As the distribution tier continues to shrink, what must brewers and bev-alc brands do to protect their routes to market? ArentFox Schiff partner Nichole Shustack and senior associate Isabelle Cunningham joined the Brewbound Podcast to discuss how suppliers can navigate the turbulence that comes with wholesaler consolidation.
Instability across the middle tier shows no signs of letting up. Breakthru Beverage Group announced a restructuring this week that will result in about 500 jobs cut. Last fall, Republic National Distributing Company (RNDC) abandoned its California business after several major spirits suppliers terminated it.
Earlier in 2025, the craft distribution business in Southern California got a seismic shock when Hand Family Companies acquired Stone Distributing and Classic Beverage to form Sunset Distributing. An aftershock from that deal reverberated when Sunset acquired boutique craft house Scout Distributing in June 2025.
These deals and countless others like them can represent a loosening of otherwise tight contracts between suppliers and distributors.
“When you’re notified of a transaction, you should look at that as an opportunity,” Shustack said. “It’s an opportunity to evaluate the market. It’s an opportunity to maybe get a new contract in place. It’s an opportunity to maybe get some additional marketing commitments.
“You have leverage and there’s not a lot of time in a supplier-wholesaler relationship where you have leverage,” she continued. “This is one of the few times that you do. You want to make sure that you’re thinking about it early.”
Shustack and Cunningham also share updates on the uncertain future of the intoxicating hemp industry, which is slated for prohibition in November 2026. Congress is weighing several bills to delay the ban or establish a regulatory framework. The former seems more likely than the latter – especially with midterm elections on the horizon, Cunningham said.
“I think eventually someday we’ll end up with a regulatory framework for it just because of the demand and the money,” she said. “Coming into a midterm election year, I do not see anyone taking this up in earnest, but I don’t see them letting the ban go into effect, either.”
Before the interview, Justin and Zoe discuss a bevy of beer news, including the formation of the Oregon Beverage Alliance, year-end shipments data from the Beer Institute, BrewDog’s looming liquidation, Constellation Brands’ incoming CEO and global layoffs at Heineken.
Listen here or on your preferred podcast platform.
Editor’s Note: While the guests featured in this conversation are attorneys, the discussion does not constitute legal advice. Please consult your own legal counsel as needed.