ProBrewer.com

An Online Resource Serving The Beer Industry

  • News
    • News From The Breweries
    • Specialty Industry News
    • Major Brand News
    • Legislative & Regulatory
    • Distribution & Retail
    • Quarterly Financial Reports
    • International
    • Commentary
    • General News
  • Events
    • All Events
    • Essential Virtual Resources for the Brewing Industry
    • Virtual Brewing Conference Guide
  • Classified Ads
    • Latest Ads
    • Ads By Category
    • Help Wanted / For Hire
    • Search Ads
    • Post Classified Ad
    • Post Catalog Ad
    • About Classified Ads
  • Jobs
  • Discussion
  • Library
    • Archives
    • Brewery Floors
    • Brewstillery
    • Distilling
    • Distribution
    • ‘DIY’ floor coating
    • Electric Brewing
    • Filtration
    • Hops
    • Kegs
    • Keg Washers
    • Malt
    • Malt handling
    • Nano Breweries
    • Packaging
    • Pumps
    • Refrigeration
    • Shipping
    • Stupid Stuff
    • Turnkey
    • Used Tanks
    • Water
    • Yeast
  • Tools
    • IBU Calculator
    • Beer Specifications
    • Water Chemistry
  • Advertise
    • Advertise & Sponsorship on ProBrewer
    • ProBrewer Advertisers
  • Allied Trade Directory
    • Search Allied Trade Directory
    • Your Companies
    • Submit New Allied Trade Company
  • Login / Register
    • Login to ProBrewer
    • Discussions Login
    • Register
    • Password Reset
You are here: Home / Commentary / Reyes Group Picks Up Constellation in Southern California

Reyes Group Picks Up Constellation in Southern California

October 22, 2018

In a tectonic shift to the beer distribution network in one of the largest markets in the country, the Reyes Beverage Group has closed the deal on acquiring Constellation Brands beer portfolio from two more Southern California beer wholesalers.

 

Reyes picked up Corona, Modelo, Pacifico and Ballast Point from Beauchamp Distributing Company in Compton and Triangle Beverage in Santa Fe Springs. That makes three southern California wholesalers who have sold off their rights to Reyes to distribute Constellation brands after Markstein Beverage in San Diego sold in June. A fourth wholesaler, Ace Beverage in the Los Angeles area is also reportedly being forced to sell their Constellation brands to Reyes as well.

 

Various industry sources have pegged the deals at a 7x gross margin multiplier. At a roughly $5.00 per case gross margin, that equates to $35 per case or about $200 million for the brands in a footprint that covers much of southern California.

 

California does not have strict franchise laws, allowing Constellation to broker these deals against their distributors wishes.  Current “fair market value” is generally considered to be between 5-7x gross. Although the buyout of 7x gross was on the high end of that range, it was probably not a deal that the selling wholesalers were thrilled to do. The Constellation brands account for an estimated 30-45% of each of the selling wholesaler’s business.

Share this:

  • Facebook
  • LinkedIn
  • Reddit
  • Twitter
  • Pocket
  • Email
Mark Silva

Posted by Mark Silva

Mark Silva is co-founder of ProBrewer.com. From 1995-1997 Silva traveled more than 70,000 miles around the USA with Darci, his wife, to apple-seed the movement of brewers online. As much as he loves the creativity and craft of beer, it's the brewers and their stories that continues to inspire him most.

Search

Promoted
Degong Brew Systems logo
Degong Brew Systems
Dedicated To Making Great Beer!
Keg Logistics logo
Keg Logistics
Buy, Sell, Rent, Lease, Pay Per Fill, Export
Zahm & Nagel Co., Inc. logo
Zahm & Nagel Co., Inc.
100% American-Made
Johnson Thermal Systems Inc. • Crosby Hop Farm

Subscribe to ProBrewer Daily

ProBrewer Subscriptions

View previous newsletters.

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

 

 

 

Join the ProBrewer mailing list

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy and Cookie Policy

Connect With @ProBrewerPage

 Instagram    Facebook    Twitter

Go Somewhere Else

News • Classifieds • Help Wanted / For Hire • Discussion • Library • Contact • Advertise • Contact Details • Help

Copyright © 2021 · RealBeer Media · Privacy Policy · Terms and Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.