Youngs And RNDC Arizona Partnership Strengthens Hand Against Industry Giants

Young’s Market Co and Republic National Distributing Co’s new joint venture in Arizona unites the two players in the only state where all the five top U.S. spirits and wine distributors operate. Young’s and RNDC have agreed to form a joint venture called Young’s Market Co Southwest LLC. The new entity will be led by president Mark Moser, who has more than 25 years of industry experience and was most recently president of RNDC’s Arizona operation. Sheldon Alexander, formerly vice president and general manager of Young’s Market Co of Arizona, will assume the role of vice president of sales of the joint venture. The deal is expected to close on August 1.

RNDC projects revenues of approximately $115 million in Arizona this year, while Young’s revenues in the state are projected at $55 million. But sources close to the deal say that that figure could soon rise to around $300 million via the addition of new business and organic growth. Alliance Beverage Co, a joint venture between Glazer’s Family of Companies and Charmer Sunbelt Group, ranks first at $410 million. Southern Wine and Spirits of Arizona is second at $270 million.

RNDC and Young’s are the U.S. market’s second- and fifth-leading spirits and wine distributors, respectively. Number-one player Southern, third-ranked Charmer Sunbelt and fourth-ranked Glazer’s round out the top five.

Arizona has been a desirable market because of dynamic growth trends, as its population essentially doubled from 1990 to 2010. But the state has been especially hard-hit by the downturn, as a huge housing oversupply continues to wreak havoc. Along with Nevada and Florida, it’s among the markets worst impacted by weak real estate trends. Still, all the top players have projected solid revenue growth for 2011.

GET YOUR FIRST LOOK AT 2021 DATA AND 2022 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2022 IMPACT DATABANK REPORTS. CLICK HERE.