US drinks distributor Southern Glazer’s Wine & Spirits (Southern Glazer’s) is to acquire the New York City distribution unit of Anheuser-Busch, the US arm of global brewing giant Anheuser-Busch InBev.
Financial terms of the deal were not disclosed.
The transaction, expected to close later this year, will see Southern Glazer's launch a New York beverage division, called Southern Glazer’s Beverage Company of New York.
The business will cover Manhattan, Queens, Staten Island and the Bronx.
Commenting on the agreement in a statement, Brendan Whitworth, CEO of Anheuser-Busch, said: “Since the establishment of the three-tier system and creation of the Anheuser-Busch independent wholesaler network, we’ve placed a priority on partnering with family owned and operated businesses.
"That’s exactly what Southern Glazer’s and the Chaplin family represent, and we’re excited that they are joining our world-class network of independent beer wholesaler partners.”
Simon Wuestenberg, chief sales officer at Anheuser-Busch, added: “We are confident this move will strengthen our business and we are excited to work together with Southern Glazer’s to continue to provide world-class service to our retail customers and consumers across New York City.”
Expected to close later this year, the agreement will see Southern Glazer's distribute Anheuser-Busch’s full product range available in the New York City market, spanning beer brands, spirits-based ready-to-drink products and its recently launched energy drink, Phorm Energy.
The AB InBev portfolio in the US includes brands such as Budweiser, Busch Light, and Bud Light, along with Cutwater Spirits and Michelob Ultra.
The new Southern Glazer’s Beverage Company of New York division will be led by Devyn Dugger who joins as senior vice president.
Dugger has more than two decades of experience in the Anheuser-Busch independent beer wholesaler network, having previously worked at Tri-Eagle Sales and Gold Coast Eagle Distributing in Florida and most recently as president and equity agreement manager at Ohio Eagle Distributing.
Wayne Chaplin, president & CEO, Southern Glazer’s Wine & Spirits said: “We could not be more excited to expand our business with Anheuser-Busch, the leading brewer and malt beverage supplier in the industry and an emerging leader in spirits and energy drinks, by acquiring their owned New York City distribution operation.
"We look forward to welcoming all current employees at this location to the Southern Glazer’s team and working together to grow these iconic brands.”
Following completion of the deal, Southern Glazer’s intends to keep all the brewery’s staff currently based at the Bronx facility, continue using the site, and distribute Anheuser-Busch’s products in the area served by the Bronx location.
Mark Chaplin, president of commercial sales at Southern Glazer’s, added: “Our deep expertise, capabilities, and knowledge of the New York City market will enable us to build on the strong momentum that the Anheuser-Busch distribution team has created and further position our companies for collective growth.”
The transaction comes a few weeks after Southern Glazer’s acquired Horizon Beverage Group, adding Massachusetts and Rhode Island to its US coverage, which now extends to 47 states.
