Wholesaler Consolidation: 2 Deals on 2 Coasts

There’s a pair of wholesaler deals in the works involving the distribution rights to a number of major brands, Brewbound has learned.

Let’s start out west, where Nor-Cal Beverage Company — a major co-packer of non-alcoholic energy drinks, teas and waters — has agreed to sell its Loomis, Calif.-based beer division to Markstein Beverage of Sacramento.

The transaction is expected to close by the end of the year and is still pending supplier approval.

“Nor-Cal Beverage Company is a great operation serving many great counties,” Markstein president Hayden Markstein said in a press statement. “We anticipate a smooth transition with our existing team members, the Nor Cal Beverage team and our new customers.”

The acquisition expands Markstein’s beer distribution footprint to include El Dorado, Placer and Nevada counties as well as some areas of Alpine and Sierra counties. The company currently operates in Sacramento, Solano, Yuba, Sutter and Napa counties as well as parts of Yolo County counties.

The company distributes a variety of products from Anheuser-Busch InBev, Constellation Beer, Craft Brew Alliance, and Sierra Nevada, among others. Per the agreement, Nor-Cal Beverage will sell its rights to those brands, as well as a handful of other craft offerings, to Markstein. Additionally, Markstein will acquire about 125 current Nor-Cal Beverage beer division employees as part of the transaction. Specific financial terms were not disclosed.

Meanwhile, in Virginia, Reyes Beverage Group (via its Chesbay Distributing operation) has agreed to acquire all of the assets of Kozak Beverages Inc.

Kozak, which delivered 1.6 million cases of beer in 2013, currently distributes beers from MillerCoors, Constellation Brands, Diageo-Guinness USA, Heineken USA, Boston Beer, Anchor Brewing and handful of craft brewers.

The company will operate as part of Chesbay Distributing, expanding the company’s operations to over 7 million cases of beer sold across southeast Virginia.

“We are proud to expand our beer distribution business in the Commonwealth of Virginia where we have deep roots,” Reyes CEO Ray Guerin said in a press release.

A purchase price was not disclosed.