OlympicsWirtz Beverage in deal to expand in state
Wirtz Beverage Group will form what be Illinois' largest liquor and beer distributorship in a deal that with Glazer's Distributors of Illinois that will result in the closing of Chicago's Union Beverage Co. and its brands being folded in under a new Wirtz operation.
Under the agreement, Union, which distributes Brown Forman spirits, E&J Gallo and a number of smaller brands, will cease operations in the state effective June 30. The new company, Judge and Dolph, LLC, will open the next day and assume distribution of the former Union brands as well as current Judge and Dolph Ltd brands, including Diageo , Barton Brands, Sidney Frank and others.
Wirtz Beverage Chairman and Chief Executive, W. Rockwell 'Rocky'' Wirtz, will become President of the new Judge and Dolph when the deal is completed.
The elimination of a liquor distributor in Illinois underscores the rapid pace at which the liquor wholesale business is consolidating nationwide. Once dominated by a host of family-owned businesses that carved up the liquor distribution business along state lines, the industry is now consolidating at lightening quick speed. In order to keep pace with bigger and more dominant liquor and beer companies, distributors are increasing in size just to compete.
Wirtz Beverage, owned by the wealthy Wirtz family whose holdings also include the Chicago Blackhawks, has been seeking deals and partnerships where it legally can to compete with a handful of other consolidators, most notably Southern Wine and Spirits, which also operates in Illinois.
Until the deal with Glazer's Union is complete, Judge & Dolph, with more than $560 million in revenue, is the second largest distributor in Illinois behind Southern. Union estimated revenues are roughly $300 million annually.
Terms of the deal weren't disclosed.
In a memo to his staff this morning, Rocky Wirtz indicated that more deals may be in Wirtz's future: 'This is, we hope, the first of many strategic initiatives to bolster the Wirtz Beverage Group position as an industry leader.''
In a statement Friday, Wirtz said: 'We approach this new relationship with Glazer's, whom we have known and trusted for many years, with great excitement.''
Glazer president Jerry Cargill said the company's decision to exit Illinois and enter into the deal with Wirtz was 'one that we considered carefully. The Glazer family and our executive team realized that we need to take the necessary steps to position the company for the future.''
jkirk@tribune.com
Copyright © 2008 Chicago Tribune, All Rights Reserved.
COMMENT ON THE STORY
Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.
Illinois Forum