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Exclusive: Breakthru To Merge New Jersey Operations With Market Leader Allied Beverage

July 14, 2017

Breakthru Beverage has dramatically expanded its footprint in New Jersey by combining with fellow distributor Allied Beverage Group, SND has learned.

Allied is New Jersey’s largest spirits and wine wholesaler, with revenues projected at $825 million for 2017, according to Impact Newsletter. New Jersey’s number-two player is Fedway Associates, at $790 million. Breakthru’s subsidiary in the state, Breakthru Beverage New Jersey, is at number-three with projected 2017 revenues of $365 million.

The newly named entity will operate as Allied Beverage Group, and will have total revenues of nearly $1.2 billion and a roughly 60% share of the market. The combined company’s portfolio will include Smirnoff, Patrón, Jose Cuervo, Jameson, Buchanan’s, Kendall-Jackson, Yellow Tail, Absolut, Bacardi, Johnnie Walker, Jim Beam, Hennessy, Baileys, Beringer and Campari, among other brands. The deal is expected to close by late summer.

Breakthru, formed through the merger of Charmer Sunbelt Group and Wirtz Beverage Group in October of 2015, is present in 15 states and Washington, D.C. It’s the nation’s third-largest spirits and wine wholesaler, with projected 2017 revenues of $5.53 billion. The U.S. market’s second-largest player is Republic National Distributing Co. ($7.5 billion), while Southern Glazer’s Wine & Spirits ($17.5 billion) is the overwhelming leader.

Breakthru’s New Jersey roots date back to 2004, when Charmer Sunbelt bought a 50% stake in distributor R&R. It acquired the remaining 50% in 2014, and company name became Breakthru Beverage New Jersey when Charmer and Wirtz merged to form Breakthru in 2015.—David Fleming

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