In a tectonic shift in the distribution landscape, Anheuser-Busch InBev (A-B) announced plans to sell its wholly owned distributor (WOD) in New York City to Southern Glazer’s Wine & Spirits (SGWS).
Once the transaction closes later this year, SGWS will launch Southern Glazer’s Beverage Company of New York, with a footprint covering Manhattan, Queens, Staten Island and the Bronx – all New York City boroughs except Brooklyn.
In the NYC area, Southern Glazer’s will offer A-B’s full product lineup, ranging from beer brands Michelob Ultra, Busch Light, Bud Light and Budweiser to spirits-based ready-to-drink (RTD) offerings Cutwater Spirits and Nütrl Vodka Seltzer, as well as newly launched energy drink brand Phorm Energy.
A-B vet Devyn Dugger will lead operations as senior VP of Southern Glazer’s Beverage Company’s New York division. Dugger most recently served as president and equity agreement manager of Ohio Eagle Distribution, which was sold to Redwood Holdings earlier this summer. That deal is expected to close September 8.
All A-B Bronx employees are expected to be retained, with Southern Glazer’s operating out of the borough’s existing warehouse.
A-B CEO Brendan Whitworth said in the announcement: “Since the establishment of the three-tier system and creation of the Anheuser-Busch independent wholesaler network, we’ve placed a priority on partnering with family owned and operated businesses. That’s exactly what Southern Glazer’s and the Chaplin family represent, and we’re excited that they are joining our world-class network of independent beer wholesaler partners.”
Southern Glazer’s Wine & Spirits president of commercial sales Mark Chaplin added: “Our deep expertise, capabilities, and knowledge of the New York City market will enable us to build on the strong momentum that the Anheuser-Busch distribution team has created and further position our companies for collective growth. Through our new dedicated New York beverage division led by Devyn Dugger, we look forward to distributing these industry leading brands and offering best-in-class service in this critical market.”
SGWS operates in 47 U.S. markets and Canada. The acquisition of A-B’s WOD in New York gives SGWS a foothold in one of the nation’s largest beer states. New York ranks fourth in beer shipments year-to-date (YTD) with more than 4.14 million barrels shipped (-7.3% year-over-year) through June, according to the Beer Institute.
The larger move in New York may have been foreshadowed by A-B’s transition of Cutwater and Nütrl to SGWS in California, announced in May. That shift moved those brands away from Republic National Distributing Company (RNDC), which is winding down its California business this month. Perhaps more noteworthy is that A-B opted not to sell its hot RTD brands to its existing Golden State network. (A-B WODs cannot sell spirits-based products.) SGWS also picked up the brands in Hawaii and serves as a broker in control states Alabama, Idaho, Maine, Michigan, Mississippi, Montana, New Hampshire, North Carolina, Ohio, Vermont, Virginia and Wyoming to A-B’s independent distributors where legally permitted to sell spirits-based RTDs.
Selling the NYC wholly owned distributor tracks with A-B’s strategy of the past several years. Last summer, the company sold off its branches in Massachusetts and Ohio, continuing a flurry of activity that began in 2020. Also that year, it sold its Oakland, California, distribution facility to a commercial real estate developer in May, swapped territories with Heimark Distributing in Southern California in July, and sold its wholly owned Colorado branch to Norcross, Georgia-based Eagle Rock Distributing in September.
Although most of the 2020 activity involved spinning off distributors, A-B also acquired Los Angeles-based Ace Beverage that fall.
The sales continued two years later, when A-B sold its Northern California operations to two independent wholesalers in its network, Markstein Sales Company and Matagrano, Inc. in July 2022. Two months later, A-B sold its Lima, Ohio operation to Ohio Eagle Distributing.
It hasn’t been all divestments for A-B’s wholly owned network. In January, the company acquired its brand rights from Sound Beverage in Bellingham, Washington. A-B operates a branch in Renton, a suburb of Seattle.
SGWS has been engaged in deals of its own as it attempts to transform into a total beverage distributor. In December 2024, the company closed on its acquisition of Horizon Beverage of Massachusetts and Rhode Island. Horizon’s beer portfolio included Molson Coors, Heineken USA, Boston Beer, Barrel One Collective and other local craft.
Editor’s Note: This post was updated to clarify the sale of the NYC wholly owned branch and SGWS’s role in the distribution of Cutwater and Nütrl in control states.