DBI Beverage Inc. has added 1.7 million new cases to its operation in San Jose, Calif., following the official closure of M.E. Fox & Company Inc., a local competitor that, in September, announced it would sell its beverage distribution business to DBI and Anheuser-Busch InBev.
In a statement, DBI Beverage said it purchased the distribution rights and related assets of M.E. Fox, including brands from 26 different suppliers. Among them, notable craft standouts include Boston Beer, Sierra Nevada, North American Breweries and Hangar 24.
DBI also acquired the rights to Constellation’s beer business, Heineken USA and Diageo-Guinness as part of the transaction. DBI will now distribute approximately 6 million cases of beverages in San Jose annually, it said.
Specific financial terms of the transaction were not disclosed.
“This adds about 5 percent to DBI’s overall volume,” James Block, VP of Sales and Supply Chain at DBI told Brewbound. “It also enhances our supplier consistency across our footprint.”
Not every brand M.E. Fox previously sold was acquired by DBI, however. Anheuser-Busch InBev repurchased the rights to its own brands, as well as those from LA’s Golden Road Brewing, which the larger beer company acquired in September.
A-B InBev will take over the distribution responsibilities of products sold throughout Santa Clara County, as well as in Oakland, Calif., where it also purchased Horizon Beverage Company’s distribution business. A-B InBev will consolidate delivery efforts in both markets and reportedly operate out of the Horizon Beverage warehouse.
DBI, which also has outposts in Sacramento, San Francisco, Stockton, Modesto, Napa, Ukiah, Chico and Truckee, will sell approximately 31 million cases of beverage products across its entire footprint, following the M.E. Fox acquisition.
Terence Fox, the former president of M.E. Fox, will join DBI and has been named vice president and GM of the company. In a statement, DBI said Fox would oversee the “combined operations.” Meanwhile, Dennis Fox, former V.P. of operations, and Catherine Fox, former the V.P of administration, have also accepted senior positions with DBI.
“Dennis, Catherine and I are excited to join the growing DBI Beverage team,” Terence Fox said in the statement. “Though the decision to sell our distribution rights was very emotional, it is wonderful to know that our family’s tradition in the beer business continues.”
DBI said it would temporarily operate out of two warehouses, including the current M.E. Fox warehouse, until a new 160,000 sq. ft. facility is completed in the fall of 2016.
In its press statement, DBI also shared a brief history of M.E. Fox, which we’ve included below.
The Fox Family’s legacy in the U.S. beer industry dates back to the founding of the Fox Deluxe Brewing Company out of Chicago in 1933. Michael E. Fox Sr.’s father, J. Raymond Fox, worked for several breweries after leaving Fox Deluxe ultimately retiring as Vice President, GM of the Hamm’s Breweries in San Francisco and Los Angeles. Michael E. Fox Sr. and his wife, Mary Ellen, founded H&B Beer Sales (Hamm’s & Budweiser) in 1965, eventually changing the name of the company to M.E. Fox & Company, Inc. reflecting their shared initials. Chairwoman Mary Ellen Fox’s father, James Croke, was General Counsel of the Schlitz Brewery in Milwaukee and was the chief negotiator for all the Milwaukee breweries during the Great Brewery Strike of 1954. Michael and Mary Ellen’s six children have all either currently or previously worked in the family business.