As 2022 nears a close, middle tier consolidation has yet to slow down. The latest deal involves self-described “consolidator of beverage alcohol distributors” Keg 1 and its Keg 1 River City LLC subsidiary striking a deal to acquire River City Distributing Company in Louisville, Kentucky.
The transaction is slated to close in January 2023. Financial terms were not disclosed.
Once complete, Keg 1 will add “all of River City Distributing’s nearly 5 million cases” from a portfolio that includes Molson Coors, Constellation Brands, Boston Beer, Mark Anthony, Diageo, Heineken USA, New Belgium, Pabst, and Sierra Nevada, as well as additional craft, import, spirits, wine and non-alcoholic beverage brands. Keg 1 will also take on 2,632 retail accounts from River City in the greater Louisville and Kentucky market.
“KEG 1 is excited to work with existing River City Distributing leadership, management, and family of employees to maximize our goal to be the employer and distributor of choice in the Louisville market,” Travis Erwin, Keg 1 Partners LLC president and chief operating officer, said in a press release. “Through a collaborative focus between KEG 1 and current River City leadership, we will work on preserving the culture and legacy that has been proven successful for decades and for future generations to come.”
“We are excited about the future ownership and direction of the business for our employees, suppliers and customers as we are confident KEG 1 will build on our past success and be great brand stewards going forward,” John Harris, River City Distributing president, added.
Keg 1 “includes 10 of the leading distributors across the country, spanning 12 states and generates a combined annual sales volume of over 120 million cases,” according to the release.
Distributors under the Keg 1 umbrella include:
- KEG 1 Colorado (Colorado Springs, Colorado);
- KEG 1 O’Neal (Weatherford, Texas);
- Superior Beverage Group (Lewis Center, Ohio);
- Caffey Distributing (Greensboro, North Carolina);
- DeCrescente Distributing (Mechanicville, New York);
- Faust Distributing (Houston, Texas);
- Houston Distributing (Houston, Texas);
- Indiana Beverage (Valparaiso, Indiana);
- Gulf Distributing Holdings (Mobile, Alabama);
- Northeast Beverage Corp/C&C Distributors (Connecticut and Rhode Island);
- Merrimack Valley Distributing (Danvers, Massachusetts).
Earlier this year, KEG 1 partnered with Franchise Equity Partners to bid on Tennessee-based DET Distributing, but eventually lost out to the Reyes Beer Division.