Wine & Spirit Distributor M&A Consolidation Analysis
Explore the evidence of consolidation in the wine and spirit distributor industry, with major mergers and acquisitions leading to alleged market power and anticompetitive actions. Discover the impact on market share, Herfindahl-Hirshman Index, and impending changes.
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Wine and Spirit Distributor M&A - Deal Log - Evidence of Consolidation - Alleged Market Power Jeff Bodington, AAWE San Luis Obispo 2025
Distributor M&A deal log, 2010 2024 Over 50 transactions reported in the national trade press. Year Transaction Glazer s acquires Prestige Wine Cellars Glazer s acquires Harbor Distributing Glazer s acquires G&G Distributing 2010 Glazer s acquires Natchitoches Beverages Glazer s acquires Bolls Distributing Glazer s acquires Halo Distributing 2011 2012 2013 Glazer s forms partnership with Stoller Wholesale Distributing Glazer s acquires majority control of Star Distributing Foley acquires Epic W&S Southern W&S acquires Phoenix W&S Wirtz Beverage partners with McLane Co. Wirtz Beverage partners with Johnson Brothers 2024 Jeff Bodington, AAWE San Luis Obispo 2025
Findings: Evidence of consolidation Seven large distributors merged to become three (Johnson + Wirtz, Breakthru + Major Brands + Wine Warehouse, Southern + Glazer s). Top five acquired more than 30 smaller distributors (Southern Glazer s, RNDC, Breakthru, Johnson Brothers, Winebow) Top five have >30% U.S. market share and it is alleged to be more than 50% to 67% in some markets Herfindahl-Hirshman Index > DOJ s 1,800 threshold for presumption of market power and potential for anticompetitive behavior Jeff Bodington, AAWE San Luis Obispo 2025
Findings: Alleged market power and anticompetitive actions Price competition Predatory pricing to undercut and force out a competitor Make phantom or offset purchases Non-price competition Pay inducements to Control Board decision makers Support exclusive franchise laws Support franchise laws tailored to fit a certain distributor Support prohibition on inter-state shipments Demand broad exclusive and in some cases long-term agreements from retailers to get must have product Distributors now under pressure from declining sales and DOJ Announced June 2, RNDC to leave California Jeff Bodington, AAWE San Luis Obispo 2025
