Distribution

In this week’s edition of Press Clips: Reyes buys the Constellation Brands portfolio from Ace; beer shipments are down 2.1 percent in 2018; the U.S. brewery count eclipses 7,000; Utah mandates tests to ensure 3.2 ABW; and more.

Charlotte, North Carolina-based Sycamore Brewing is “living in fast forward,” according to vice president of sales Archie Gleason. The Kenny Chesney lyric appears apt for the 5-year-old craft brewery, which plans to double its beer and cider production by the end of the year.

Cincinnati’s Fifty West Brewing Company has quickly established itself as brand to watch. The Ohio-based craft brewery, which opened its doors in 2012, topped market research firm IRI’s list of new vendors in supermarkets, with off-premise dollar sales of nearly $214,000, for the 27 weeks ending July 8, IRI director of client insights Patrick Livingston shared during last month’s Brewers Association Power Hour.

Craft beer wholesaler Cavalier Distributing has acquired the distribution rights to “all suppliers” within the portfolio of Florida-based Micro Man Distributors. According to a letter sent by Cavalier founder and president George Fisher, that was addressed to its Florida beer suppliers, the transaction closed on Monday, October 22. Financial terms of the deal were not disclosed.

Constellation Brands has succeeded in forcing two more Southern California beer wholesalers to sell the rights to distribute the company’s beer offerings to the Reyes Beverage Group. In separate deals, Reyes acquired the rights to sell Constellation’s offerings — including popular imported Mexican beer labels Corona, Modelo and Pacifico as well as craft offerings from Ballast Point — from Triangle Beverage in Santa Fe Springs and Beauchamp Distributing Company in Compton. The long-rumored deals officially closed on Friday, October 19, according to Constellation spokeswoman Jamie Stein.

The former leaders of Saint Archer Brewing Company are back in the booze business after raising nearly $4 million to launch three separate beer, wine and distribution ventures. Anchored under Ocotillo Holdings LLC, the first of the three businesses — Scout Distribution, a craft-focused beer and wine wholesaler — officially launched Wednesday in San Diego. Led by Saint Archer co-founder Josh Landan, ex-VP Jeff Hansson and ex-market manager Anthony Levas, Scout Distribution will act as both a boutique wholesaler and a marketing consultancy.

In a move that will expand its U.S. distribution footprint to 29 states, Brooklyn Brewery announced Monday that it would begin selling beer in Colorado next month. The New York-based craft brewery, which also sells its products in 30 countries, is partnering with Elite Brands on the Front Range and High Country Beverage in Northern Colorado and the Western Slope. It plans to sell flagship Brooklyn Lager, as well as Bel Air Sour, Defender IPA, seasonal offerings, and draft-only releases.

Remarkable Liquids, a craft beer-focused wholesaler based in Albany, New York, has expanded beyond its borders. The company last week announced that it had launched statewide distribution of 15 brands in neighboring New Jersey. Interest from Remarkable’s existing suppliers, as well as Garden State retailers, pushed the distributor to expand its service area outside of its home state, according to partner Matt Hartman.

Reyes Beverage Group has struck a deal in Virginia that will make it the Mid-Atlantic region’s largest beer wholesaler. Premium Distributors of Virginia, a Reyes subsidiary, has reached an agreement to acquire the assets of Richmond-based Loveland Distributing Company, Reyes announced in a press release.

Buffalo Wild Wings’ presence at the 2018 Great American Beer Festival was merely an appetizer. The chicken wing restaurant, one of the largest chains in the U.S., will be regular menu item at numerous Brewers Association (BA) events over the next two years, including the 2019 GABF, the Craft Brewers Conference (CBC) and Homebrew Con. Its presence at additional BA events is part of a three-year sponsorship agreement with the trade group, Buffalo Wild Wings beverage innovation manager Jason Murphy told Brewbound.

Under the specter of Constellation Brands potentially forcing additional sales of its distribution rights in California, leaders from the National Beer Wholesalers Association stressed the importance of protecting state franchise laws to thousands of wholesalers and industry professionals attending the trade association’s annual convention in San Diego. NBWA chairman Jim Matesich, without naming Constellation Brands, pointed to trade press headlines from June when the beverage alcohol company forced Markstein Beverage Co. to sell its distribution rights in northern San Diego County to Reyes Beverage Group. “Terminations without cause, particularly of distributors that took risks and helped build those brands create distrust in trading partners,” he said.

In this week’s Press Clips: Anheuser-Busch plans to feature NBA and MLB athletes in ad campaigns; Celis Brewery assumes sales responsibilities for Uncle Billy’s and Pedernales brands; the Beer Institute releases domestic tax paid estimate for August; and more news.

Massachusetts Beverage Alliance (MBA) today announced the official launch of Homegrown Distribution, a boutique wholesaler focused on overlooked craft brands not currently getting enough attention from a network of five pre-existing wholesale partners across the state. As an offshoot of MBA, Homegrown Distribution will assume statewide sales and delivery responsibilities for several brands.

Surging freight costs, a shortage of long-haul truck drivers and new laws restricting the number of hours that drivers can be on the road are cutting into profits of beer companies and other major corporations throughout the United States. Although increased transportation costs are affecting all consumer goods industries, Beer Institute chief economist Michael Uhrich told Brewbound that they’re disproportionately affecting the beer industry because the vast majority of beer sold domestically is shipped. Last year, beer companies shipped 2.9 billion cases of beer, according to the National Beer Wholesalers Association.