There is even more consolidation happening in the middle tier of the three tier system. According to Shanken News Daily, Southern Wine & Spirits, the country’s largest distributor, and Glazer’s, signed a letter of intent to form a strategic alliance.
“The two wholesalers’ combined revenue surpasses $16 billion, and they collectively operate in more than 40 U.S. states,” notes Shanken.
Southern operates in 35 markets and the Glazer’s in 15, but they only have seven markets in common, according to Shanken. “SWS is strongest on the coasts—California, Florida and New York comprise more than 60% of its revenues—while Glazer’s is particularly formidable in the country’s interior, with Texas, Louisiana and Missouri its three biggest markets.”