Spirits Distribution: Southern Extends Travel Sector Reach, Takes ICONIC; Lalo Tequila on the Move

Southern Acquires Leading Pan-Caribbean Distributor, Goes Nationwide With Brand House Group

Just in time for spring break, Southern Glazer’s Wine & Spirits announced plans to acquire Miami-based WEBB Banks, extending its footprint to the Caribbean, Central America and South America. The distributor will also now service WEBB Banks’ travel retail and cruise sector clients.

The acquisition, expected to close March 31, will expand Southern Glazer’s reach in the Atlantic region and in the travel retail sector.

“This acquisition provides another connection point for Southern Glazer’s and our valued suppliers who are looking for expert route-to-market capabilities across the Atlantic Basin,” said Scott Oppenheimer, Southern Glazer’s east region president in a statement.

Current CEO Andy Consuegra founded Miami-based WEBB in 2007 and then merged with Banks Channel in 2016 to establish the corporation. It is now the largest wine and spirits distributor in the Pan-Caribbean market, focusing on high tourist channels. Southern Glazer’s Travel Sales and Export Division launched in early 2017 and has since grown to serve 25 countries with nearly 70 different distributor, cruise, and duty-free operator partners.

Meanwhile, Southern Glazer’s has added another partner in bringing on luxury spirits producer The Brand House Group and its subsidiary ICONIC Spirits.

The portfolio includes OMAGE California artisanal brandy and its soon-to-debut O’RTE single-estate tequila, in addition to the Japanese portfolio of subsidiary ICONIC Spirits, which includes TEITESSA single-grain Japanese whisky and AWAYUKI Japanese Strawberry Gin, among others.

Wine and spirits industry veteran Julious Grant founded The Brand House Group in 2019, debuting a number of super-premium craft brands. That same year, Grant joined forces with Taichi Seki, previously a National Sales Manager for Asahi Beer and former pro MMA fighter, bringing to market a portfolio of Japanese spirits. Previously, Grant spent 30 years with global spirits corporations Beam Suntory, Bacardi, Moët Hennessy, Diageo and others.

“The move to Southern allows us to leverage Southern’s nationwide network,” Grant said. “By consolidating to one distributor nationally, we can get more efficient and effective on executing our brand-building strategies.”

The portfolio was previously split up between RNDC and Breakthru. The company’s priorities are to be more effective with restaurants and bars, and partner with key independent and chain retailers to create mutual value, Grant said. OMAGE is growing at over 200% annually in key markets, and the Japanese whiskies are growing significantly as well, he added.

Lalo Expands its Blanco Tequila with RNDC

Last week, Republic National Distributing Company (RNDC) announced its national partnership with LALO Spirits in 39 markets.

“We are thrilled to unlock the power of a national partnership with the LALO family brand and its new-fashioned LALO blanco tequila,” said RNDC CEO Nick Mehall in a statement.

Lalo has grown +130% year-over-year according to the most recent Nielsen data, making it the second-fastest growing of the 50 largest tequilas, according to the brand. The company was previously distributed in 12 U.S. states and Saint Barthélemy. With the expansion LALO is less focused on channels and more focused on building brand advocates in the on- and the off-premise, said director of communications Tyler Piluzza.

LALO Tequila was co-founded in 2017 by Eduardo “Lalo” González, the grandson of legendary tequilero Don Julio González. Eduardo González continues as a third-generation tequilero, working alongside co-founder David R. Carballido and LALO’s CEO Jim McDermott.

Carballido, a creative director, had a track record of working on projects for some of the spirit industry’s biggest names, including helping to launch Don Julio 70 Anejo Claro, one of the more notable releases in the wave of cristalino tequilas to hit the market in recent years.

The company aims to stand out in a crowded category by offering a single blanco tequila expression meant for sipping, and by lining up their pricing ($49) to compete with bigger premium brands in the same category.

The expansion will start in seven states in April, followed by roll-outs in May and June.

Blue Run Spirits Makes a Play for Whiskey Strongholds

Kentucky-based Blue Run Spirits is taking its luxury bourbons and rye whiskies to new U.S. states and Canadian markets.

The portfolio is now available in New York (Empire), Massachusetts and Rhode Island (Horizon), Washington (RNDC), Minnesota (Breakthru), and Ontario (Evergreen), bringing the company’s distribution footprint to 26 states nationwide, the District of Columbia and two Canadian provinces, including Alberta.

In addition, Blue Run announced its products are now available throughout Gopuff-owned retail outlets including Gopuff Liquor & More, Bevmo and Liquor Barn.

“Though ecommerce remains a key focus for Blue Run Spirits as part of our long-term growth engine, broad distribution nationwide is critically important as we look to build brand awareness and advocacy, particularly in the on-premise,” said Blue Run Spirits co-founder and CEO Mike Montgomery in a statement. “We are now available in all of the major consumer whiskey strongholds in the U.S. and are surging into the largest Canadian market. With six new releases planned this year, we guarantee a lot of great whiskey for our fans across the U.S. and Canada in 2023.”

Blue Run Spirits has introduced 13 bourbon and rye whiskey releases since launching in October 2020, selling 21,000 9 liter cases in 2022 – a 300% year-over-year increase. This year, the company is forecasting sales of 32,000 9 liter cases, and also plans to break ground on a $51 million, 35,000-square-foot distillery in Georgetown, Kentucky.

Ozha Hits Major Chains

Ohza, a canned mimosa and sangria ready-to-drink cocktail, will be landing in national chains this Spring, including Walmart, Costco, Circle K, Winco, Savemart and Albertsons/Safeway.

To support launching in Walmart across 20 states, Ohza is expanding distribution to Arkansas, Illinois, Missouri, Michigan, New Mexico, South Carolina, Tennessee and Virginia. The brand is also already available in retailers such as Total Wine, Bevmo!, Whole Foods, Fresh Market, and more.

In 2022, Ohza launched Fizzy Red and White Sangrias in partnership with musician and actor, Joe Jonas, a co-owner in the brand.

“We’re excited that these world class retailers believe in our brand and the differentiation we bring to the canned cocktail segment,” sais Ryan Ayotte, founder and CEO of Ohza. “With all-star distribution partners like Southern Glazer’s and Breakthru, and big marketing plans with Joe, we’re going to make a huge splash in 2023 as we strive to be the leading wine-based RTD company in the country.”

Other news:

  • Following a four-state launch in 2022, Green River Distilling Co, part of Bardstown Bourbon Company, is expanding this year with two new expressions and distribution in 21 new markets. Originally founded in 1885, Green River is the 10th oldest distillery in Kentucky. The distiller was bought by Bardstown Bourbon Company in July 2022.
  • Lexington-based RD1 Spirits announced its expansion of bourbon distribution to Indiana through RNDC, its first leap beyond its home state of Kentucky. The company also added several beverage alcohol industry veterans to the team.