Two years after the distribution shakeup of 2018, the aftershocks continue to be felt, as Anheuser-Busch InBev continues to reshuffle its network.
The world’s largest beer manufacturer today said it struck an agreement to acquire the assets of Ace Beverage in Los Angeles, just two weeks after agreeing to sell off its distribution operations in Colorado to Eagle Rock Distributing Company in Georgia. Terms of the transaction were not disclosed, but a spokesperson said about 5.5 million cases of product will change hands in the deal.
The latest transaction also follows an agreement in July to swap distribution rights from independent A-B wholesaler Triangle in Santa Fe Springs, in exchange for A-B divesting a portion of its wholly-owned Riverside distribution operation to Heimark Distributing LLC. It also comes one year after A-B acquired “key assets” from Markstein Beverage Co. in San Marcos, folding the business into its Anheuser-Busch Sales of San Diego.
In addition to A-B brands, the company said it would take on the distribution rights of outside brands, pending approval from the suppliers. Ace’s portfolio of non-A-B brands includes craft brands Karl Strauss, Drake’s, Hangar 24, Ninkasi and Ace Cider, among others. One craft supplier not included in the deal will be New Belgium, which also terminated its distribution deal with Ace earlier this summer.
A-B described the move as part of its ongoing strategy “to ensure the strength and stability of its wholesaler system’s route-to-market in California.”
Ace’s sale to A-B comes nearly two years after the Reyes Beverage Group acquired the rights to distribute the Constellation Brands beer portfolio in Los Angeles from Ace Beverage. That sale marked the fourth beer wholesaler change forced by Constellation in Southern California in 2018. In separate deals, Reyes acquired the rights to sell Constellation’s offerings — including popular imported Mexican beer labels Corona, Modelo and Pacifico — from Triangle Beverage in Santa Fe Springs, Beauchamp Distributing Company in Compton and Markstein Beverage Co. in northern San Diego County.
Those moves shook up the California distribution landscape, something Ace Beverage chairman and CEO John Anderson Jr. alluded to in a press release announcing the sale of his family’s nearly 65-year-old distribution business.
“With the challenging and competitive environment and the unexpected actions by various suppliers and distributors, we came to the difficult decision that the best path forward for Ace would be to sell key assets to Anheuser-Busch,“ he said in the release. “Anheuser-Busch was our first supplier and has remained our most outstanding supplier and loyal partner since 1956. We are so grateful for our customers who have been tremendous supporters of Ace, and we know they will continue to receive excellent service from Anheuser-Busch.”
“Ace Beverage LLC has been a reliable and valued long-time partner, and we thank the Anderson family for their nearly 65-year relationship with Anheuser-Busch,” A-B chief sales officer Brendan Whitworth added. “We pride ourselves on our connection to the communities where we live, work and operate, and we believe this purchase is an important evolution of our business in California that allows us to continue to bring a robust portfolio to consumers in the region.”
Once the transaction closes, which the companies expect to happen in December, A-B will shutter Ace Beverage’s warehouse. Employees of Ace Beverage will have the opportunity to apply to A-B’s Los Angeles-based wholesaler businesses, including the newly created Sales of Central L.A.