Lakeshore Beverage to Acquire Central Beverage’s Alcoholic Beverage Distribution Rights
February 27 2015 - 8:04PM
Business Wire
Lakeshore Also to Partner with Central Beverage
to Distribute Non-Alcoholic Portfolios
Lakeshore Beverage and Central Beverage Company of Broadview,
IL, have entered into an agreement whereby Lakeshore will acquire
Central Beverage's alcoholic beverage distribution rights.
Lakeshore and Central Beverage also will form a joint venture to
distribute both companies' non-alcoholic portfolios.
In addition to servicing the acquired alcoholic beverage brands
in Central's alcoholic beverage distribution territory, Lakeshore
will provide all operating functions for the JV in the companies'
combined non-alcoholic distribution territory. The owners of
Central Beverage will provide strategic direction and brand
management for the jointly owned non-alcoholic brands as well as
transitional support for the alcoholic beverage brands transferring
to Lakeshore.
"Lakeshore Beverage and Hand Family Companies are very excited
to add the wonderful suppliers of Central Beverage to our fold. We
hope to build upon the successes of Central and move forward for
many years of sustained partnership together," said J.R. Hand,
President and CEO of Lakeshore Beverage and Hand Family Companies.
“Since we have entered the Chicago market, we have focused on
continued share growth for our current suppliers and our total
business. This transaction is another huge leap for our employees,
suppliers and shareholders to solidify our company as the number
one distributor in Chicago and the entire state of Illinois.”
"It's a natural progression for our brands to be represented by
Lakeshore Beverage in the Chicagoland area as their market share
and importance in Illinois continue to grow. This transaction will
help support accelerated growth and strengthening of both the
acquired and JV brands and territories serviced. The non-alcoholic
JV provides a great opportunity for me and my two partners, Mark
Muench and Patrick Savaiano, to transition into strategic
supporting roles representing many highly regarded and growing
brands," said Donna Spagnola, President of Central Beverage. "We
are pleased and excited to be able to provide our suppliers with a
strong new partner to foster their continued growth."
Both companies distribute a wide array of beer and non-alcoholic
beverage products. Lakeshore, with approximately 23.5 million case
equivalent annual sales, is the largest distributor in Illinois
servicing central and northern Illinois with AB InBev brands, as
well as local and regional craft brands Goose Island and Founders.
Their non-alcoholic brands include Monster, Nesquik and Icelandic
Glacial. Central Beverage's alcoholic distribution territory
includes central and southern Cook County where they represent the
Pabst Brewing Company, North American Brewing Company, City
Brewing, St. Killian's Imports and craft brands Bells, Rogue and
Schlafly. In their eight county Greater Chicagoland non-alcoholic
territory, they sell Arizona teas and juices, Sparkling Ice
flavored waters, Lacroix water, Everfresh juices, and other new age
beverages. Central Beverage's total annual sales are approximately
4 million case equivalents.
Pending requisite supplier approvals and legal notice
requirements, the transaction is expected to close April 30.
About Lakeshore Beverage
Lakeshore Beverage, formerly known as River North Sales and
Service and CITY Beverage, is a Chicagoland distributor that is
deeply passionate about bringing the world’s best beers and
beverages to the world’s best city. The Company, founded in January
2014, distributes approximately 23.5 million annual case
equivalents and has approximately 650 employees. Lakeshore Beverage
has spent the last year transitioning from the five separate
distributorships of City Beverage and River North into one
distributorship operating five warehouses with a corporate office
located in the west loop of downtown Chicago.
Lakeshore BeverageJ.R. Hand, 931-552-3300