Tho deal pace has remained sluggish overall in 2010 (see last issue) a flurry of deals announced in last mo, many with interesting twists. Tho AB can't close on its acquisition of 70% of City Bev in Ill to make that a branch, AB will add to its branches in NJ. Has deal to purchase 3-mil-case Jersey Eagle from Klopcic family. Deal announced less than 1 mo after NJ trial over FMV concluded and expected to close by end of Oct. Klopcics will still sell about 12 mil cases in Mich; reportedly look to get bigger again there or elsewhere. Northern NJ branch will be contiguous to AB's NYC branch. Elsewhere, a 5th generation Coke bottler in Sioux City, Ia, Chesterman Co has deal to buy 2 smaller contiguous AB distribs, Whittenburg Dist in Spencer and Kabrick Dist in Britt, totaling 1.6 mil cases, pending supplier approval. Not too many Coke bottlers have become beer distribs. This is Chesterman's first foray into beer biz.
Also notable that largest distrib Reyes Holdings back in action, buying beer distribs, after hiatus since late 08. Its Premium Dist arm in Va/DC/Md has deal to buy 2 Va distribs, Fredericksbug and Freeman, totaling about 3.5 mil cases. Giant Reyes Holdings beer distribution biz at over 80 mil cases and about $1.5 bil in revs (it's $13 bil in all). Premium about 21 mil cases, in Va/DC/Md, including about 2.5 mil cases as broker in Montgomery county. Deals scheduled to close in early Oct. Interesting too because of ongoing friction between Reyes and MC at corporate level, largely related to MC contract.
Three other MC consolidations, 2 vertical and 1 contiguous. In Reno, Coors distrib New West has already acquired 900,000 cases of Miller from Luce & Son and has deal to acquire another 400,000 cases of beer, pending supplier approval. New West will be about 3 mil cases. Most of wine will go to Wirtz's Vegas operation. Vegas remains one of biggest unconsolidated MC mkts (Others include NY, Philly, Austin, Minny). Also, United Bev of NEPA in Pittston, Pa sold approx 1.5 mil cases to 3 neighbors. LT Verrastro (Coors, others) picked up near 1 mil cases of Miller and imports; Northeast Eagle (AB) got approx 400,000 cases of Yuengling/Rolling Rock and Banko got remaining Pabst, others volume. Finally, a contiguous consolidation as MC distrib AL George of Binghamton, NY going west to acquire near 4-mil-case Onondaga (unconsolidated Coors, but NAB is its largest supplier). AL George will be about 7 mil cases. Rumblings of more consolidation in NY.
Deal Flurry: AB Adds Branch in NJ; Ia Coke Bottler; Reyes M&A in Va; MC in NY/Nev/Pa
Publishing Info
- Newsletter: Beer Marketer's INSIGHTS
- Published: 09/15/2010
- Volume: 41
- Issue #: 17