Beer Distributors Ramp Up Expansion Into Wine And Spirits

Spurred by consumer trends and the search for new revenue streams amid a sluggish beer category, some of the nation’s largest beer wholesalers have been moving aggressively into wine and spirits in recent years. Among them, large beer houses like Reyes Beverage Group, Columbia Distributing, and Andrews Distributing have been augmenting their lineups with wine and spirits suppliers lately.

Reyes is the largest beer distributor in the U.S., delivering 320 million cases across more than 115,000 accounts annually. It currently handles spirits and wine in 12 markets, and is planning for further expansion. “We see additional opportunities in many of our other markets, particularly in Florida, Tennessee, and Texas,” Reyes Beverage Group CEO Tom Day tells SND. “We’ve received a lot of interest from nationally and internationally known brands and have a rigorous evaluation process that allows us to strategically align with likeminded partners that are focused on driving growth.

“We’ve added some incredible new supplier partners like Sazerac, Brown-Forman, and Gallo,” Day continues. “We’re also growing with our longstanding partners such as Molson Coors, Constellation, Diageo, Mark Anthony, and Boston Beer, who have come to us when expanding their spirits portfolios. Additionally, as a result of being part of the broader Reyes Holdings enterprise, which includes Reyes Coca-Cola Bottling, we’ve established a great relationship with Red Tree Beverages, a Coca-Cola affiliate. They have worked with long-standing partners of ours like Molson Coors and Constellation on popular crossover innovations. We’re just getting started.”

Reyes scored a coup on the spirits side when it added Sazerac’s brands in California and parts of Texas last year, amid Sazerac’s larger shakeup of its distributor alignment. Andrews Distributing also picked up the Sazerac range in parts of the Lone Star State at the same time. Other Texas beer wholesalers that have added Sazerac brands include Houston Distributing, Faust Distributing, Keg 1, and L&F Distributors.

“Our partnership with Sazerac will usher in a historic new era,” said Andrews president and CEO Mike McGuire in announcing the deal. “We can extend our shopper marketing expertise and deliver the high level of customer service we are known for into the world of spirits.” Dallas-based Andrews said that just as it does for its beer products, it would employ specialized teams on the Sazerac brands.

Napa Valley-based wine giant Trinchero Family Estates also opted to add beer distributors to its mix last year when it announced its own realignment. Trinchero awarded its Oregon and Washington business to Columbia Distributing, which is known for beer but has been diversifying aggressively.

Columbia now distributes a total of 80 million cases of beer, wine, spirits, and non-alc products across Washington and Oregon. “We’re one of the few with scale across categories,” says Columbia president and CEO Chris Steffanci. In addition to Trinchero, Constellation linked with Columbia in the Pacific Northwest for three years, before it struck its nearly national partnership with Southern Glazer’s. Treasury Wine Estates also moved to Columbia in the Pacific Northwest in recent years. And like Reyes and Andrews, Columbia gained Sazerac’s brands last year.

Steffanci sees beer wholesalers continuing to move into wine and spirits looking ahead. “Beer distributor consolidation will ramp up and wine and spirits suppliers will look to those beer distributors that have diversified and offer their retail customers a total beverage solution,” he says. “Retailers love the total beverage model.” —Daniel Marsteller and Terri Allan

Tagged : Andrews Distributing, beer distributors, Columbia Distributing, Reyes Beverage Group, Sazerac, Trinchero Family Estates

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