Ohio Eagle Distributing has a deal in place to acquire Anheuser-Busch InBev’s (A-B) AB ONE distribution operations in Lima, Ohio.
With the addition of the Lima branch, West Chester-based Ohio Eagle will expand its territory north. The independent A-B distributor serves nine counties in southwest Ohio: Butler, Warren, Preble, Clermont, Brown, Adams, Clinton, Highland, and Hamilton.
“Anheuser-Busch has proven to have its sights set on strengthening its system to ensure we are prepared for future success and remain at the forefront of the industry,” Ohio Eagle president Devyn Dugger said in a press release. “Ohio Eagle has proudly worked alongside Anheuser-Busch for many years, and we are excited to be building our relationship. We look forward to welcoming Anheuser-Busch’s local Lima team to Ohio Eagle and serving the great people of Ohio with the country’s best beverages for years to come.”
The acquisition will be Ohio Eagle’s second since its January 2015 founding, following owner John Saputo’s acquisition of Dickerson Distributing, according to the wholesaler’s website. Ohio Eagle acquired Clermont Distributing in 2018 and tacked on five new counties.
The deal will add 3 million cases to Ohio Eagle’s business, bringing its total volume to 8 million cases in Ohio, Beer Marketer’s Insights reported. In addition to the A-B portfolio, Ohio Eagle distributes offerings from Constellation Brands (Modelo, Corona, Pacifico), D.G. Yuengling & Son, Inc., Warped Wing Brewing, Country Boy Brewing, Municipal Brew Works, FigLeaf Brewing, March First Brewing and Sonder Brewing.
Financial terms of the deal, which is expected to close in mid-November, were not disclosed. This marks A-B’s second sale of an AB ONE branch this year, following the July announcement of its sale of AB ONE Oakland to Markstein Sales Company and Matagrano, Inc.
Last summer, A-B sold its AB ONE Hawaii business to The Odom Corporation. AB ONE engaged in a string of deals during the summer and fall of 2020. In July 2020, it swapped territories with Heimark Distributing in Southern California. In September 2020, A-B sold its wholly owned Colorado branch to Norcross, Georgia-based Eagle Rock Distributing. Two weeks later, A-B acquired Los Angeles-based Ace Beverage.
“At Anheuser-Busch, maintaining a strong focus on the needs of the local market is paramount to our long-term success. We are constantly looking for ways to shape the best possible route-to-market and create shared value for our customers, our consumers and the communities in which we operate,” A-B VP of business and wholesaler development Bob Tallett said in the release. “Ohio is a strong market for us, so it was critical for us to find a partner committed to the success of our local team and the growth of our portfolio.”
A-B also operates AB ONE branches in Southern California, Oregon, Washington, Oklahoma, Massachusetts and New York.
During Beer Business Daily’s Beer Industry Summit in January, North American zone CEO Brendan Whitworth noted that AB ONE branches at the time accounted for about 7% of the company’s volume.
A-B is limited to shipping no more than 10% of its volume through AB ONE, so the sale of its Ohio business will drive that number down. It was as high as 9% in 2016, according to a letter the National Beer Wholesalers Association (NBWA) sent the Department of Justice (DOJ) to comment on the proposed A-B/SABMiller merger. At the time the NBWA called into question the veracity of A-B’s self-reported volume flowing through its own network.