Interview, Part 2: Glazer’s Seeks Enhanced Role In Beer Distribution, New Markets
September 25, 2012Glazer’s Inc. is currently the nation’s fourth-largest spirits and wine distributor, with projected 2012 revenues at $3 billion. The company also has become a sizeable beer player in recent years, with 2012 beer distribution revenues projected at around $560 million. In the second part of this interview with Shanken News Daily, Glazer’s president and CEO Shelly Stein and COO Rob Swartz discuss the company’s commitment to beer, as well as other expansion initiatives.
SND: Glazer’s activities are centered in the middle of United States. Do you foresee expansion into other parts of the country through acquisitions, joint ventures or other means?
Stein: Absolutely. That is certainly our intent, and it’s more than a possibility. One of our great advantages is a very strong, conservative balance sheet, so we can move quickly. We also have a great due diligence team. And we live by our word. If we tell people we’re going to do something, we do it. Because of that reputation, people want to deal with us.
Swartz: In the last year, we’ve acquired the Victor L. Robilio Co., thereby expanding into Tennessee. We also did a joint venture in Alabama and Mississippi with Charmer Sunbelt, and we bought a fine wine company in Ohio called 55 Degrees. So in a relatively short period of time, we’ve been building.
SND: Beer has always been part of Glazer’s business, but it’s now assuming a much greater role. You’ve made a flurry of recent acquisitions. Will you pursue even greater growth in beer?
Stein: Today we’re the third-largest MillerCoors distributor in the United States. We have a great relationship with MillerCoors, and we will work closely with them in identifying future acquisition opportunities. There are around 600 MillerCoors distributors in the U.S., so those opportunities will arise. But they must be strategic, have the proper scale and be located in markets where we want to be present. Our purchase of (MillerCoors house) Halo Distributors last year in San Antonio—the largest acquisition in Glazer’s history—has been a fantastic addition. We’re now building a new 520,000-square-foot fully automated facility in San Antonio that will consolidate beer, wine and spirits under one roof. So we see beer as a great opportunity, and we’d like it to become a much larger piece of our overall business model. It provides many strategic benefits. Without question, we’ll continue to develop our beer business.
SND: In markets where it’s legal for beer, wine and spirits to be together on the same truck, does that create opportunities?
Swartz: In c-stores, it may make sense in some markets to deliver where they sell wine and beer only. We can also deliver that way to some grocery stores. So it’s market-specific, but where legal, it does become an efficiency.
Stein: A lot of our large retailers love the fact that they can deal with one company in that regard. We’ve gotten great feedback on that.
SND: Going forward, do you foresee working mainly with MillerCoors?
Stein: Yes. There’s no question that we’ve made our bed with MillerCoors. They are our partner.
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.Tagged : beer, Glazer's Distributors, MillerCoors, wine
