Expanding Markets: Top Wholesalers Continue To Build Out Their National Footprints

With most of the top spirits and wine wholesalers in the U.S. projecting solid revenue gains this year, it’s both organic growth and ongoing market expansion that’s on the docket. Several of the leading distributors nationwide have made acquisitions to enter new markets lately, continuing the middle tier’s long-term consolidation trend.

Republic National Distributing Co. (RNDC) has been particularly aggressive in recent years, entering Illinois through a partnership with Heritage Wine Cellars in 2021 and recently closing a similar joint venture deal with Opici Family Distributing to enter the New York market. Late last year came the news that RNDC would expand in New England, acquiring Ultra, a division of Horizon Beverage, for an undisclosed sum. That purchase included operations in Maine, New Hampshire, and Vermont. RNDC president and CEO Nick Mehall said of the acquisition, “This purchase is the last step to ensure RNDC is fully operational in New England and it is part of our strategic efforts toward a presence in every control state.”

Of course, RNDC’s biggest move of recent years was its entry into California and other western states, where last fall the company acquired full ownership of the former Young’s Market Co. “Since joining RNDC, Young’s Market Company has made a significant impact on our business, and this acquisition will open the door to further investment in our Western region operations,” said Mehall. This year, RNDC is projecting its California sales at $2.9 billion, making the Golden State its largest market.

In January, SND exclusively reported that Breakthru Beverage Group is set to enter California as well, via a purchase of Wine Warehouse for an undisclosed sum. Wine Warehouse has annual revenues of approximately $800 million, 650 employees, and facilities in both Northern and Southern California. Breakthru president and CEO Tom Bené called the move “a major milestone” for Breakthru. “It’s a critically important market,” he told SND. “This is a great business, and it dovetails nicely with other partners we have. We believe there are future growth opportunities there because we’ve had suppliers ask us about going to California, and so we think it’s a great step in the right direction given our strategy.” Wine Warehouse’s portfolio skews to the wine category and includes Gallo products as well as offerings from J. Lohr, Silver Oak, and Far Niente, among many others.

Breakthru plans to continue its expansion moving forward. “We have a strong desire to be the distributor of choice in every market we operate in,” says Bené. “Last year we announced the Major Brands acquisition in Missouri. We also did J.J. Taylor in Minnesota. We’re very focused on making sure we have the right resources and infrastructure in every market, in addition to continuing to grow our market footprint.”

Fourth-ranked Johnson Brothers has also added a number of new markets the past few years. Most recently, Johnson Brothers agreed to purchase the wine and beer distribution business of Dixie Beverage Company in Virginia for an undisclosed sum. “This strategic acquisition continues to grow our Johnson Brothers footprint in Virginia, further complementing our recent acquisition of Service Distributing Inc. in northern Virginia,” said chairman Michael Johnson.

Meanwhile, Massachusetts-based Martignetti Cos. agreed in February to purchase Connecticut’s Hartley & Parker from the Rosenberg family for an undisclosed amount, entering its sixth market. Hartley & Parker’s portfolio numbers some 6,000 brands, and the distributor serves more than 5,000 on- and off-premise accounts. Martignetti noted that it will be the only wholesale player present across all New England markets when the deal closes. In recent days, Martignetti followed with a play to acquire Quality Beverage, which handles beers from Anheuser-Busch and Constellation, further bolstering its Massachusetts operations.

Elsewhere, top-ranked Southern Glazer’s Wine & Spirits recently burnished its international profile with a deal to acquire Miami-based Webb Banks—a distributor of premium wine and spirits in Latin America and the Caribbean—for an undisclosed sum. Webb operates in 34 markets with more than 200 distributor partners, handling brands including Tito’s, Jägermeister, Disaronno, Skrewball, WhistlePig, Ghost Tequila, Robert Mondavi, Stags’ Leap, Caymus, Penfolds, and Rodney Strong.

Tagged : Breakthru, Dixie Beverage Company, Hartley & Parker, Johnson Brothers, Martignetti, Opici, RNDC, Southern Glazer's, Webb Banks, Wine Warehouse

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