Hand Family Companies (HFC) has made a blockbuster deal to add Stone Distributing Company and Classic Beverage in Southern California to its newly formed Sunset Distributing subsidiary, the multistate independent Anheuser-Busch distributor announced today.
The transaction is expected to close in around 60 days. Arlington Capital Advisors represented Stone Distributing in the deal, with financing provided by Wells Fargo and Overland Advantage.
The creation of Sunset via the Stone and Classic acquisitions will take Hand’s total case sales volume to more than 50 million cases. HFC operates existing branches in Illinois (Lakeshore Beverage), Kentucky (Bluegrass Beverage) and Tennessee (TriStar Beverage).
HFC president and CEO Charles W. Hand Jr. (JR) will also serve as Sunset’s CEO. The new brand is expected to retain Stone and Classic’s sales force and management teams.
“The combination of the Hand Family Companies’ scale and expertise with the local knowledge and proven talent of the SDC and Classic team creates a powerful route to market in Southern California,” JR Hand said in the announcement. “We’re excited about the opportunity to drive meaningful results for our suppliers and customers in the region.”
Stone Distributing GM Brian Fried added: “We are thrilled to join the Hand Family Companies and align with their rich legacy as a family-owned organization. Their proven success, commitment to partnership, and passion for brand building deeply resonate with both our suppliers and team.
“By combining the market strength and experience of SDC and Classic with the Hand Family’s drive to succeed in Southern California, Sunset Distributing is poised to create immense value and unlock exciting opportunities for the beverage industry for years to come.”
Classic owner CJ Sanchez said the decision to sell came “with mixed emotions … but, throughout this process JR and his leadership team have reaffirmed to me that this is the best decision for the company, its wonderful employees, supplier partners and customers. As the business is becoming increasingly about scale to offer great customer service, I am confident that Sunset Distributing will be the perfect company to offer that and much more well into the future.”
Stone Distributing was carved out of the 2022 sale of the Stone Brewing brand and breweries to Japanese beer giant Sapporo. The distributor has long been rumored for sale. Stone Brewing did sell its distribution rights in Northern California to Matagrano in early 2021, but maintained its business in the rest of the state. In 2023, Stone Distributing joined an alliance of Anheuser-Busch InBev distributors to form California Beverage Solution, a statewide network and alternative to the Reyes Beverage Group.
Meanwhile, Classic Beverage acquired 1 million cases from Scout Distribution in San Diego in June 2023. That deal followed a 2022 transaction that saw Scout and Classic merge beverage-alcohol portfolios in the greater Los Angeles area under the Scout Distribution LA banner. In 2021, Classic sold 6.8 million cases to Reyes’ Harbor Distributing, including Molson Coors, Mark Anthony Brands, Boston Beer, Heineken USA, Lagunitas, Firestone Walker, Pabst Brewing and Sierra Nevada.
Stone Distributing has more than 70 beverage partners in its portfolio, including a mix of craft breweries (21st Amendment, Alvarado Street, Avery, Beachwood, Coronado, El Segundo, Fremont, Maui, Modern Times, Mother Earth, Pizza Port, Russian River, Three Weavers, Crowns & Hops and more); beyond beer offerings (AriZona Hard, Big Sipz, Ashland hard seltzer, Boochcraft hard kombucha, Crooked Owl hard tepache, Jumex Hard Nectar, JuneShine, Nectar hard seltzer, Voyage hard iced tea); spirits brands (Four Sixes, Club Kokomo Spirits, Volley); hard cider (Blake’s Beverage, Austin Eastciders, Julian, Lost Lake); non-alc beer (Bero, Best Day) and more.
The company also distributes non-alc beverages, including AriZona tea, Don’t Quit sports nutrition drinks, F3 Energy and Just Ice Tea.
Classic Beverage’s portfolio includes non-alc beverages such as Poppi, Alani Nu, Prime, Aura Bora, Essentia, Fiji, HOP WTR, Gorilla Energy Drink, La Croix, Popwell, Sparkling Ice and San Pellegrino, among others. It’s craft beer portfolio includes Karl Strauss, pFriem Family Brewers, Rogue, Harland Brewing, Holidaily, Fort Point Beer Co. Creature Comforts, Drake’s, Topa Topa, Shiner, Thorn Brewing and Trumer, among others.
Editor’s Note: A previous version of this story listed an inccorrect portfolio for Classic Beverage.