Competition is about to get even stiffer in the U.S. wine and spirits market’s wholesale tier. Shanken News Daily has learned that the current Nos. 2 and 3 alcohol wholesalers—Republic National Distributing Co. (RNDC) and Breakthru Beverage Group, respectively—have announced plans to merge. The deal, which is subject to regulatory approval, is scheduled to be completed late in the second quarter of next year. It comes just a year after a merger created the $17.5 billion distribution giant Southern Glazer’s Wine & Spirits.
Together, the combined RNDC-Breakthru will have sales approaching $14 billion, with operations in 30 markets and a market share of about 25 percent. With that kind of clout, the new company will present Southern Glazer’s with a formidable new competitor with a scale and scope to rival its own.
The new company will represent a who’s who of top suppliers across the wine, spirits and beer categories. Major spirits partners include Beam Suntory, Brown-Forman, Diageo, Edrington, Moët Hennessy, Pernod Ricard, Proximo, Rémy Cointreau, Sazerac, Tito’s and William Grant & Sons. In wine, leading suppliers include Banfi, Constellation, Gallo, Jackson Family Wines, Kobrand, Ste. Michelle, Trinchero and The Wine Group. The beer portfolio will include Heineken, MillerCoors and a slate of craft brews.
For more details on this mega-merger, visit Wine Spectator's sister publication, Shanken News Daily.