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» Beverage Industry News » Big to Bigger

Big to Bigger

Beverage Industry News» Beverage Industry Newsposted May 31st, 2007 12:00:00AM by Pat Hagerman

Houston’s Anheuser-Busch distributor has agreed to buy the Budweiser distributor in San Antonio which it says will make it the nations’ largest wholesale Anheuser-Busch distributor.

Silver Eagle Distributors is planning to acquire San Antonio-based BudCo, which will join two of the largest beer distributor groups in Texas.

This deal follows suit to a growing trend of beer wholesalers consolidating to create “mega-wholesalers,” said Benj Steinman, editor at Beer Marketer’s Insight, a trade publication for the industry.

“These large entities are being created and it really is where the beer industry is headed,” he said. “We used to have 5,000 wholesale distributors over 35 years ago, now we’re down to 2,000.”

Industry sources put the deal at $250-$ million, or a whopping $20 per case.

“This is absolutely a transformative deal,” said Steinman The combined company “will control over half the volume for Anheuser-Busch in the state.”

Source: Chron.com

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Pat Hagerman

Posted by Pat Hagerman

Pat Hagerman is co-founder of ProBrewer.com. When he's not leading operations for ProBrewer you can find Pat working on Internet of Things (IoT) infrastructure and systems. If you're having a beer with him ask about some of the more original skills he's taught Alexa.

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