Southern Glazer’s Wine & Spirits has plans to acquire Horizon Beverage Group, Southern Glazer’s announced today.
The deal includes all of Norton, Massachusetts-based Horizon Beverage’s Massachusetts and Rhode Island operations and beer, wine and spirits portfolio, adding two states to the largest bev-alc distributor’s footprint, for a total of 46 states, plus Washington, D.C., Canada, the Caribbean and Central and South America, according to a press release.
Horizon’s beer portfolio includes Molson Coors, Constellation Brands and Boston Beer products, as well as Heineken, Harpoon, SweetWater, Narragansett, Switchback, Grey Sail, Partake and more.
Financial details of the acquisition were not disclosed. The deal will close “upon regulatory approval,” according to the release.
Once the deal is closed, Horizon’s business in the two states will operate as Southern Glazer’s Wine & Spirits of Massachusetts and of Rhode Island, respectively.
Horizon leadership will continue in both states, and will work alongside Southern Glazer’s east region president Scott Oppenheimer, according to the release. All of Horizon’s “family members and leadership team,” including co-chairmen Bob Epstein and Jim Rubenstein, will also maintain their existing roles “to help ensure a smoother transition for all employees, suppliers and customers.”
Horizon employs more than 600 people, and operates out of 800,000 sq. ft. of warehouse space with 100 delivery vehicles, according to the release.
“The Epstein and Rubenstein families have spent four generations building an exceptional business and legacy in New England that we have admired for years,” Southern Glazer’s CEO Wayne E. Chaplin said in the release.
“Horizon’s dedication to innovation and operational excellence, along with commitments to social responsibility, environmental sustainability, corporate citizenship, and diversity, create an ideal match for Southern Glazer’s business and culture,” he continued. “We expect all existing and new supplier partners, as well as customers, to benefit from our two companies’ strengths and expertise, and look forward to building on the great foundation already established in the valuable Massachusetts and Rhode Island markets.”
“We have full confidence in a seamless transition for all of Horizon’s valued team members and partners,” Epstein added. “I have enjoyed a more than 50-year relationship with the Chaplin family. Southern Glazer’s is the ideal partner with the size, scale and strength to support our employees well into the future, and to maintain our promise of high-quality service for customers and suppliers in New England.”
The acquisition news comes as the Federal Trade Commission (FTC) is reportedly preparing a lawsuit against Southern Glazer’s over pricing practices. The FTC began an antitrust investigation into the distributor in 2023 after regulators from the Alcohol and Tobacco Tax and Trade Bureau (TTB) and the Internal Revenue Service (IRS) raided Southern Glazer’s offices in Union City, California.
The investigation seemed to stem from a lawsuit against Southern Glazer’s filed by five small California retailers, who alleged the distributor offered more favorable pricing to larger chains, which would violate the Robinson-Patman Act.
During the FTC’s investigation, Retail Services & Systems, Inc. (RSSI), the parent company of national bev-alc retailer Total Wine & More, came under fire for failing to comply with the investigation and the FTC’s request for information. A settlement was reportedly reached in December.
Southern Glazer’s is also facing a lawsuit from e-commerce bev-alc platform Provi. Provi has accused Southern Glazer’s and the Republic National Distributing Co. (RNDC) of stifling competition. Provi filed its complaint in March 2022, alleging the two companies worked in a coordinated effort to “boycott, disparage and tortiously interfere with Provi’s business.”
Southern Glazer’s and RNDC filed a motion to dismiss the lawsuit, but a U.S. District Judge denied the motion in late May.