Meanwhile, small breweries who were formerly in NSD’s portfolio say the decision leaves them in the lurch. How do I outcompete those folks, especially as the landscape does get even more competitive?” says Rob Burns, cofounder and president of Night Shift Brewing and NSD. “My closest competition as a distributor is five times bigger than I am. For example, in California (America’s largest beer market), Reyes controls 43% of all beer sold after acquiring more than 10 other distributors between 20. Distributor consolidation, of which the NSD-Sheehan deal is just the latest example, has been occurring for decades because of the increased power wholesalers have when they expand their territories and add huge case volumes. NSD’s choice to sell many of its assets to a company as large as Sheehan-which competes against Reyes Beverage Group to be one of the largest distributors in the country-is a sign of how much size matters to long-term success in this tier. The move showcases how scale continues to be the most critical piece of wholesalers’ businesses, both in terms of their operations and the volume of beer they’re able to move. NSD has, since its founding in 2016, been a vocal champion of independent, craft-focused distributors and a critic of what it calls “antiquated wholesaler approaches.” Now, Night Shift Brewing will cede control of its distribution to a powerful, traditional wholesaler of the sort it once opposed. Night Shift declined to disclose financial terms of the deal. a network that includes 19 distributorships across 13 states. Sheehan will acquire NSD’s distribution rights in Massachusetts and Connecticut beginning Oct. Brewbound first reported the sale, which includes an unknown number of brands that will not transfer to Sheehan, leaving several producers without distribution unless they sign on with another wholesaler. This includes Night Shift Brewing beer, which it currently self-distributes. It’s another shakeup in the middle tier, as Everett, Massachusetts’ Night Shift Distributing (NSD) has announced it will sell distribution rights to some of the “35-plus” beer, wine, and spirits brands in its portfolio to the Sheehan Family Companies. Subscribe to PremiumĪ sale of distribution rights from a small, craft-focused company to one of the nation’s largest provides another example of how the shipping and placement of alcohol brands continues to favor distributors with the most power and money. Big plays, smart moves, and otherwise curious indicators of beer's possible future. From Barons to Barrels with Captain Pabst.Message in a Bottle with Brewery Ommegang.Beer is Labor with East Brother Beer Co.Let Go or Get Dragged by Jerard Fagerberg.Ferments at Low Temps by Stephanie Byce.
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