Family-owned Phila. beer distributor acquires a rival

Family-owned Origlio Beverage, the largest beer distributor in Philadelphia, has acquired the entire portfolio of family-owned Bella Vista Beer Distributor, a Philadelphia wholesaler of craft beers, Forbes reported, citing an article in Beer Business Daily.

The article said the deal was prompted by the sale of San Diego-based Ballast Point Brewing and Tampa-based Cigar City Brewing to breweries that have distribution contracts with Origlio. Ballast Point sold to Constellation Brands, whose main subsidiary, Corona, is an Origlio supplier; Cigar City sold to a group led by Oskar Blues Brewery, also distributed by Origlio. Pennsylvania state law requires breweries to sign exclusive contracts with one wholesaler per territory.

“According to the [unnamed BBD] source, both Ballast Point and Cigar City wanted to join their parent/sibling company at Origlio but couldn’t necessarily get out of their contract with Bella Vista,” the Forbes article said. “Constellation and/or Origlio may have offered to buy Ballast Point from Bella Vista. But because the brewery reportedly comprises between 40% [and] 50% of Bella’s revenue, the independent wholesaler agreed to liquidate its holdings for an undisclosed amount instead of simply selling or trading the breweries.”  (Source: Forbes, Nov. 29, 2016.)