NEWS ALERT: Wirtz, McLane Enter Missouri Via Alliance With MoBev

Wirtz Beverage Group and McLane Co. have joined forces to acquire a stake in drinks distributor Missouri Beverage (MoBev), further shaking up a market whose middle tier has been a hotbed of activity of late. While terms of the deal weren’t disclosed, the parties involved say it’s expected to close in May, and that Bill Reichhardt will remain president of St. Louis-based MoBev, which distributes spirits, wine, beer and soft drinks in Missouri.

Ironically, MoBev was involved in a court case that has sparked a flurry of subsequent legal activity over the Missouri market among distributors and suppliers. In 2011, MoBev sued Shelton Brothers, claiming the brewer unlawfully terminated its franchise agreement when Shelton attempted to remove MoBev as its Missouri distributor. When a lower district court’s ruling against MoBev was affirmed by the Eighth Circuit court of appeals, Missouri’s franchise laws were dealt a harsh blow. Since then, suppliers such as Diageo, Pernod Ricard and Bacardi have challenged the state’s franchise laws, while Southern Wine & Spirits, the largest U.S. spirits and wine distributor, has made a concerted effort to enter Missouri (Southern is currently fighting in court against the state’s residency requirement for distributors).

Major Brands has long been Missouri’s leading spirits and wine distributor, while Glazer’s ranks second. Though both are significantly bigger than MoBev in Missouri, the addition of Wirtz and McLane provide MoBev with support from two powerful players. Chicago-based Wirtz is one of the top U.S. spirits and wine distributors with yearly revenues in excess of $1.7 billion, while McLane—owned by Warren Buffett’s Berkshire Hathaway firm—is a giant in the grocery distribution trade, with a presence in most U.S. states and more than $40 billion in yearly revenue. McLane also owns several spirits and wine distributors in the Southern U.S., including Empire Distributors, Horizon Beverage and Delta Wine & Spirits.

Tagged : Missouri, Wirtz Beverage

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