Wine distribution consolidation continues

Just this morning I read the news that R&R, as they used to be known is merging with Allied in NJ, pending FTC approval. If approved & I’m starting to wonder why it would be, the new company will own over 2/3 of the NJ distribution market. How that will benefit consumers is beyond my understanding. I started Rad Grapes over 12 years ago when Southern bought Lauber Imports and since then the consolidation has only accelerated. The distribution is so consolidated I do not see how anyone benefits as it continues, certainly not wine shops or consumers.

The largest distributors can no longer grow sales, so the only ‘growth’ metric seems to be mergers, which only benefit the insiders. At the end of the day this presents even more opportunity for smaller distributors since the big distributor consolidation always leaves some smaller wineries with no other options in certain markets. but to look at partnerships with smaller wine distributors. We shall see how this newest NJ move pans out…

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About nick

I grew up on 3 continents and traveled the world as a kid thanks to my dad's professional soccer coaching carrier. I speak, read and write five languages perfectly, have a degree in International Business and have worked in the wine business in NY for 20 years. I've been married to my wife Laura for 17 years and we have beautiful triplet daughters. My passions are wine, fly fishing, photography, golf and the NY Jets and my most recent discovery is blogging.
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