Breakthru Beverage is getting out of the beer business in Wisconsin.
“We are in the process of exiting the beer category in Wisconsin as part of Breakthru’s larger efforts to better manage our portfolio strategy,” Kevin Roberts, Breakthru EVP of supplier relations, said in a statement.
In a Facebook post on October 2, Frank Beer Distributors posted a welcome message to its new supplier partners — Deschutes Brewery, Montucky Cold Snacks and The Great Dane Pub & Brewing Company — coming over from Breakthru.
At the time, Milwaukee Magazine executive editor Chris Drosner confirmed that Deschutes Brewery, Montucky Cold Snacks and Great Dane were all moving to Frank Beer Distributors.
Breakthru announced the move today.
Products from Deschutes, Montucky Cold Snacks and Great Dane will now be distributed via Beer Distributors, Beer Capital and La Crosse Beverage in the state.
Deschutes VP of sales and marketing Neal Stewart told Brewbound that the company depleted 60,000 case equivalents over the last 12 months in Wisconsin.
“We had several conversations with Mike Frank from Frank Beer and were impressed with their passion for the Deschutes brand and their aspiration to grow our business,” he added.
The first shipments of Deschutes beer to Frank Beer are now en route, Stewart said. The company is also working to fill out the rest of its Wisconsin footprint.
Meanwhile, according to Frank Beer Distributors’ Facebook page, the company began selling Montucky products on November 1, and Great Dane offerings on October 5.
Breakthru’s move to exit the beer business in Wisconsin comes on the heels of selling its beer and cider portfolio in Illinois to Lakeshore Beverage. That deal was announced in August and closed in late October. Deschutes was among the craft brands to change hands in that deal.
In his statement today, Roberts reaffirmed Breakthru’s commitment to its beer business in other markets.
“We will continue making investments in our beer portfolio in other markets like you have seen with our recent Molson Coors expansion in southern Nevada and Boston Beer in Delaware as well as further investments in Colorado, Minnesota and South Carolina,” he said. “We are outpacing the growth of the overall market in these geographies and we see exponential opportunity for further expansion through excellent customer service.”
In Illinois, Deschutes depleted 100,000 case equivalents over the last year, Stewart said.
“I have pretty high hopes where we’re going in the upper Midwest part of the country,” he said. “We have a really strong business in Minnesota and Iowa, for that matter. And so, when I look at it geographically, Minnesota and Wisconsin seem to play off each other quite a bit and we’re excited about our partnership with Lakeshore in Chicago. So that gives us this contiguous area where we see some significant volume upside.”
Deschutes’ distribution with Breakthru in Illinois ended on October 31, Stewart said. The company is working to fill out the rest of Illinois with hopes to finalize agreements within the coming weeks, he added.
Breakthru operates wholesalers in Arizona, Colorado, Delaware, Florida, Maryland, Minnesota, Nevada, Pennsylvania, South Carolina, Virginia, and Washington, D.C. The Breakthru Beverage Group formed in 2016 after the merger of two multi-state wholesalers, Wirtz Beverage Group and Chamber Sunbelt Group.