miss a beat and get to market,” says Craig Purser, president and CEO, National Beer Wholesalers Association.
Beer distributors acquiring markets from RNDC include Reyes Beverage Group (RBG), Quality Brands, Columbia Distributing, Morales Beverage Group, and Manhattan Beer & Beverage. Chicago, Illinois-based Reyes—the largest U.S. beer wholesaler—acquired a large share of RNDC’s business in a deal for 11 markets accounting for more than $5 billion in revenues last year. Reyes Beverage Group Spirits and Wine is now the No.-3 wine and spirits wholesaler in the U.S. after Southern Glazer’s and Breakthru.
“Through acquisition and expansion, we’ve broadened our footprint, adding new markets, talent, capabilities, and supplier partnerships to our business,” says RBG CEO Tom Day, who will be among the speakers at this Thursday’s 50th Annual Impact Marketing Seminar in New York. “We’re increasing category fluency across the organization to deliver on our total beverage strategy with elite execution, and as we invest in the tools, technology, infrastructure, and people that move our business forward, we’re confident our biggest opportunities still lie ahead.”
Likewise, wine and spirits wholesalers are becoming total beverage distribution companies. In July, Southern Glazer’s—the No.-1 wine and spirits wholesaler nationwide—announced “Wine & Spirits” is being dropped from its name in early 2027. “That was not a cosmetic exercise. We’ve been a wine and spirits company by name and a beverage company by ambition for some time,” says Mark Chaplin, president, commercial sales, Southern Glazer’s. “Beer, RTDs, and NAs are precisely why we did it. We aren’t becoming a beer company. We’ve been one and are backing it up with meaningful acquisitions. Our commitment to our core wine and spirits business remains the same.” Southern Glazer’s beer revenues are in excess of $1 billion annually.
Southern Glazer’s agreed last year to acquire Anheuser Busch’s New York City distribution operation and set up Southern Glazer’s Beverage Company of New York across Manhattan, Queens, Staten Island, and the Bronx. This year it followed with acquisitions of beer wholesalers Clare Rose on Long Island, New York and Eagle Rock Distributing Company in Colorado.
“The most significant investment we’ve made is bringing the great technology we’ve developed and implemented in our legacy business to team members of our newly acquired operations,” Chaplin says. “The consolidation of our frontline sales tools into a single digital hub will enable us to leverage this best-in-market technology across our broader business.”
Meanwhile, last month Martignetti Companies agreed to acquire fellow Massachusetts-based distributor Girardi for an undisclosed sum. A fourth-generation family-owned player in central and western Massachusetts, Girardi handles the Anheuser-Busch portfolio along with other beer, wine, and spirits offerings. The planned purchase will further Martignetti’s goal of providing New England customers with a total beverage alcohol offering across wine, beer, spirits, and RTDs, according to the company. Expected to close this fall, the deal marks the third expansion in Massachusetts beer distribution for Martignetti in recent years, also including its plays for Quality Beverage and the AB One Boston operation in 2024.
Further back, Breakthru Beverage expanded in beer with its 2022 deal for J.J. Taylor in the Minnesota market, bolstering its total beverage alcohol footprint. Breakthru had initially planned to acquire RNDC’s interests in Kentucky and Indiana this year, but backed away from the proposed deal in August. Subsequently, Keg 1 River City signed a purchase agreement for the Kentucky assets, while Morales Beverage Group signed of letter of intent to acquire the Indiana business.—Kevin Barry
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Anheuser-Busch, Breakthru, Girardi, Keg 1, Martignetti Companies, Morales Beverage Group, National Beer Wholesalers, Reyes Beverage Group, RNDC, Southern Glazer’s
