Another big wholesaler deal is going down, further consolidating the middle tier.
Reyes Beer Division has struck an agreement to acquire the assets of Indianapolis, Indiana-based Monarch Beverage.
“We are thrilled to have the opportunity to add a new state to our footprint,” Reyes Beer Division CEO Tom Day said in a press release. “Indiana is home to great brands, retailers and consumers. We are looking forward to learning the market and bringing our strengths and scale to our new customers.”
The deal will add 16.1 million case equivalents, 600 employees and more than 6,000 customers to Reyes’ 235 million case business. Monarch’s brands include Molson Coors, Constellation Brands, Heineken USA, Diageo, Mark Anthony Brands, Boston Beer, Yuengling, Bell’s Brewery, New Belgium, Sierra Nevada, as well as Indiana-based craft brands such as Three Floyds and Sun King.
Monarch operates a 500,000 sq. foot warehouse in Lawrence, Indiana, and moves 50,000 cases of product daily, according to the company’s website. Its territory includes 68 of Indiana’s 92 counties south of U.S. Route 24, a Monarch spokesperson told Brewbound. The only major markets in the state that Monarch does not serve are Fort Wayne, South Bend and Gary.
Edwin T. French Sr. founded Monarch in 1947 and the company is on its third generation of family ownership, according to the company’s website. At the time, Monarch sold only Carlin Black Label beer and employed six people.
“This acquisition represents the coming together of two great long-standing family-owned businesses, “ Monarch CEO Phil Terry said in the release. “Reyes Beer Division is a proven industry leader, and we are confident that they will be a great distributor for the state of Indiana and lead the business to further success.”
With the addition of Monarch, Reyes will now operate wholesaler businesses in seven states and Washington, D.C.
Reyes, the nation’s largest beer distributor and ninth largest privately held company in the U.S., has been particularly active in California in 2020. Reyes acquired Watsonville, California-based Elyxir Distributing in June, Richmond, California-based Bay Area Beverage in April, Sacramento, California-based Saccani Distributing in March, and Imperial, California-based Claypool Distributing in January.
Additionally, a Constellation spokesperson confirmed that the company has terminated two California Anheuser-Busch wholesalers — Couch Distributing in Watsonville and Bottomley Distributing in San Jose. Beer Business Daily reported that the two companies have deals to sell their Constellation portfolios to Reyes.
Monarch has also grown through mergers over the years, increasing to its current footprint via a string of 22 acquisitions between 1975 and 1999, according to its website.
Financial terms of the deal, which is scheduled to close on December 11, were not disclosed.