Shanken News Daily has learned from reliable sources that Bacardi management has told its long-standing distributor network that it’s moving its business across the U.S. to Southern Wine & Spirits and Glazer’s operations.

This unprecedented move to form a new U.S. distribution network comes just weeks after Southern and Glazer’s signed a letter of intent to form a strategic alliance.

Bacardi, the fourth-largest U.S. spirits marketer, with annual sales of around 15 million cases and distribution revenue of more than $1 billion, informed its distributors—which include Republic National Distributing Co., Breakthru Beverage Group (the new joint venture formed by Charmer-Sunbelt Group and Wirtz Beverage Group) and Young’s Market Co., among others—that it’s moving its business to Southern and Glazer’s in the more than 40 states in which the two distributors operate.

SND has also learned that Bacardi filed declaratory judgments against its current distributors at the advice of counsel. While we understand the company is not seeking damages through this action, it is aiming to protect itself amid the distribution shift.

We will be sharing more information with our readers as it becomes available.